2nd Aug 2018 09:55
LONDON (Alliance News) - Merlin Entertainments PLC said Thursday that revenue in the first half of the year grew as it prepares for its peak season.
For the half-year to June 30, the FTSE 250-listed visitor attraction operator posted revenue up 3.5% to GBP709 million from GBP685 million a year ago.
Visitors increased slightly to 30.0 million from 29.7 million year-on-year.
Meanwhile, the company's pretax profit dropped 14% to GBP43 million from GBP50 million a year ago, as operating profit took a GBP10 million hit.
Operating profit dropped to GBP63 million from GBP73 million year-on-year, mainly on adverse foreign exchange movements and a higher depreciation charge, the company said.
Merlin described 2018 as a year of "transition" with the London tourist market hurt by "the effect of the terrorist atrocities which took place throughout 2017".
"Trading in London remains suppressed, and it is too early to judge if there are definitive signs of a recovery," the company said.
The company, which operated LEGOLAND Parks, said performance was hampered by the absence of a LEGO movie during the half-year, although it expects the launch of "The LEGO Movie 2" in 2019 to "support future performance".
Merlin said that the first half of the year generally represents a "seasonally quiet period", with 70% of annual earnings before interest, taxes, depreciation and amortisation generated in the second half.
"Having so far traded in line with expectations we are now entering our peak season where we generate the majority of our annual profit. With many exciting new initiatives and launches to come in the future, we remain confident in our long-term prospects," Chief Executive Officer Nick Varney said.
The company increased its interim dividend to 2.5 pence per share from 2.4p paid to shareholders last year.
Merlin Entertainments shares were trading down 1.2% at 385.70p each.
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