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The Liseberg Group, which operates in Gothenburg, Sweden the Liseberg amusement park and several restaurants, hotels and tourist accommodation, reported record sales of 974 million Swedish kronor (SEK), ie approximately 150.5 million dollars, for the year 2012.
This result is beyond expectations of the management, bad weather conditions during the summer season having negatively impacted the attendance of the park that hosted 2.8 million visitors, a decrease of 4% (about 100,000 admissions) compared to the previous season. The net profit of the group's activities amounted to SEK 73.6 million (approx $11.4 million), which is also considered as a good financial performance.
"In 2012, we have had no major new attractions, we have frozen the entrance prices and we left the cut in VAT in catering to the benefit of our guests," explains Andreas Andersen, President and CEO of the Liseberg Group. "Our company generally achieves a rather low margin. However, despite the steady increase in labor costs and purchases of about 20 to 25 million SEK annually, we controlled our spending rigorously".
The city of Gothenburg, owner of the Liseberg Group, is going to get about twenty million SEK on earnings while the rest will be reinvested for future developments. The city also considers that the various subsidiaries of the company had a total impact of about SEK 3 billion (approximately $464 million) on local economy.
For the upcoming operating seasons, the Group announced that it will spend about SEK 400 million, or $62 million, for the two biggest investments in its history. This year, the park will open a new family themed area called 'Kaninlandet' with a dozen rides and activities including a small roller coaster. In 2014 will be added 'Projekt Helix', a unique multi launch coaster custom designed by MACK Rides whose layout was recently modified with the addition of a seventh inversion.
"After 2012, where we had fewer guests – but also a better financial result - than anticipated, we have high expectations for 2013," adds Andreas Andersen. "We present the largest investment in Liseberg's history with our new children’s area, and we have a strong line-up of concerts celebrating our 90th anniversary. With a relatively stable Swedish economy, and weather hopefully better than last year, we hope for a good summer season."
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