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Merlin Entertainments plc
from Kirkbi Annual Report 2017
by stibo
ABOUT MERLIN ENTERTAINMENTS PLC
Merlin Entertainments plc is Europe’s leading and the world’s second-largest visitor attraction operator. At the end of December 2017, Merlin operated 124 attractions in 25 countries across four continents. The aim for Merlin Entertainments is to create a high growth, high return, family entertainment company based on strong brands and a global portfolio that is naturally balanced against the impact of external factors. It delivers memorable experiences to over 66 million visitors worldwide.
Merlin Entertainments operates through three operating groups: LEGOLAND® Parks, Resort Theme Parks and Midway Attractions, using a number of international brands including SEA LIFE, Madame Tussauds, the Dungeons, LEGOLAND Discovery Centres and The Eye.
Midway Attractions are predominantly indoor attractions located in city centres or resorts providing visits of shorter duration. Resort Theme Parks are standalone national brands generally aimed at families, teenagers and young adults.
The eight LEGOLAND resorts across Europe, USA and Asia offer a unique LEGO® themed experience for families with children often including highly themed accommodation and based on interactivity, imagination and family fun. Also in the 18 LEGOLAND Discovery Centres across Europe, USA and Asia, families with young children are offered an indoor, interactive and immersive experience.
Merlin Entertainments plc is a listed company on the London Stock Exchange.
KIRKBI is a significant shareholder of Merlin Entertainments plc with a 29.7 % interest.
HIGHLIGHTS FOR 2017
Merlin Entertainments’ results represent a solid performance in a challenging market environment, where a combination of ongoing security concerns impacted Merlin’s city centre tourist destinations in particular together with extreme weather at peak trading periods in Northern Europe, Italy and Florida.
Total number of visitors grew by 3.5 % to 66 million and revenue grew by 11.6 % in 2017 (52 weeks’ basis). Profit for the year decreased by 1.0% to GBP 209 million due to increases in depreciation and amortisation from roll out of new attractions.
For the LEGOLAND parks revenue increased by 18.2 %, driven by the opening of LEGOLAND Japan, which is LEGOLAND park number eight in the world. A total of 307 rooms were opened in LEGOLAND parks during 2017 from expansions in Billund, Florida and Windsor. Further 252 rooms are expected in LEGOLAND Japan during 2018. During 2017 plans for LEGOLAND New York were announced, targeted to open in 2020.
The number of LEGOLAND Discovery Centres increased during the year by 2 new Centres to a total number of 18 LEGOLAND Discovery Centres. The new openings were in Melbourne and Philadelphia.
BOARD OF DIRECTORS
Sir John Sunderland, Chairman Nick Varney, CEO Anne-Francoise Nesmes, CFO Yun (Rachel) Chiang Charles Gurassa Fru Hazlitt Ken Hydon Trudy Rautio Søren Thorup Sørensen
Photo: Merlin Entertainments plc, LEGOLAND Entrance Japan
5 YEARS’ PERFORMANCE
(m GBP)
2000
1500
1000
500
0 2013 2014 2015 2016 2017
FINANCIAL HIGHLIGHTS
(m GBP)
2017 2016
Revenue Underlying EBITDA Profit for the year 1,594 1,457 474 451 209 211
Equity 1,563 1,424
Cash flow from operating activities
413 433 Visitors (millions) 66 65.1 Ownership of Merlin Entertainments plc 29.7 % 29.8 %
