1st Aug 2019 11:17
(Alliance News) - Merlin Entertainments PLC on Thursday said its profit dropped by a quarter in the first half of 2019, whilst new site openings boosted revenue growth.
The attractions, hotels and holiday villages operator said its profit declined in the 26 weeks to the end of June to GBP32 million from GBP43 million reported a year earlier, due to a 7.2% increase in staff expenses to GBP223 million and an 18% rise in other operating costs to GBP150 million.
Meanwhile, Merlin said its revenue rose 8.1% to GBP763 million in the first half from GBP706 million reported last year, as it attracted 3.0% more visitors to its sites, totalling 30.8 million in the period.
The FTSE 250-listed company's organic revenue grew by 6.5%, driven by like-for-like revenue growth of 2.3% as Midway Attractions and Resort Theme Parks returned to growth, and roll-out of new attractions and accommodation.
Despite that, Merlin did not propose an interim dividend, having paid 2.5 pence a share dividend in the first half of 2018. The move follows recently announced GBP4.77 billion takeover offer from a group comprising the investment vehicle of Lego's founding family, US private equity firm Blackstone and a Canadian pension fund.
"Group performance year to date has been broadly in line with our expectations in the seasonally quieter first half of the year," said Chief Executive Nick Varney.
"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," added Varney.
Merlin shares were trading 0.2% higher in London at 452.50p each on Thursday.
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