INSPIRING TOMORROW'S MEMORIES - Merlin Entertainments
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INSPIRING
TOMORROW’S
MEMORIES
MERLIN ENTERTAINMENTS PLC
ANNUAL REPORT
AND ACCOUNTS 2018
AT A G L A N C E
GLOBAL OPPORTUNITIES Geography(1) Tourist/domestic(2) Weather exposure(1)
AND EXPANSION UK: 31% DOMESTIC: 72% OUTDOOR: 62%
CONTINENTAL TOURIST: 28% INDOOR: 38%
EUROPE: 25%
NORTH
AMERICA: 27%
ASIA PACIFIC: 17%
A BAL ANCED,
GLOBAL PORTFOLIO
(1) Based on 2018 revenue
(2) Based on a sample of visitors answering the question ‘What is your home country?’
S INCE OU R
FORMATION
IN 1999, THE 27
PU RSU IT OF
OU R STR ATEGY HAS
RESU LTED IN A PORTFOLIO
OF AS SE TS DIVERS IFIED BY
GEOGR APHY, BY FORMAT,
AND BY CU STOMER T YPE .
• Operating across 25 countries and 4 continents, • Our portfolio of Midway attractions and theme
we now generate over 70% of our profits from parks means that we are relatively balanced against
outside the UK. weather fluctuations, with approximately 60% of
• Whilst Merlin is not immune to external, revenue coming from outdoor attractions.
geo-political shocks, the breadth and scale • With over two-thirds of our visitors being domestic,
of the portfolio helps limit their impact. we are not reliant upon the ‘fly-in’ markets.
OUR BR ANDS
M I D W AY AT T R A C T I O N S T H E M E PA R K S
Amazing Discoveries Famous Fun Playful Learning Continental Europe: 1 United Kingdom: 1 Asia Pacific: 2 Playful Learning Fantastical Escapism Wild Adventure Big Fantasy Adventure
United Kingdom: 11 United Kingdom: 2 United Kingdom: 2 Asia Pacific: 1 United Kingdom: 1 United Kingdom United Kingdom Italy
Continental Europe: 18 Continental Europe: 4 Continental Europe: 3 Continental Europe: 2
North America: 8 North America: 7 North America: 11 North America: 2
Asia Pacific: 9 Asia Pacific: 10 Asia Pacific: 4 Asia Pacific: 3
Asia Pacific: 1 Asia Pacific: 1 Asia Pacific: 2
Key
Scary Fun Eye Opening Extraordinary Insane Fun Ultimate Castle
United Kingdom: 5 United Kingdom: 2 Adventure United Kingdom United Kingdom Existing Merlin attractions
Continental Europe: 3 Asia Pacific: 1 Germany
North America: 1 Existing UK attractions
Asia Pacific: 1 2018 new attractions
Asia Pacific: 1 United Kingdom: 1
M E R L I N E N T E RTA I N M E N T S P LC 01
CONTENTS OUR PURPOSE HIGHLIGHTS AND KPIs
DELIVERING MEMOR AB LE
67.0m
Company Overview 02 How we report our results
Chairman’s Statement 04 Details on the period under review and performance measures used are set out in the Financial and
Operating Review on page 33. We use certain ‘alternative performance measures’ in our reporting in
Strategic Report E XPERIENCES TO OU R GU ESTS order to present our trading performance in the most helpful and meaningful way; that section explains
Market Overview 06 the measures used and why we use them.
Business Model 08 In a busy and increasingly fragmented world, time is at a premium. V I S ITO R S +1.4%
Chief Executive’s Report 10 Especially time together with friends and family. Executive Directors’ remuneration is linked to certain KPIs, as indicated by the following symbol .
Our Six Strategic Growth Drivers 14 More details on Directors’ remuneration are set out in the Directors’ Remuneration Report on
Case Studies 16 At its heart, Merlin is about creating truly memorable experiences pages 74 to 89.
Q&A – Operating Groups 22 from these moments together. Memories to be shared at the school
Q&A – MMM and New Openings 24 gates, on social media or on the journey home, but remembered forever. Terms used throughout this document are defined in the Glossary on pages 156 to 157.
Financial and Operating Review 26 2018 67.0
Principal Risks 34
People 42 2017 66.0
Responsible Business 48
2016 63.8
Governance
Corporate Governance Statement 58
£1,688m £327m £323m
Board of Directors 60
Corporate Governance Report 62
Nomination Committee Report 66
Health, Safety and Security
Committee Report 68
Audit Committee Report 70 REVENUE U N D E R LY I N G TOTA L O PE R ATI N G
Directors’ Remuneration Report 74
Directors’ Report 90
Reported growth +5.9% O PE R ATI N G PRO F IT PRO F IT
Directors’ Responsibilities Statement 92 Organic growth +5.2% Reported growth +1.3%
Independent Auditor’s Report 93 Like for like growth +1.8% Organic growth +3.4%
Financial statements
Consolidated income statement
Consolidated statement of
comprehensive income
Consolidated statement of financial position
100
101
102
2018
2017
2016
1,688
1,594
1,428
2018
2017
2016 302
327
323 £285m
PRO F IT B E F O R E TA X
Consolidated statement of changes in equity 103
Consolidated statement of cash flows 104
22.5p 22.9p 8.9%
Notes to the accounts 105
Merlin Entertainments plc
Company financial statements 148
Notes to the Company financial statements 150
Other information
Financial record 155 BASIC EPS A D J U STE D E P S RETURN ON
Glossary 156 +9.5% +11.7% C A PITA L E M PLOY E D
Other financial information 158
Shareholder information 159
2018 22.5 2018 22.9 2018 8.9%
2017 20.5 2017 20.5 2017 9.1%
2016 19.5 2016 19.5 2016 9.6%
95%
GUEST SATISFACTION
86%
E M PLOY E E
0.03
H E A LTH A N D SA F E T Y
Based on guest satisfaction surveys. Our target is a
score over 90%.
E N G AG E M E NT The Medical Treatment Case (MTC) rate
captures the rate of guest injuries requiring
Based on our annual employee survey (see
external medical treatment relative to 10,000
page 42). Our target is a score over 80%.
guest visitations. The reduction in the rate in
2018 is therefore a positive outcome.
