Return of tourists helps Legoland owner Merlin turn profitable again

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The return of international tourism has pushed Legoland owner Merlin Entertainments into profit again, returning Europe’s biggest theme park operator to its pre-pandemic growth path.

A total of 56.4 million visitors visited Merlin Park, Hotel or Holiday Village during the past year, up from 35.2 million visitors in 2021. The increase in viewership saw the group’s revenue rise by 59 per cent to over £2 billion.

As a result, the group, which operates attractions in 25 countries, returned to profit after suffering losses during the pandemic as travel restrictions hampered business. Last year’s pre-tax profit was £136mn, compared with a loss of £94mn in 2021.

The comeback continued in the first quarter of this year, with strong demand in London, where Marilyn London Eye and Madame Tussauds run, and increased travel across Asia, driving revenue and visitor numbers up 30 percent compared to the same period. has exceeded. 2022.

Three Legoland parks are under construction in Merlin, with the Shanghai park scheduled to open in 2025. There are also plans to open two Peppa Pig parks next year. Last year, the group opened a Legoland in South Korea and the first standalone Peppa Pig theme park in the US state of Florida.

Midway Attractions, which includes the Madame Tussauds, Sea Life and Dungeon brands, was the group’s fastest-growing division, with revenue expected to grow 83 per cent before 2021. Revenue at Legoland parks was up 72 percent compared to 2021.

Merlin’s chief executive Scott O’Neill told the Financial Times that Merlin’s brand partnership paid off during a period of high inflation and economic downturn.

“Guests are choosing more carefully where to spend their hard-earned money, and we’re seeing a flight to quality as consumers turn their attention to big brands like Lego, Peppa Pig and Ferrari,” O’Neill said. ”

He added that “although international tourism numbers are returning to pre-pandemic levels at varying rates”, domestic day trip travelers remain a significant part of Merlin’s target market.

Merlin was taken private in 2019 after six years as a listed company on the London Stock Exchange in one of the largest European private equity-backed buyouts in recent history.

Kirkby, an investment vehicle run by the Lego founding family, has teamed up with private equity group Blackstone and Canadian pension fund CPPIB on a £6 billion acquisition.

Private equity firms have invested billions of dollars in holiday park and attraction operators in recent years. Blackstone to buy Haven holiday park operator Born Leisure in 2021 for around £3bn. This year, Brookfield launched an auction process to sell UK holiday operator Center Parks for between £4bn and £5bn, with several private equity groups showing interest.