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Merlin Entertainments plc
from Kirkbi Annual Report 2018
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 2018, Merlin operated more than 120 attractions, 18 hotels and 6 holiday villages 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. Merlin Entertainments delivers memorable experiences to 67 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 20 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 29.6% interest.
HIGHLIGHTS FOR 2018
Merlin Entertainments saw a year of steady progress in 2018, reflecting a number of important strategic developments and continued organic growth.
Total number of visitors grew by 1.4% to 67 million and revenue grew organic by 5.2% in 2018 (52 weeks basis). Profit for the year increased by 10% to GBP 230 million due to incremental revenue, reduced finance costs and lower taxation offset by increased depreciation.
The strategy to expand the LEGOLAND parks footprint continued. Construction of the LEGOLAND New York resort began, LEGOLAND park number nine, with a planned opening in 2020. Furthermore, an agreement was reached with the local province for the funding of LEGOLAND Korea with planned opening in 2022.
The LEGOLAND parks revenue increased by 6.4%, driven by the opening of 644 new accommodation rooms at LEGOLAND Germany, LEGOLAND Japan and LEGOLAND California. Midway attractions saw revenue growth of 1.1% driven by continued roll out of new attractions and Resort Theme Parks grew with 9.1% due to successful new product offerings.
The number of LEGOLAND Discovery Centres increased during the year by two new Centres to a total number of 20 LEGOLAND Discovery Centres. The new openings were in Birmingham (UK) and Columbus (US).
BOARD OF DIRECTORS
Sir John Sunderland, Chairman Nick Varney, CEO Anne-Francoise Nesmes, CFO Yun (Rachel) Chiang Andrew Fisher (Joined in July 2018) Andrew Fisher Charles Gurassa Fru Hazlitt Ken Hydon (Retired in April 2018) Trudy Rautio Søren Thorup Sørensen
LEGOLAND® Billund is the very first LEGOLAND park in the world. In 2018, the park turned 50 years and celebrated its 50 years anniversary with a party as well as a new rollercoaster and an upgrade of the park.
Photo: Merlin Entertainments plc
5 YEARS’ PERFORMANCE
(m GBP)
2000
1500
1000
500
0 2014 2015 2016 2017 2018
Revenue EBITDA
FINANCIAL HIGHLIGHTS
(m GBP)
2018 2017
Revenue Underlying EBITDA Profit for the year 1,688 1,594 490 474 230 209
Equity 1,739 1,563
Cash flow from operating activities
464 413 Visitors (millions) 67 66 Ownership of Merlin Entertainments plc 29.6 % 29.7 %