2018 95% 2018 86% 2018 0.03
2017 96% 2017 86% 2017 0.04
2016 94% 2016 89% 2016 0.06
INFORMATION ONLINE
Visit our website:
www.merlinentertainments.biz
02 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 03
CO M PA N Y OV E RV I E W
A YEAR OF MEMOR ABLE 2018
JULY
EXPERIENCES LEGOLAND Discovery Centre Birmingham opens.
‘LEGO City: Deep Sea Adventure’ opens at
LEGOLAND California.
OCTOBER
The Bear Grylls
Adventure in Birmingham,
UK, Peppa Pig World
of Play in Shanghai (see
case study on pages 20
MERLIN ENTERTAINMENTS I S A to 21) and the Shanghai
Dungeon open.
GLOBAL LE ADER IN LOC ATION
BASED, FAMILY ENTERTAINMENT.
As Europe’s number one and the world’s second-largest JUNE
visitor attraction operator, Merlin now operates over 120 World’s first sanctuary for beluga whales announced.
attractions, 18 hotels and 6 holiday villages in 25 countries and
across 4 continents.
In 2018 the Company delivered memorable experiences to 67 million visitors
worldwide, through its iconic global and local brands and the commitment and
passion of its c.28,000 employees (peak season).
We operate two distinct types of visitor attraction;
• Our Midway Attractions are high quality, branded, predominantly indoor
attractions with a typical one to two hour dwell time located in city centres,
shopping malls or resorts.
• Our Theme Parks are larger multi-day outdoor destination venues,
incorporating on-site themed accommodation. These are organised into
two Operating Groups, based on the brands – LEGOLAND Parks and
Resort Theme Parks.
SEPTEMBER
Little BIG City Beijing and LEGOLAND Discovery Centre
APRIL Columbus open.
252 room hotel and SEA LIFE Merlin Magic Wand celebrates tenth anniversary.
Centre open at LEGOLAND
Japan, developing the park into
a resort.
250 room LEGOLAND
California Castle Hotel opens,
doubling the capacity of
on-site accommodation. MIDWAY AT TR ACTIONS LEGOL AND PARKS RESORT THEME PARKS
We have high quality, chainable brands and are the only company Located worldwide, LEGOLAND Parks are aimed at families with Resort Theme Parks are national brands aimed at families, teenagers
to successfully operate the Midway model on a global scale. We are younger children and have LEGO as the central theme. Highly and young adults, with themed accommodation at all locations.
increasingly partnering with third party Intellectual Property owners themed accommodation is central to our strategy to develop the They have high brand and customer awareness in their local
to create new brands which complement the portfolio and broaden customer offering. Merlin holds the global, exclusive rights to the markets and include the leading theme parks in the UK, Italy and
our appeal across all key target demographics. LEGOLAND brand. Northern Germany.
40.4m £677m 15.6m £637m 11.0m £367m
GLOBAL BRANDS LOCATIONS BRANDS
MARCH SEA LIFE Billund, Denmark Alton Towers Resort,
‘Wicker Man’ roller coaster opens at Madame Tussauds California, USA UK
Alton Towers Resort (see case study LEGOLAND Discovery Dubai, UAE Chessington World of
on pages 16 to 17). Visitors Revenue Visitors Revenue Visitors Revenue Adventures Resort, UK
Centre Florida, USA
142 room Pirate Island Hotel The Dungeons Gardaland Resort, Italy
Günzburg, Germany
opens at LEGOLAND Deutschland The Eye Heide Park Resort,
(see case study on pages 18 to 19). Johor, Malaysia
Germany
Nagoya, Japan
Opening of ‘Peppa Pig Lands’ at THORPE PARK Resort,
Gardaland and Heide Park Resorts. Windsor, UK UK
Warwick Castle, UK
2017 Find out more on page 23 Find out more on page 23 Find out more on page 22
04 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 05
C H A I R M A N ’ S S TAT E M E N T
STR ATEGIC PROGRESS AND
ORGANIC GROW TH
MERLIN ENTERTAINMENTS Trading and strategy
After several challenging years, 2018 saw a number
Governance and the Board
The recent externally facilitated evaluation exercise
worldwide as part of a number of initiatives to
remove single-use plastics from the business.
CONTIN U ES TO MAKE of important strategic developments and a year of confirmed that the Board and its Committees each
continued steady organic growth. remain effective. No major concerns were Our partner charity, the SEA LIFE Trust, continues
STR ATEGIC PROGRES S AND identified and the Board was described as strong, with activities to protect marine wildlife. Supported
RE PORTS CONTIN U ED Our strategy to expand the LEGOLAND parks with a good mix of skills, experience and culture, by the Group, in 2018 it announced a world first
footprint continued. Construction began in the first with a collegiate, supportive and collaborative when construction started on a beluga whale
ORGANIC GROW TH . half of the year on the LEGOLAND New York approach. The review also noted the appropriate sanctuary in Iceland. This will initially provide a new
Resort, which is progressing towards the planned level of constructive challenge during meetings. home for two beluga whales currently housed in
2020 opening, while at the end of the year we one of our aquariums in China and has the
reached agreement with the local province for the Ken Hydon stood down as a Non-executive potential to offer a more natural habitat for other
funding of LEGOLAND Korea. We continue to Director and Chairman of the Audit Committee in captive beluga whales in the coming years. During
believe there is the scope for 20 LEGOLAND the year and on behalf of the Board, I would like to the year SEA LIFE Conservation, Welfare and
parks worldwide and continue a number of thank Ken for the significant contribution he has Engagement (CWE) was formed to continually
progressive discussions about new partnership made to Merlin over his years of service. improve standards in animal welfare and advocacy
agreements in the key China marketplace. for marine conservation.
