LONDON (Alliance News) - Merlin Entertainments PLC on Thursday reported growth in revenue in the first 36 weeks of 2015 as a good performance by Midway Attractions and LEGOLAND Parks offset a decline at Resort Theme Parks after the rollercoaster accident in June.
The theme park and attractions operator said that group revenue in the 36 weeks ended September 5 grew by 2.2%, or 0.3% on a like-for-like basis.
Of this, Midway Attractions registered revenue growth of 6.5% and LEGOLAND Parks saw a 9.2% rise, but Resort Theme Parks suffered a 13.2% decline in revenue following the accident at Alton Towers in June in which a rollercoaster crash left several riders seriously injured.
On June 2, riders on the Smiler rollercoaster at Alton Towers were trapped 25 feet up at a 45 degree angle for up to four-and-a-half hours after two carriages collided, resulting in 16 people being injured, including four seriously.
Since the crash, Merlin has reviewed its safety and operating procedures, alongside the UK's Health & Safety Executive. Alton Towers reopened shortly after the accident but the Smiler ride has remained closed.
"The trends we reported at the half year have continued throughout the summer. The performance of our LEGOLAND Parks Operating Group has remained strong, with very positive guest satisfaction. However, this has been offset by the impact of reduced visitation across the Resort Theme Parks Operating Group, primarily at Alton Towers Resort, and euro weakness impacting visitation at our London attractions," Chief Executive Nick Varney said in a statement.
Merlin added that it expects underlying pretax profit for the full year to be broadly in line with last year, and that Resort Theme Parks' earnings before interest, tax, depreciation and amortisation will be at the lower end of the GBP40 million to GBP50 million guided range. It said that there may also be an ongoing adverse impact on the Resort Theme Parks Operating Group profitability in 2016.
"While near-term challenges remain, the group is making good overall progress on its growth strategy. We have significant new investments planned across the estate and are well placed to deliver these in 2016 and beyond," Varney said.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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