Merlin Entertainments Unveils 2022 Financials

Merlin Entertainments, a global leader in location-based family entertainment, delivering memorable experiences to millions of guests at more than 140 global attractions, theme parks, hotels, and resorts spanning 24 countries and four continents, reports strong growth in revenues and profits for the year ending 31 December 2022.

Key Results Highlights: 

1. Visitors represents all individual visits to Merlin-owned or operated attractions
2. EBITDA excludes share-based payments
3. Growth at reported currency (£)

Merlin’s 2022 Financial Report Highlights:

• Return to pre-pandemic revenue with over 56 million guests visiting Merlin’s more than 140 international destinations.
• Divisional revenues at Midway Attractions, LEGOLAND Parks and Resort Theme Parks increased 83%, 72% and 20% respectively; due to new attractions, the return of international tourism, and individual guest spending.
• The grand opening of new parks and attractions in 2022, including LEGOLAND® Korea Resort, Jumanji-themed experiences, LEGO® Ferrari Build and Race at LEGOLAND® California, the first standalone Peppa Pig Theme Park^TM in Florida, and others, demonstrating Merlin’s dynamic relationships with global brand partners, LEGO, Sony Pictures Entertainment, Ferrari and Hasbro.

Merlin’s 2023 Financial and Development Updates:

• Merlin’s Q1 2023 revenue and visitors increased over 30% compared to Q1 2022, building on the strong recovery in 2022, primarily due to robust consumer demand, elevated revenues per visitor, the return of international tourism to gateway cities such as London, and significant recovery across Merlin’s Asia attractions.
• The beginning of 2023 was marked by an exciting runway of brand launches and new attraction openings, including the World of Jumanji at Chessington World of Adventures Resort in partnership with Sony Pictures Entertainment, supported by a park record £17 Million investment; MYTHICA at LEGOLAND® Deutschland; Gruffalo & Friends Clubhouse in Blackpool in partnership with Magic Light Pictures; and the fourth next-generation LEGO® Discovery Centre in Washington D.C.
• Today, Merlin announced intentions to open the first standalone Peppa Pig Theme Park^TM in Continental Europe, set to open at LEGOLAND Deutschland, in time for the brand’s 20^th anniversary in 2024. Alongside this, North America’s second Peppa Pig Theme Park^TM, scheduled to open in Dallas in 2024, has broken ground. Following the opening of the two parks, Merlin will operate eight Peppa Pig attractions globally, including three theme parks and five Midway Peppa Pig World of Play attractions across America, Europe, and Asia Pacific. Developed in partnership with toy and game company Hasbro, the parks are aimed at the growing pre-school entertainment market and leverage the Group’s expertise in bringing iconic brands to life.
• 2023 momentum will set the stage for a further grand opening with Merlin’s first operationally carbon-neutral accommodation, the 150 lodge Woodland Village at the LEGOLAND Windsor Resort opening in spring 2024.

Scott O’Neil, Merlin Entertainments’ Chief Executive Officer, states: 

“In 2022 Merlin returned to the pre-pandemic trajectory of growth, as we welcomed 56 million guests into our 140+ attractions in the 24 countries across the globe in which we operate.  The resilience, commitment, and talent of our 30,000+ employees shone through the recovery and continue to be the backbone of our success.  Combining Merlin’s global operational excellence and the world-class creative execution of our Merlin Magic Makers with the growing roster of iconic brands we are trusted to bring to life, including LEGO, Jumanji, Ferrari, Marvel, Peppa Pig, and Gruffalo & Friends, continues to drive our strategy. We are working ambitiously to build more meaningful businesses and increase our presence for tourists in the most important cities in the world.  

The diversification of our attractions as resorts continues to evolve, our accommodation portfolio of nearly 5,500 rooms is proving to be a sustainable advantage in extending the stay of our guests.  Although international tourism numbers are returning to pre-pandemic levels at different rates, domestic travellers seeking more connection and experiences with family and friends continue to enjoy the immersive and joyful escapism of our city attractions, resort theme parks, and LEGOLANDs through day visits, overnight, and short break stays. Accommodation revenue was up approximately 55% in 2022, as guests chose to stay in our creative offerings, including treehouses, castles, and log cabins from California to London, and we are confident our themed accommodation will be popular at our flagship LEGOLAND Resort being built in Shanghai. 

