14 May 2015 07:00
Merlin Entertainments plc - Trading Update
Continued progress on growth strategy
Satisfactory start to the year across the estate
Full year expectations unchanged
Merlin Entertainments today reports its trading performance for the 18 weeks to 2 May 2015.
Key trading highlights
· Constant currency1, total Group revenue growth of 6.5%
· Reported currency, total Group revenue growth of 7.2%
· Like for like2 revenue growth for the first 18 weeks of the year of 3.3%
Merlin has had a satisfactory start to the year, with steady trading and continued progress across our strategic growth drivers.
Revenue grew by 6.5%, on a constant currency basis, reflecting the positive like for like performance, the full period impact of new attractions and accommodation opened in 2014, and the contribution from sites opened in the period.
Foreign exchange movements provided a mildly positive impact due to the geographic seasonality of the business, with trading during the period weighted more towards North America. This resulted in total reported revenue growth of 7.2%.
Within the overall Group result, like for like revenue growth of 3.3% was driven primarily by favourable weather in Europe across the early season holiday periods, and good guest engagement with the new product and features across the estate. The two US LEGOLAND Parks, which are open year-round, also benefited from promotional activity related to 'The LEGO Movie' that came to an end in April 2015.
The Group's financial position remains strong. As previously communicated, the refinancing, which took place in the period, reduced financing costs, extended maturities and diversified Merlin's sources of funding.
Strategic Update
Recent or upcoming strategic developments include:
Growing the existing estate through planned capital investment cycles
• 'Oblivion' drop-coaster launched in Gardaland, Italy, in late March, to strong initial guest feedback
• 'Star Wars' attractions to open at Madame Tussauds London and Berlin in May
• LEGO 'Friends' features to launch in Windsor and California in May, and Florida in June
Transforming our theme parks into destination resorts
• 'The Enchanted Village' comprising 120 lodges and five premium tree houses launched at Alton Towers Resort, UK, enjoying excellent early bookings
• 152 bedroom fully-themed hotel at LEGOLAND Florida to open in May
Rolling out new Midway attractions
• Five new Midway attractions opened to date in 2015: Madame Tussauds Orlando, SEA LIFE Orlando and Orlando Eye, LDC Osaka and SEA LIFE Michigan
• The pilot of the new Midway brand, 'DreamWorks Tours - Shrek's Adventure!', to open in London in July and LDC Istanbul expected to open in August 2015
Developing new LEGOLAND Parks
• New LEGOLAND Parks in Dubai (2016), Japan and South Korea (both 2017) remain on track
Nick Varney, Merlin Entertainments' Chief Executive Officer, said:
"Merlin has had a satisfactory start to 2015, having made tangible progress across our strategic growth drivers. Perhaps most importantly however, guests are telling us they love our new products and attractions!
"Looking forward, we are positive on the outlook for the remainder of the year. At this early stage of the season, our full year expectations remain unchanged, although we remain mindful of the potentially negative impact a weaker Euro could have on Eurozone visitation to the UK."
Conference Call:
A conference call for analysts will be held this morning at 07:45. Dial in details are as follows:
UK Toll Number: | 020 3139 4830 |
UK Toll-Free Number: | 0808 237 0030 |
Participant pin: | 42128984# |
Playback facility will be available after the call and for 30 days therein:
UK Toll Number: | 020 3426 2807 |
UK Toll-Free Number: | 0808 237 0026 |
Conference Reference: | 656472# |
Contact details:
For further information please contact:
Investors
Alistair Windybank / Simon Whittington | +44 (0)1202 440 082 |
Media
Tulchan Communications Stephen Malthouse / Chris Hughes / Victoria Huxster
|
+44 (0)20 7353 4200 |
1Constant currency revenue growth is calculated using 2015 exchange rates.
2Like for like growth refers to the growth between 2014 and 2015 on a constant currency basis using 2015 exchange rates and includes all businesses owned and operated before the start of 2014.
