Merlin Entertainments sees profits slide as Lego movie fails to inspire
Merlin Entertainments on Thursday reported a drop in profits after an unexpected lack of momentum from the release of Lego Movie 2 led to a disappointing performance at its Lego attractions.
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The attractions operator said the results were "broadly in line" with expectations as it registered underlying profit before tax of £34m for the six months ended 29 June, which was down 22% on the comparable period in 2018, after like-for-like sales fell by 0.7% at Legoland.
Nick Varney, chief executive of Merlin, said: "Trading in LegoLand Parks has however been more disappointing. Although we enjoyed a strong Easter and Spring Break performance, trading since then has been affected by poor weather in May and June, difficult market conditions in a number of countries and limited momentum from 'The LEGO Movie 2'."
However, overall revenue grew by 8% to come in at £763m as total visitor numbers rose by 3% to 30.8m and the FTSE 250-listed company saw improvement at its London attractions, which include Madame Tussauds, the London Eye and the London Dungeons.
The opening of eight new Midway attractions has also contributed positively to the growth in revenue, leaving Merlin keen to continue investment in its three new brands - Peppa Pig World of Play, Little BIG City and The Bear Grylls Adventure.
The figures come after Merlin's board recommended a £4.8bn takeover bid in June from a consortium composed of Lego owners Kirkbi, a private equity giant and a Canadian pension fund, in a deal that would see Merlin exit the stock market and enter the consortium's private ownership.
Merlin Entertainments' shares were up 0.24% at 452.60p at 1103 BST.