INVESTMENT CASE Merlin’s unique themed accommodation offering
Andrew Fisher OBE was appointed to the Board as
a Non-executive Director in July 2018. Having led Merlin’s Magic Wand, our partner children’s charity,
continues to drive growth across our theme park the successful growth of a number of technology- celebrated its tenth birthday in 2018. The charity
1. A
ttractive markets, estate. We are therefore pleased to have a strong focused enterprises over the past 20 years, continues to deliver magical experiences around
with underlying growth medium term pipeline for a variety of different Andrew will add his experience in digital consumer the world to children who are facing challenges of
characteristics and accommodation formats at multiple locations and technology markets to the Board’s already serious illness, disability or adversity, with over
favourable dynamics across both theme park Operating Groups, wide range of skills. Andrew has also joined the 600,000 attraction visits taking place since the
which will add to the 4,000 plus rooms in the Audit Committee which is now chaired by Trudy charity began. The charity also ‘takes the magic’ to
current portfolio. Rautio, who brings a wealth of relevant financial local children’s organisations with community
2. D
iversified portfolio of world experience to the role. outreach activities, and has now installed 46
class brands and assets In the Midway Attractions Operating Group, 2018 ‘Magic Spaces’ in children’s homes and hospitals.
saw the pilot openings of the new Intellectual Further details on Merlin’s Corporate Governance As active members of the ‘Members of Business
3. M
ultiple levers of growth Property (IP) based attraction formats, ‘Peppa Pig arrangements and activities are set out in the Disability Forum’ we also work to further improve
World of Play’ and ‘The Bear Grylls Adventure’, Corporate Governance Statement and Report on experiences for guests with accessibility challenges.
through our Six Strategic
aimed at the pre-school and adventure seeker pages 58 to 65.
Growth Drivers (see pages markets respectively. While these attractions are Further details, together with our approach to
14 to 15) still in their infancy, we are encouraged as they Dividends non-financial reporting, are set out on pages
continue to broaden the Group’s appeal within At the Annual General Meeting in May, the Board 48 to 57.
4. S
trict financial discipline and different markets and geographies. Furthermore, will be recommending that we pay a final dividend
these investments reflect our ever-growing of 5.5 pence per share. Taken together with the Our people
investment criteria
relationships with third party IP holders who seek interim dividend of 2.5 pence per share paid last I am, as always, extremely grateful to Merlin’s
to leverage their content through location September, this will equate to a full year dividend of management team and our many thousands of
5. C
ommitted to Being a Force based entertainment. 8.0 pence per share, up 8.1% on 2017. employees across the world who continue to drive
for Good the Group’s strategic progress and are the
With respect to 2018 trading, Midway Attractions Responsibility and sustainability foundation of our relations with our guests,
saw the key London market starting to recover Merlin is committed to responsible corporate communities and other stakeholders.
from the impacts of terrorism that had so affected citizenship. This commitment informs our
2017 performance. In LEGOLAND Parks, a governance structures and the operation of our Looking forward
broadly flat performance in the existing estate was businesses, notably in the area of health and safety With Merlin’s core strengths and assets, together
augmented by the expansion of the LEGOLAND where a constant focus on keeping our guests, with the backdrop of evolving, but attractive,
Japan Resort by adding a hotel and SEA LIFE employees and other visitors safe and secure is our market fundamentals, we continue to see
Centre to the park that had opened in 2017, with overriding priority. significant global opportunity for the Company in
themed accommodation expansion in other parks 2019 and beyond.
also driving organic growth. Finally, Resort Theme Our commitment to reducing our environmental
Parks reported strong organic growth driven by impact continues with a particular focus in 2018 on Sir John Sunderland
the major resorts at Alton Towers and Gardaland, plastic pollution. The Group partnered with Chairman
reflecting ongoing product investment and Coca-Cola Great Britain in an innovative initiative 27 February 2019
favourable weather. The trading performance to encourage more recycling and towards the end
is reviewed in further detail within this of the year the Group announced the phasing out
Annual Report. of plastic straws within all of its owned attractions
06 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 07
M A R K E T OV E RV I E W
STR ATEGIC REPORT
AT TR ACTIVE MARKET
OPPORTUNIT Y STRUCTUR AL TRENDS
WITHIN THIS L ARGE AND GROWING
MARKET MERLIN BENEFITS FROM
GOVERNANCE
THREE STRUCTUR AL TRENDS .
MERLIN OPER ATES IN A
FU NDAMENTALLY AT TR ACTIVE
MARKE T, ENJOYING U NDERLYING
1.3bn
TOURIST ARRIVALS GLOBALLY
1.3 billion international
tourist arrivals
INTERNATIONAL TOURIST
ARRIVALS (millions)
Growing demand for a truly
immersive, IP-led experience
(Source – UNW TO, Citi Research) • Of which over half are holiday, Merlin has multiple global, or near-global,
GROW TH CHAR ACTERI STICS 2017
1,323
leisure or recreation. Merlin benefits IP agreements. These range in scale from
AND FAVOU R AB LE DYNAMICS .
6.3%
through our presence in Gateway cities. relationships at a local level for specific
attractions, through global, multiproduct
FINANCIAL STATEMENTS
• Growing wealth in emerging markets relationships with some exclusivity, all the
USA ANNUAL GROWTH IN EXPERIENCE drives growth in travel, both way up to our core global, multiproduct
Growth in global leisure and tourism RELATED SERVICES 2014-2016 domestically and internationally. and exclusive relationship with LEGO.
spend continues to be fuelled by increasing (Source – McKinsey & Company / US Bureau
of Economic Analysis) 911 Our standalone, IP-led attractions include
2007 LEGOLAND (parks and Discovery
disposable incomes in both developed and Centres), Peppa Pig World of Play,
emerging economies, and ever greater value
being placed upon time together with friends
3 in 4
AMERICANS PRIORITISE
The Bear Grylls Adventure and
DreamWorks Tours – Shrek’s Adventure!.
OTHER INFORMATION
and family. EXPERIENCES OVER PRODUCTS
(Source – Expedia and Center for
Generational Kinetics)
$3.2tn
GLOBAL LEISURE AND TRAVEL
Growth in short breaks
and demand for themed
accommodation
UK SHORT BREAK
HOLIDAYS (millions)
MARKET 2025
2016
• A
side from the benefit from
AT TR ACTIVE High barriers
to entry USA & China
short breaks enjoyed in Merlin’s
Gateway cities, 21% of Merlin’s theme 7.4
MARKET DRIVE THE GROWTH
park revenue was generated from
accommodation in 2018.
