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Merlin Entertainments, Europe’s leading and the world’s second-largest visitor attraction operator, announces its financial results for the fiscal year 2011 ended on December 31, 2011.
The group delivers a strong and resilient double digit growth in turnover and profitability, against a tough economic backdrop. Revenue increased 18.1% to £945.7 million (about $1.5 billion) compared to £928.4 million in 2010. The operating profit increased 16.9% to £231.4 million (about $370 million). Group figures at constant currency on a 52 week basis are +15.3% (revenue) and +10.2% (operating profit). The summary chart below gives more details about the financial highlights.
Performance was driven by increasing visitor numbers (47.3 million, + 15.4%), a continued international expansion, successful roll-out of Midway attractions and ongoing investment in existing estate. Capital investment were of £174.1 million (about $279 million) during the year, comprised of £75.6 million on existing estate and £98.5 million on new business development, all funded from operating cash flow. The balance sheet is also strong enough to support future growth plans with a net debt of £1,209 million (about $1.9 billion), a maturity extended to July 2017 and finance in place for acquisition of Living & Leisure Australia.
The group states that good performance across all three Operating Groups (Midway Attractions, LEGOLAND Parks and Resort Theme Parks) through 2011 underlines Merlin’s continued development as an international, high-growth, family entertainment business with iconic brands.
Key points of performance
- the establishment of Merlin’s biggest ever new attraction with successful opening of LEGOLAND Florida (USA) in October – marking Merlin’s move into the world’s largest family tourist market;
- a record-breaking number of Midway openings with seven attractions launched, across 4 countries, including two within the iconic Blackpool Tower Complex in UK;
- Resort Theme Parks strengthened with investment in new roller coasters in Heide Park in Germany (KRAKE) and Gardaland in Italy (Raptor)
‐ a successful first year of operations in Australia with revenues and profits ahead of expectations, following the acquisition of the Sydney Attractions Group; further move into the Asia Pacific market with announcement of plans to acquire Living & Leisure Australia with businesses in Australia, South Korea, Thailand and China.
The forecast for 2012 are positive with a strong schedule of new attractions planned through the year including the opening of LEGOLAND Malaysia and the LEGOLAND Windsor Hotel (UK); six new Midway attractions in four countries and new rides at Thorpe Park, Alton Towers and LEGOLAND Billund. By the end of 2012, Merlin will have 94 attractions across four continents. Moreover, the group says that current trading are in line with expectations.
Nick Varney, Chief Executive of Merlin Entertainments, said: “Last year was the most exciting in the history of Merlin Entertainments as we delivered a further step-change in the performance of the business, while significantly extending our international profile. The highlights have included the hugely successful opening of LEGOLAND Florida, the addition of a whole new leg of the business as we bedded in our new Australian businesses and identified a second acquisition to add to them, and our most ambitious ever opening plans with seven new Midway attractions added across our five brands. At the same time, we continued to invest in our existing estate with thrilling rides like Raptor in Italy and Krake in Germany. Our determination to deliver unforgettable experiences for our customers worldwide led to a 13.2% increase in visitor numbers – meaning we welcomed over 5 million visitors more than ever before, even against the backdrop of the tough economy."
“Merlin now operates 88 attractions in 19 countries across four continents, and in the year ahead we will develop the business further. This year we will open our sixth LEGOLAND Park in Malaysia, further strengthening our rapidly growing business in the Asia Pacific region; we have opened a hotel at LEGOLAND Windsor; and we will add six new Midway Attractions – three in the US, one in Japan, one in Australia and one in the UK. Our theme park fans in the UK will be thrilled by new rides with The Swarm at Thorpe Park and Nemesis Sub-Terra at Alton Towers while visitors to LEGOLAND Billund will enjoy the new Polar Land."
“Against this backdrop we approach the start of our key trading period in confident mood. While the outlook for the consumer economy remains uncertain we believe our strong brands and our relentless focus on customer satisfaction mean we will continue to provide thrilling days out for our millions of customers. We will continue to invest for growth under our proven strategy of growing our strong brands in a portfolio of attractions balanced by geography, product and demographics and we are therefore confident that Merlin will again make good progress.”
Merlin uses a number of international brands including SEA LIFE, Madame Tussauds, the Dungeons, LEGOLAND and the Eye. In addition, Merlin also operates a number of leading national brands such as Thorpe Park and Alton Towers in the UK, Gardaland in Italy and Heide Park in Germany. The company is a privately owned company whose primary shareholders are the Blackstone Group, KIRKBI A/S, CVC Capital Partners, and members of the management team.
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NewsParcs will do a full coverage of the IAAPA Attractions Expo 2013 in Orlando to have a look at the latest trends and developments of the global theme park industry.