Notes to Editors
MERLIN ENTERTAINMENTS plc is the leading name in location based, family entertainment. Europe's Number 1 and the world's second-largest visitor attraction operator, Merlin now operates over 100 attractions, 11 hotels and 4 holiday villages in 23 countries and across 4 continents. The company aims to deliver memorable experiences to its more than 60 million visitors worldwide, through its iconic global and local brands, and the commitment and passion of its circa 26,000 employees.
About our attractions:
Merlin operates two distinct products, managed in three Operating Groups.
Midway
'Midway' attractions are high quality, branded, indoor attractions, with a typical 1-2 hour dwell time, located in city centres or resorts. There are over 90 Midway attractions across 21 countries, with five main chainable brands: SEA LIFE, Madame Tussauds, The Eye (observation attractions), The Dungeons and LEGOLAND Discovery Centres. There is also a new brand concept, 'Shrek's Adventure!', under development with DreamWorks Animation that will open in Summer 2015 on London's iconic South Bank.
Theme Parks
Merlin's theme parks are larger multi-day outdoor destination venues, increasingly incorporating on-site themed accommodation. These are organised into two specific Operating Groups, based on the brands.
· LEGOLAND Parks - Six LEGO themed interactive theme parks appealing to younger families with children aged 2-12. The LEGOLAND Parks estate spans five countries across three continents, with plans already announced for further parks in Dubai (2016), Japan and South Korea (both 2017) .
· Resort Theme Parks - Six nationally recognised destination theme parks arranged around a central theme. The parks include Alton Towers Resort, THORPE PARK, Chessington World of Adventures Resort, Warwick Castle, Gardaland Resort (Italy) and Heide Park Resort (Northern Germany).
Attraction Numbers
Movement in attraction numbers between 27 December 2014 and 2 May 2015:
UK | Cont. Europe | Americas | Asia Pacific | Total | ||||||||||||||||||||
27 Dec 2014 |
Mov't | 2 May 2015 | 27 Dec 2014 |
Mov't | 2 May 2015 | 27 Dec 2014 |
Mov't | 2 May 2015 | 27 Dec 2014 |
Mov't | 2 May 2015 | 27 Dec 2014 |
Mov't | 2 May 2015 | ||||||||||
SEA LIFE | 13 | - | 13 | 18 | - | 18 | 6 | 1 | 7 | 8 | - | 8 | 45 | 1 | 46 | |||||||||
MT(1) | 2 | - | 2 | 3 | - | 3 | 5 | - | 5 | 8 | - | 8 | 18 | - | 18 | |||||||||
Dungeons | 5 | - | 5 | 3 | - | 3 | 1 | - | 1 | - | - | - | 9 | - | 9 | |||||||||
LDC(2) | 1 | - | 1 | 2 | - | 2 | 7 | - | 7 | 1 | 1 | 2 | 11 | 1 | 12 | |||||||||
Eye | 2 | - | 2 | - | - | - | - | - | - | 1 | - | 1 | 3 | - | 3 | |||||||||
Other | - | - | - | - | - | - | - | - | - | 6 | - | 6 | 6 | - | 6 | |||||||||
Midway(3) | 23 | - | 23 | 26 | - | 26 | 19 | 1 | 20 | 24 | 1 | 25 | 92 | 2 | 94 | |||||||||
LLP(4) | 1 | - | 1 | 2 | - | 2 | 2 | - | 2 | 1 | - | 1 | 6 | - | 6 | |||||||||
RTP(5) (6) | 4 | - | 4 | 3 | (1) | 2 | - | - | - | - | - | - | 7 | (1) | 6 | |||||||||
Group | 28 | - | 28 | 31 | (1) | 30 | 21 | 1 | 22 | 25 | 1 | 26 | 105 | 1 | 106 | |||||||||
Note:
(1) Madame Tussauds
(2) LEGOLAND Discovery Centre
(3) Midway Attractions Operating Group
(4) LEGOLAND Parks Operating Group
(5) Resort Theme Parks Operating Group
(6) Gardaland Water Park in Milan disposed of during the period. The financial impact on the Group is expected to be immaterial