FUNDAMENTALS Obtaining relevant planning TRAVEL AND LEISURE SPEND IN
$ BILLIONS – 2015 AND 2025 FORECAST
ASIDE FROM THE permissions and capital investment • Between 1996 and 2016, growth in UK
2.8
(Source – Euromonitor International Passpor t/
for major theme park projects is short breaks was twice that of longer
GROW TH invariably highly challenging.
McKinsey & Company, CityScope Database)
one/two week holidays (Source – ONS).
1996
CHAR ACTERISTICS ,
USA
THE MARKET FOR Fragmented
LOCATION BASED marketplace 2025
ENTERTAINMENT
OFFERS AT TR ACTIVE
The market for visitor attractions is
relatively fragmented. This provides
944 B R AND PORTFOLIO CITY CENTRE TEENAGERS AND
FUNDAMENTALS . the opportunity for acquisitions and FAMILIES TOURISTS YOUNG ADULTS
partnerships, with many non-natural THROUGH OUR DIVERSE
owners of assets.
629 PORTFOLIO, WE ARE LEGOLAND parks Madame Tussauds THORPE PARK
2015 SEA LIFE Centres The Dungeons The Dungeons
ABLE TO CAP TURE ALL Alton Towers The Eye Brand Alton Towers
Digitalisation OF THESE AT TR ACTIVE Shrek’s Adventure! SEA LIFE Centres Heide Park
DYNAMICS ACROSS Gardaland Little BIG City Gardaland
Unlike many consumer-facing LEGOLAND Discovery
businesses, Merlin sees limited CHINA DEMOGR APHICS , Centres
threat, but significant opportunity, INCRE ASINGLY FOCUSED Warwick Castle
from the increasing importance of Heide Park
digital and technology which allow
2025
ON NEW BR ANDS . Chessington World of
for enhanced guest experiences. 392 Adventures
ADVENTURE/
2015
200 PRE-SCHOOL
FAMILIES
EXPERIENCE
SEEKING
Peppa Pig World of Play The Bear Grylls
Adventure
08 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 09
BUSINESS MODEL
STR ATEGIC REPORT
DELIVERING VALUE FOR ALL
OUR STAKEHOLDERS
GOVERNANCE
FOUNDATION S AND TOGETHER OUR INDIVIDUAL VALUE CRE ATED
COMPETENC IES BUSINESSES CRE ATE AN FOR STAKEHOLDERS
E XPANDING , DIVERSE PORTFOLIO
BR ANDS AND ASSETS
95%
• Synergistic relationship with LEGO (the world’s top
toy brand) OUR OPER ATING GROUPS PORTFOLIO SYNERGIES CUSTOMERS
• Chainable and global Midway attraction brands MIDWAY • Guest satisfaction constantly
monitored at each attraction
• Resort Theme Parks attractions are typically number one
AT TR ACTION S • Established investment cycles drive
FINANCIAL STATEMENTS
or two in their respective markets to drive improvement, with a
growth at each attraction, funded by continued focus on ‘Top Box’, GUEST
Find out more on page 23
groupwide operating free cash flow ‘Net Promoter’ scores and SATISFACTION
social media engagement
IP PARTNERSHIPS • Increasing scale and global reach
86%
• Global, exclusive rights to the LEGOLAND IP improve opportunities for worldwide EMPLOYEES
• Established and growing global, regional and local IP
partnerships, for example with Star Wars, CBeebies, LEGOL AND IP partnerships • Around 28,000 employees
Bear Grylls and Peppa Pig at peak season committed
PARKS • Synergy benefits go across Operating
OTHER INFORMATION
to delivering memorable
Find out more on page 23 Groups in key markets where we can experiences EMPLOYEE
sell annual passes and enhance Find out more on pages ENGAGEMENT
UNIQUE PORTFOLIO OF 42 to 47
marketing opportunities
SKILLS
• Opportunities for multiple attractions
>100k
• Experienced research teams identify potential sites for new
attractions and negotiate with local landlords, developers
RESORT at one location via city centre COMMUNITIES
and civic bodies
• Unique creative teams develop content for all attractions THEME PARKS ‘clustering’ and ‘second gates’ at theme • Merlin’s attractions operate
responsibly at the heart of
and work with IP partners on new concepts
Find out more on page 22
park resorts their communities, contributing
• In-house production capabilities for wax figures, LEGO
to the local economy MERLIN ’ S
model production and attraction theming create • Six complementary strategic • We partner with two charities MAGIC
efficiencies and reduce costs
• World class animal welfare expertise and ethical growth drivers to provide children with
WAND
memorable experiences and
animal husbandry
• We can project manage any scale of construction project
to protect the marine VISITS
environment
including individual rides and attractions in our existing
estate, new Midway attractions across the globe and full Find out more on pages
scale LEGOLAND parks OUR CUSTOMER OFFERING 54 to 57
8.0p
Find out more on pages 24 to 25
VISITOR REVENUE ACCOMMODATION INVESTORS
• Admissions, increasingly booked in advance, including cluster/ • A wide range of themed accommodation for short • We aim to deliver returns, long
multi-day tickets and annual passes break visitors – hotels, chalets and lodges, glamping term value and dividend
• Fastrack passes • Multiple options cater for different demographics growth to shareholders
• Food outlets – from snacks to gourmet restaurants and price points DIVIDEND
• Photos – print and digital downloads PER SHARE
• Retail – souvenirs, clothing, LEGO
UNDERPINNED BY STANDARDS IN ... Health, safety and security Corporate governance Business responsibility
Industry leading standards, a rigorous safety culture and complete Diverse, experienced Board and effective Committees Ethical operating culture and animal welfare standards,
commitment from our teams provide oversight with a commitment to manage environmental impacts
Find out more on pages 68 to 69 Find out more on pages 58 to 65 Find out more on pages 48 to 57
10 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 11
67.0m
C H I E F E X ECU TIV E ’ S R E P O RT
STR ATEGIC REPORT
DEVELOPING THE V I S ITO R S
PL ATFORM FOR GROW TH
£327m
GOVERNANCE
U N D E R LY I N G
O PE R ATI N G PRO F IT
MERLIN MADE GOOD STR ATEGIC 2018 overview
Merlin made further good strategic progress
Market overview
Merlin operates in an attractive marketplace,
PROGRES S THROUGHOUT 2018 . during 2018, delivering organic growth in benefiting from underlying growth
FINANCIAL STATEMENTS
underlying EBITDA of 6.2% and underlying characteristics and favourable dynamics. At
OU R LONG TERM INVESTMENTS operating profit of 3.4%. We welcomed a record its heart is increasing disposable income in
Merlin is uniquely placed to
HAVE FU RTHER DE VELOPED exploit the growing
67 million visitors whilst continuing to report both developed and emerging economies,
strong guest KPIs, including a three percentage and the ever greater value being placed upon
THE PL ATFORM FOR opportunities to partner with point increase in our ‘Net Promoter’ score, time together with friends and family.
