Merlin Entertainments like-for-likes slow in Q3
Legoland and Sea Life centres owner Merlin Entertainments suffered a slowdown in trading in the recent months in comparison with a strong summer last year.
Management said profit growth remained consistent with internal expectations and anticipates full year margins at the earnings before interest, tax, depreciation and amortisation level to be “similar to last year's levels”.
Like-for-like revenue growth stood at 6.7% after the first 36 months of the year, slowing from the 8.1% growth seen in the first six months.
The global roll-out of Merlin's 'Midway' brands, including Madame Tussauds, Sea Life and the Dungeons, lifted total growth at constant currency to 9.3%, though this was reduced to 3.8% at reporting level due to the strength of sterling.
Merlin, now the second largest theme park owner in the world after Disney, generated like-for-like improvements across its three businesses, with Midway up 3.2%, Legoland parks 13.8 and resort theme parks, including Alton Towers, Thorpe Park and Gardaland in Italy, up 4.2% against very strong comparatives.
Midway was hit by the civil unrest in Thailand, but this was more than offset by the strong performances elsewhere, with the relaunch of Sea Life in Busan, South Korea and 'Pirate Beach' splash pad at Legoland Discovery in Dallas.
Legoland parks saw a tapering of the breakneck growth rate from the first half as the impact of 'The Lego Movie' tailed off, though each park delivered growth despite the challenging comparatives.
Net debt was reduced significantly since the end of June thanks to strong seasonal cash flows, with £65m of term debt repaid on 5 September and a maiden interim dividend of 2.0p per share to be paid on 25 September.