26th Feb 2015 08:05
LONDON (Alliance News) - Attractions and theme park operator Merlin Entertainments PLC Thursday delivered a profit for 2014 right at the top end of analyst expectations, buoyed by strong growth in revenue, amid the 'The LEGO Movie' craze over the summer, although the company said that while its confident and poised for further growth, it faces tough comparatives in 2015.
Merlin, which runs LEGOLAND parks, Madame Tussauds wax museums, SEA LIFE aquariums and the London Eye, reported earnings before interest, taxes, depreciation and amortisation of GBP411 million for 2014, representing growth of 5.3% at actual exchange rates, and right at the top end of its earnings guidance which it reiterated earlier this month. Its pretax profit for the year was GBP249 million, up from GBP186 million.
Profits were driven by a 4.8% increase in revenue to GBP1.25 billion, up from GBP1.19 billion 2013, as the number of visitors through its theme park and attraction doors rose 4.9%.
Analysts were expecting EBITDA growth of 5.1% to GBP410 million, a 4.8% year-on-year increase in operating profit to GBP304 million, and 4.5% growth in revenue to GBP1.25 billion, according to the consensus provided by the company.
Merlin said the star performer during 2014 was its LEGOLAND parks, where like-for-like revenue growth reached over 13%, riding on the back of successful promotional activity around the release of 'The LEGO Movie' in the spring. The success of 'The LEGO Movie' delivered a flood of visitors to LEGOLAND gates last summer.
"2015 is expected to be another year of growth for Merlin, with positive underlying trading and a strong new business development pipeline. Like-for-like growth will however be tempered by the tough comparatives created following the company's strong performance in 2014, particularly in the first half of the year" the company said.
Merlin recommended a final dividend of 4.2 pence per share, taking its full year dividend for 2014 to 6.2 pence per share.
"Whilst trading remains seasonally quiet at this point of the year, the attractions already open are performing in line with expectations, and planned investments and new developments are on track," it added.
At the open Thursday, Merlin shares were up 1.3% at 425.60 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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