FUTU RE GROW TH . leading owners of Intellectual to 57%. We have further strengthened our
pipeline of attractive opportunities alongside Firstly, we continue to see the long term growth
Property content and provide investing in our existing brands, underpinning opportunity through international tourism,
additional ways in which to our platform for continued growth. benefiting our Gateway city attractions such as
those in London, New York and Hong Kong.
OTHER INFORMATION
deliver memorable experiences. Growth in the year was driven primarily by our Globally, there were 1.3 billion tourist arrivals
New Business Development programme, which in 2017 – over half of which were travelling
saw us open a record 644 accommodation for leisure or recreation – representing a
rooms and seven new Midway attractions – the 3.8% CAGR over the past decade. This has
majority of which were either new brands or been driven in part by the continued growth
attractions in new markets. The pilot openings of in emerging markets, with increasing levels of
our two new brands – ‘Peppa Pig World of Play’ wealth in countries such as China and India set
OUR STR ATEGY and ‘The Bear Grylls Adventure’, in Shanghai to continue over the coming years. We therefore
and the UK respectively, have already received remain confident that the market opportunity for
encouraging guest feedback. These openings our Gateway city attractions remains significant.
To create a high growth, high represent an entry into exciting new market
categories for Merlin and underscore our focus Secondly, the increase in short breaks, in
return, family entertainment in strengthening our position as an operator addition to fuelling international travel, sees
company based on strong of location based entertainment partnering more and more people take ‘staycations’. Short
brands and a global portfolio with leading owners of Intellectual Property. breaks in the UK have grown at twice the rate of
longer holidays over the past 20 years. We are
that is naturally balanced 2018 trading saw an improvement in trends increasingly well positioned to meet this demand
against the impact of across a number of our businesses. Midway through our growing offering of themed, on-site
London, which had been adversely impacted by accommodation and ‘second gate’ attractions to
external factors. the 2017 terrorist attacks, returned to growth extend dwell time. Furthermore, the relatively
These four strategic elements are identified in the second half of the year; and Resort lower cost to the guest of ‘staycations’ has
by the following icons throughout this Theme Parks saw exceptionally strong like for historically provided balance to Merlin’s portfolio
Annual Report. like growth, benefiting from successful product during more challenging economic conditions.
investment and very favourable weather. This
High growth performance was partially offset by the cost Finally, Merlin is uniquely placed, given its global
headwinds we have been highlighting for several reach and multi-format expertise, to exploit the
reporting periods, as well as a quieter year growing opportunities to partner with leading
for ‘new news’ in our LEGOLAND parks. owners of Intellectual Property content. These
partnerships provide Merlin with additional ways
High return Since the year end we have announced our in which to deliver memorable experiences,
intention to open a LEGOLAND park in whilst offering those partners opportunities
South Korea, having reached an agreement to increase engagement with their customers.
with the local province regarding funding. This Merlin has long enjoyed success through flagship
is important for the continued development partnerships such as that with LEGO, and was
Strong brands of the LEGOLAND estate, and the planned pleased to launch two new IP-based brands in
opening by 2022 will maintain our LEGOLAND 2018. We see opportunities to develop further
Parks momentum, following the targeted relationships with more IP or content owners
opening of LEGOLAND New York in 2020. over the coming years, building on the success of
existing relationships.
Global portfolio
12 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 13
C H I E F E X ECU TIV E ’ S R E P O RT
STR ATEGIC REPORT
GOVERNANCE
In addition to these existing market drivers, we Strategic synergies – we continue to leverage which are advanced, with a number of potential These cost savings will be delivered through
continue to carefully monitor broader consumer the growing scale of the Group through partners to develop several LEGOLAND parks back office savings, such as our ‘Finance 21’
tastes and trends, particularly with regards areas such as procurement, promotional in China. The current investment phase for project, operational efficiencies by evolving our
FINANCIAL STATEMENTS
to new concepts. The exponential growth in activity and technology. The roll out of the LEGOLAND parks will continue to have the business model, the application of continuous
formats such as ‘pop-ups’ and Escape Rooms is accesso ® e-commerce platform is substantially Our ongoing product effect of reducing near term, reported Group improvement principles in our attractions, and
of increasing interest, and we have already begun complete, whilst our 2019 focus will be ROCE given the projects’ gestation periods and in many cases through better use of technology
trialling some of these as part of offerings within upon further developing the digital guest investment and innovation, funding structures, but we are confident in the and automation. In addition to delivering financial
our existing attractions, with Escape Rooms journey and the launch of the first Merlin and relentless focus on long term opportunity and returns outlook. savings, our programme seeks to improve
now in Madame Tussauds San Francisco and Annual Pass membership programme. productivity, better enabling our attraction staff
The Bear Grylls Adventure in Birmingham, UK.
creating memorable Strategic acquisitions – whilst we remain and general managers to focus upon what truly
Short break positioning – the success of our experiences for our guests active in assessing inorganic opportunities delivers memorable experiences for our guests.