Since joining Merlin at the end of 2022, I have had the pleasure of visiting most of our attractions around the world and am increasingly excited and more confident than ever in our leadership depth, ambition, strategy and focus to continue to make more memories, bring more happiness and spread joy to people in more places than anyone else in the world.” 

Key Financial Results:

• Revenues surpassed pre-pandemic levels, despite COVID-19 restrictions in China in 2022, alongside EBITDA progression, both driven by recovery in domestic tourism and revenue management initiatives driving strong revenues per guest.
• Midway Attractions, city centre-based attractions with 1-2 hour visitor dwell time, saw a 83% revenue increase for 2022, driven by domestic visitors and the return of international travellers, notably in London, where Merlin’s attractions include the London Eye, SEA LIFE London Aquarium, Madame Tussauds and the London Dungeon.
• LEGOLAND revenues were up 72% in 2022 vs. 2021, reflecting strong trading at Merlin’s marquee LEGOLAND locations in California and Florida, the latter which included the opening of Peppa Pig Theme Park; as well as attractive accommodation revenues in these US LEGOLAND Resorts, and LEGOLAND Resorts in Europe which include LEGOLAND Windsor, LEGOLAND Billund and LEGOLAND Deutschland.
• Resort Theme Park revenues were up 20% in 2022 vs. 2021, driven by record revenues at the UK’s Alton Towers Resort and strong performance at Italy’s Gardaland Resort, reflecting customer demand, the opening of Jumanji – The Adventure at Gardaland, and strong accommodation rates.
• Robust liquidity position at the end of the year with leverage back to 2019 levels.

Expansion of Operational Excellence:

• The significant appointment of professional sports and entertainment industry leader, Scott O’Neil to the role of CEO in November 2022 galvanised the organisation and tourism industry. With a reputation as a global deal maker, culture curator, and philanthropist, O’Neil’s more than 25 years of experience leading and growing global sports and entertainment brands signals an anticipated new period of growth for Merlin, an increased emphasis on sustainability, and more. His appointment follows the retirement of Sir Nick Varney, who was CEO since 1999.
• Considerable new park and attraction openings in 2022 included LEGOLAND® Korea Resort; Merlin’s first standalone Peppa Pig Theme Park^TM in Florida; Peppa Pig World of Play in the Netherlands; the first next-generation LEGO® Discovery Centre in Brussels and Jumanji-themed experiences.
• The announcement of a global partnership with iconic car brand Ferrari to develop immersive, themed brand experiences across LEGOLAND® parks, including the opening of LEGO® Ferrari Build and Race at LEGOLAND® California in Spring 2022, and LEGOLAND® Windsor and LEGOLAND® Billund in May 2023, put the organisation into fifth gear.
• To amplify existing Midway clusters, Merlin completed the acquisition of:
  • • Cadbury World: The attraction based around the UK’s favourite chocolate brand where visitors can learn all about the history, magic and making of Cadbury chocolate, and one of the West Midlands’ most popular attractions with 600,000+ people visiting every year.
  • The COEX Aquarium: Showcasing more than 40,000 sea creatures from 650 different species, Seoul’s COEX Aquarium is recognized as one of the largest aquariums in South Korea.
  • This Is Holland, The Ultimate 5D Flight Experience: Merlin obtained operational control over Amsterdam’s preeminent 5D flying experience, marking the company’s first flying theatre ride in mainland Europe.

• All three U.S.-based LEGOLAND® parks have been accredited as Certified Autism Centers by The International Board of Credentialing and Continuing Education Standards; applications of which include comprehensive on-location and online sensory stimulation planning guides, staff sensitivity and awareness training, low sensitivity areas, and more.