Merlin Entertainments has announced its performance results for 26 weeks ending June 29, 2019. Merlin’s CEO said that performance has been “broadly in line with our expectations.”
During the period, organic revenue grew by 6.5%, driven by like-for-like growth, a diversified portfolio and new openings.
The interim results report shows that Midway and Resort Theme Parks (RTP) are “returning to better levels of like-for-like growth, with improved cash generation.”
The opening of eight new Midway attractions, including Peppa Pig World of Play, has contributed positively to the growth in revenue.
Merlin Entertainments’ new accommodation also influenced the growth in organic revenue.
“With eight new Midway attractions opened in the period, 372 new accommodation rooms, and the ongoing development of new Legoland parks, we continue to build on our position as a unique, multi-format international operator of strongly branded and IP-led location based entertainment,” said Nick Varney, Merlin CEO.
On a less positive note, Merlin referred to sales at Legoland theme parks as “disappointing,” with like-for-like sales for the first half of 2019 falling by 0.7%.
The disappointing trading at Legoland resorts has been pinned on the result of the film, Lego Movie 2, which has made $191.3 million at the box office, significantly less than the first Lego movie, which $469.1 million.
As Varney commented:
“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’.”