Strategy update accelerated investment in on-site themed throughout 2018, have against our clear investment criteria, we
With this attractive market backdrop, Merlin’s accommodation and developing our theme made no acquisitions during 2018. Guest satisfaction
OTHER INFORMATION
purpose is about creating truly memorable parks into short break resorts remains resulted in continued strong Our ongoing product investment and innovation,
experiences for our guests; creating memories compelling. Accommodation revenue grew levels of guest satisfaction. Health, safety and security and relentless focus on creating memorable
to be shared at the school gates, on social by 28% in 2018 on a constant currency basis The health, safety and security of our guests and experiences for our guests throughout 2018,
media or simply on the journey home. and has doubled over the past five years, employees remains our number one priority and have resulted in continued strong levels of guest
now representing 21% of revenue across our we will continue to invest time and resource in satisfaction. Guest feedback is monitored daily
Since the creation of Merlin in 1999, our strategic theme park Operating Groups compared to improving our already high standards. In 2018, through the touchscreens at our attractions,
vision has been to create a high growth, high 13% in 2013. Accommodation continues to we developed further global partnerships with generating over one million reviews each
return, family entertainment business naturally drive improved levels of guest satisfaction third party organisations related to matters year. In 2018 we delivered an overall guest
balanced against external factors. Specifically, and increases in advanced bookings. In of health, safety and security with the aim of satisfaction score across the Group of 95%,
we aim to continue to diversify our portfolio, 2018 we opened 644 rooms across three mutually sharing any learnings, and launched and a ‘Net Promoter’ score of 57%, which
by geography, brand and customer, ensuring LEGOLAND parks, and anticipate opening a number of internal initiatives including the increased by three percentage points.
a balance of indoor and outdoor attractions 372 rooms across a range of formats in 2019. Company’s HSS magazine called ‘The Shield’
and international and domestic visitation. and a new series of line manager-led briefings. Employee engagement
Midway roll out – we continue to see the We know that the better engaged our
In pursuit of this, Merlin has consistently opportunity to open new Midway attractions Productivity Agenda employees are, the better our guests’
focused on its six strategic growth drivers globally, based on both our existing and new Merlin has successfully mitigated significant experiences will be. We are therefore pleased
(see pages 14 to 15). Progress against brands. We opened seven new attractions in cost pressures in recent years, resulting from to report that our annual employee survey
these in 2018 has been as follows: 2018, including pilots of our three new brands legislative changes such as the UK National – ‘The Wizard Wants to Know’ – which was
– ‘Little BIG City’ (the first pilot attraction of Living Wage, and significant increases in utilities completed by 95% of our employees, shows
Existing estate capex – investment in the existing which was launched in Berlin in 2017), ‘Peppa Pig and business rates. We are also increasingly that 94% enjoy working at Merlin. Employee
estate helps to maintain and grow visitation World of Play’ and ‘The Bear Grylls Adventure’. seeing the impact of tighter labour markets engagement at Merlin remains significantly above
and guest satisfaction. In addition to the major Our pipeline continues to comprise a mixture in many parts of the world such as Southern global benchmarks. We’re not stopping there
capex investments in 2018, such as the ‘Wicker of new brands or attractions in new markets, as California, Bavaria and the South East of though. In 2018 we developed a new employer
Man’ roller coaster at Alton Towers and ‘LEGO well as the core brands in established markets. England. To date this cost mitigation has been brand and value proposition; ‘Love Your Work.
City: Deep Sea Adventure’ at LEGOLAND Over time, these will broadly balance out, achieved largely through attraction-level Work Your Magic’, as we seek to attract,
California, new innovations included immersive though 2017-18 reflected proportionally more savings and tactical efficiency improvements. recruit and retain the very best people, and
‘build and play’ features in our LEGOLAND emerging market and new brand openings. work is under way to encourage even greater
Discovery centres, and Madame Tussauds’ first In 2019, we target opening ten attractions. Mindful of these continuing cost pressures, we diversity and inclusivity within the workplace
‘intelligent’ wax figure in Shanghai. Following have been focused on our Productivity Agenda through a number of new people initiatives.
our decision in Q3 2017 to rebalance our Opening new LEGOLAND parks – 2018 which seeks to consolidate a number of initiatives
capital allocation more towards new business represented the first full year of trading of to provide long term, sustainable savings across Our team of 28,000 employees should be
opportunities, Midway Attractions and Resort LEGOLAND Japan, and the resort was enhanced the Group. As a result, we have identified proud of what we have achieved this year, and
Theme Parks existing estate capex spend was further through the addition of a SEA LIFE centre annualised savings of up to £35 million which we I would like to thank them for their continued
carefully reduced in 2018. At the same time and 252 bedroom hotel. We made encouraging expect to deliver by 2022, incurring overall one- dedication and for delivering another year
the team retained a clear focus on maintaining progress during the year towards the opening off operating costs related to the implementation of fun, safe, and memorable experiences for
our levels of guest satisfaction. This capital of LEGOLAND New York, scheduled to open of this programme of approximately £35 million. our millions of guests around the world.
discipline has resulted in Group existing estate in 2020, and we have subsequently announced
capex reducing to 9% of revenue, remaining our intention to open a park in South Korea by Nick Varney
within our target range of 8% to 10%. 2022. We remain in active discussions, some of Chief Executive Officer
27 February 2019
14 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 15
O U R S I X S T R AT E G I C G R O W T H D R I V E R S
STRONG BR ANDS
STR ATEGIC REPORT
HIGH GROW TH
PROGRESS , GROW TH AND HIGH RETURN GLOBAL PORTFOLIO
PL ANS FOR THE FUTURE
GOVERNANCE
GROW TH DRIVER PROGRESS 2019 OUTLOOK ME ASURING PROGRESS
Organic revenue Accommodation revenue
Planned investment Investment in the existing estate allows us to grow We made significant investments across all Each year we plan that all existing estate attractions will have ‘something new’
E XISTING ESTATE DEVELOPMENT
growth growth
visitation to the attraction, provides us with Operating Groups ranging from IP-based features for customers to enjoy. In 2019 major investments will include the launch of
5.2% 27.7%
FINANCIAL STATEMENTS
cycles in the something new to market, and provides a degree such as the DC Comics ‘Justice League’ the iconic Colossos roller coaster at Heide Park while LEGOLAND Florida
existing estate of pricing power. Each attraction has a planned experiences, through to new roller coasters such will see the first of our ‘LEGO Movie World’ investments. At SEA LIFE
investment cycle with varying capex levels that as the ‘Wicker Man’ at Alton Towers Resort. As Sydney Aquarium, visitors will be able to experience the world’s largest
help to smooth overall expenditure across the planned, total investment reduced in 2018 as we Great Barrier Reef exhibit in the state of the art, interactive ‘Day and Night in 2018 in 2018 (constant currency)
portfolio and ensure investments are funded from reallocate capital to new business opportunities. on the Reef’.
