Merlin Entertainments 2016 revenue and visitors increase
Legoland and Alton Towers owner Merlin Entertainments reported a rise in revenue and an increase in visitors for 2016 following a recovery in its resort theme parks.
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Revenue grew 11.7% in 2016, or 3.6% on a constant currency basis, to £1.45bn, compared to the previous year, as visitors increased 1.3% to 65.1m.
This resulted in a 7.7% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) of £451m, although on a constant currency basis EBITDA fell 1.8% due to challenging trading in a number of key markets which was not fully offset by actions taken during the year to mitigate against costs.
This was also similar to operating profit which rose 3.6%, but fell 6.2% on constant currency, to £320m and pre-tax profit was up 3.4% on actual rates to £277m.
Like-for-like revenue growth in the resort theme parks operating group was up 4.3% and the company said that there the recovery at Alton Towers was well underway after the accident in June 2015, with strong performances from the wider estate.
LFL revenue grew 1.6% in the Legoland parks operating group.
Adjusted earnings per share rose 9.3% to 20.8p and the company declared a dividend of 7.1p, up 9.2%.
The FTSE 100 company is currently involved in transforming its theme parks into destination resorts, rolling out new Midway attractions in the US, Turkey, Indian and Germany and has new Legoland developments in Dubai and Japan in the works.
Chief executive Nick Varney said: "We have seen the continuation of a recovery in resort theme parks, steady growth in Legoland parks and a strong contribution from new business development. The external environment continued to present challenges in a number of our key markets although the impact of this was offset to some degree by cost control measures taken during the year.
“As we move into 2017, with ongoing volatility in a number of our markets and continued cost pressures, we will increase our focus on cost efficiency and productivity, while continuing to invest in our product, marketing, and people to deliver safe and memorable experiences to our guests.We continue to be excited about the long term growth opportunities for Merlin. Whilst we are planning prudently, we remain confident of a good performance in the year ahead."