operating free cash flow. Accommodation Midway attractions
Find out more on pages 16 to 17
Exploiting strategic We continue to leverage the growing scale of the The roll out of the accesso® e-commerce platform Work will continue on our projects to evolve and simplify our operating + 644 + 7
OTHER INFORMATION
Group through areas such as procurement, for online revenue is substantially complete and models across both theme parks and Midway attractions. rooms across three across six brands in four countries
synergies promotional activity and technology. In doing so several projects are now under way as part of our LEGOLAND parks launching two new brands
we always seek to improve the customer’s Productivity Agenda initiative to deliver long term The ‘Finance 21’ project will start to roll out a cloud based software
experience, for example, by streamlining the guest operational efficiencies. solution that will underpin the strategy to optimise the Group’s
journey on our e-commerce platforms. finance organisation.
Developing our Adding on-site, themed accommodation improves A total of 644 accommodation rooms were opened We plan to open on average approximately 500 rooms per annum in the
guest satisfaction, increases the catchment area during 2018 across LEGOLAND Japan, transforming medium term (372 in 2019 at LEGOLAND Billund, Alton Towers and
theme parks into for our parks, and increases the level of the park which opened in 2017 into a resort, Gardaland) and will continue the investment in second gates to further
destination resorts pre-booked revenue. LEGOLAND Deutschland’s new Pirate Island Hotel, develop resorts. LONGER TERM FOCUS ARE AS
and LEGOLAND California, where a second hotel
doubled the on-site accommodation capacity.
Productivity Agenda
Find out more on pages 18 to 19 Our Productivity Agenda initiatives will look to evolve the Group’s operations
over the next few years. We expect to see the benefits of this in lower
NEW BUSINESS DEVELOPMENT
operating costs, with up to £35 million annualised cost savings by 2022. At the
same time we will continue to focus on the guest experience, for example
Opening new We are expanding our estate of Midway Seven new Midway attractions opened in 2018. Reflecting our plan to roll out new brands in new locations, 2019 will see
through the use of improved technology.
attractions, rolling out a combination of core These included Little BIG City Beijing, our second ten openings overall. More Peppa Pig World of Play attractions will expand
Midway and new brands, in both established and attraction under that new format, the first Dungeon that new IP-based brand in China and the USA. There will also be a
Short break accommodation
attractions developing markets. attraction in Asia in Shanghai, and pilots of two new number of core brand openings with a suite of LEGOLAND Discovery
We see a continued market demand for our themed accommodation in the
IP-based brands – The Bear Grylls Adventure in the Centres and SEA LIFE Centres scheduled to open in the USA, China
and Malaysia. short break holiday market. Our investments in this area to date have proved
UK and Peppa Pig World of Play in Shanghai.
very successful, generating strong financial returns and helping to increase
Find out more on pages 20 to 21 guest satisfaction over their longer visit to a Merlin destination. Accordingly, we
plan to have opened approximately 2,500 new rooms between 2018 and 2022
across both theme park Operating Groups.
Opening new We are expanding our current estate of eight 2018 was the first full year of trading for Construction on LEGOLAND New York will ramp up during 2019 in line LEGOLAND parks
LEGOLAND parks that we operate under three LEGOLAND Japan that expanded into a full with our schedule to open in 2020. At the start of 2019 we announced that agreement has been reached with the
LEGOLAND parks models (operated and owned, operated and resort in the year with the opening of the on-site local province in respect of LEGOLAND Korea, which will be a fully owned
leased, operated under management contract). hotel and the SEA LIFE Nagoya second gate and operated resort, scheduled to open by 2022. Our increasing level of
attraction. LEGOLAND New York is now consultancy and study agreements give us confidence for further opportunities
under construction. in China and we continue to believe that there is the potential for 20
LEGOLAND parks worldwide.
Intellectual Property (IP)
Strategic We operate in relatively fragmented markets, with Reflecting our strict investment criteria, no We continue to monitor the market for acquisition opportunities.
We see the growing importance of IP content and how location based
non-natural owners of attractions. This provides acquisitions were made in 2018.
acquisitions opportunities for acquisitions.
entertainment can be a platform for this, providing greater ways to deliver
memorable experiences, whilst offering partners opportunities to engage with
consumers in a richer way. We see the opportunity to develop multiple
relationships with IP or content owners over time and believe Merlin is
uniquely placed to develop such relationships given our strong credentials, and
our multi-format, global reach.16 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 17
GROW TH DRIVER
STR ATEGIC REPORT
PL AN NED INVESTMENT
C YCLES IN THE
E XISTING ESTATE
Each of our existing attractions follow a
planned capital investment cycle enabling them
to plan ahead and increase capacity. A major
roller coaster investment at a theme park
creates marketing ‘new news’ that generates
GOVERNANCE
media and customer interest, thereby
growing visitation.
RESORT THEME PARKS
FLAMING NEW
FINANCIAL STATEMENTS
ADVENTURES
OTHER INFORMATION
‘ WICKER MAN ’ ROLLER
COASTER AT ALTON
TOWERS
The process to create the ‘Wicker Man’ started
more than four years ago as Alton Towers
looked to create a new ‘family thrill’ ride. The
Merlin Magic Making (MMM) creative team took
on the challenge to create an innovative theme
that was exciting enough for thrill-seekers and
also one that most of the family can enjoy, and
from there came the idea of putting wood and
fire together.
MMM then project managed the construction
as the ‘Wicker Man’ took shape – 7,500 tonnes
of sustainably sourced wood creating over
2,000 feet of track to give riders the unique
‘woodie’ experience.
The laughter coming from the
‘Wicker Man’ is the ultimate In its first year of operation the ‘Wicker Man’
indicator for me that it’s done its has been really well received, winning industry
awards, delivering on its investment criteria and
job – happy and delighted guests helping drive significant revenue growth and
enjoying the adrenaline and fun of high customer satisfaction levels.
the theme park, on an innovative We believe that the ‘Wicker Man’ has attracted
and creative product that adds to more visitors back to the resort, boosting the
our great compendium of world local and regional economy and providing new
and exciting job opportunities.
class roller coasters.
Ian Crabbe
Divisional Director,
Alton Towers Resort18 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 19
GROW TH DRIVER
STR ATEGIC REPORT
DE VELOPING OU R
THEME PAR K S INTO
DESTINATION R ESORTS
Merlin currently has over 4,000 rooms across its
estate. We see continued strong guest demand
for themed accommodation and an ongoing trend
towards short breaks. Adding accommodation
increases the park catchment area, improves
GOVERNANCE
guest satisfaction and provides strong returns
on investment.
FINANCIAL STATEMENTS
OTHER INFORMATION
LEGOL AND
DEUTSCHL AND
PIR ATE ISL AND HOTEL
For the start of the 2018 season the German
resort introduced its fourth, themed overnight
accommodation; the 142 room, €27 million Pirate
Island Hotel, further extending the capacity of the
accommodation offering. Exceptionally high
satisfaction levels and occupancy of up to 95%
show that the pirate theme is as popular as ever.
Buccaneer motifs on the walls, a huge mast in the
lobby, ship-shaped bunk beds and a cosy tavern
with a family-style dining concept provide a pirate
atmosphere in the whole hotel complex.
Combining these details with LEGO models of all
shapes and sizes, LEGOLAND Deutschland
creates a one-of-a-kind family experience.
In 2008 the resort earned 6% of its revenue from
its 97 rooms. Following subsequent investments The Pirate Island Hotel has seen
in a range of accommodation types, that has now really strong guest satisfaction
increased to 29% of revenue coming from 461
rooms. With approximately 60% of our holiday
scores, giving guests wishing to
village guests coming from outside Germany, this come and visit us an even wider LEGOLAND PARKS
TREASURED
expansion means LEGOLAND Deutschland is choice as we continue to
now a truly international resort.
develop LEGOLAND
97% Deutschland into an
international resort destination.
G U E S T S AT I S FAC T I O N
>90%
Martin Kring
Divisional Director,
LEGOLAND Deutschland
Resort
EXPERIENCES
P E A K O C C U PA N C Y20 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 21
GROW TH DRIVER
STR ATEGIC REPORT
OPEN ING NE W
M IDWAY AT TR AC TIONS
Opening new Midway attractions delivers
organic growth through core and new
brands across existing and developing
markets. Merlin is uniquely placed with its
strong existing brands and relationships with
IP holders. New attractions can tap into
MIDWAY ATTRACTIONS
GOVERNANCE
A WORLD
different demographics such as the
pre-school family market, helping to further
diversify our portfolio.
OF PLAY
FINANCIAL STATEMENTS
OTHER INFORMATION
PEPPA PIG WORLD OF
PL AY SHANGHAI
Peppa Pig is a hugely successful, critically
acclaimed pre-school animated series for
girls and boys that has global reach,
extremely high awareness and is still
growing in many markets. In 2017 Merlin
announced a partnership to open
attractions in all territories excluding
the UK.
The first Peppa Pig World of Play opened in
October 2018 in the LCM Mall in Pudong,
Shanghai. The attraction boasts ten amazing
play areas, each recognisable from the much
loved TV series, including Peppa’s Family
Home, Madame Gazelle’s School Bus,
Peppa’s Treehouse and Rebecca Rabbit’s
Underground Adventure.
It’s a pleasure to see the smiles We have plans to open further Peppa Pig
on children’s faces as they step World of Play sites at locations in China and
into the world of Peppa Pig – the USA during 2019, with hopefully many
more to come in the future.
the attraction is packed full of
activities that will provide our
youngest visitors with a truly
memorable experience.
Yuna Wang
Attraction Manager,
Peppa Pig World of Play
Shanghai22 M E R L I N E N T E RTA I N M E N T S P LC ANNUAL REPORT AND ACCOUNTS 2018 M E R L I N E N T E RTA I N M E N T S P LC 23
Q & A – O P E R AT I N G G R O U P S
STR ATEGIC REPORT
VIEWS FROM OUR OPER ATING
GROUP LEADERS
GOVERNANCE
RESORT LEGOL AND MIDWAY
THEME PARKS PARKS AT TR ACTIONS
FINANCIAL STATEMENTS
OTHER INFORMATION
Fiona Eastwood Hans Aksel Pedersen Nick Mackenzie
Q. What are you proudest of in 2018? Q. What are your key achievements in 2018?
During 2018 one of our main achievements was to significantly increase Midway London is our largest division so it was reassuring to see growth
our accommodation offering, opening new hotels at three resorts in in the cluster in the second half of the year, as visitors return to London
Germany, Japan and the USA. At LEGOLAND California, for example, following the suppressed trading we saw in 2017 after the terror
we doubled the on-site accommodation capacity with the new 250 room incidents early in that year. Similarly, in Istanbul, another location where
LEGOLAND Castle Hotel. With an overall guest satisfaction score of there have been security concerns in recent years, our cluster of three
93%, we are proud to share one typical comment – ‘I cannot rate this attractions reported strong growth, confirming our view of the long
place highly enough! Give yourselves a round of applause because your term potential of that exciting marketplace.
ability to make us feel so welcomed, special and all the amenities your
hotel provided was simply spectacular!’. Q. What are you proudest of in 2018?
Ever since Merlin acquired Living and Leisure Australia in 2012, and
Q. How do you see the marketplace changing and your position in it? reflecting our long held view that cetaceans should not be kept in
We are aware that competition is fierce so we need to aim to beat our captivity, we have been committed to finding a sustainable solution to the
Q. What is your best guest story of 2018? Q. How do you see the marketplace changing and your best performance every day. This comes from a combination of both the long term care of the beluga whales we inherited at Changfeng Ocean
It’s always great to receive feedback from guests and one that really position in it? product offering and how our staff interact with guests. If guests come World in Shanghai. So it was great that in June 2018 we confirmed that in
stands out for me relates to a mum visiting Alton Towers Resort with We have the challenge of operating in a world that’s rapidly changing; for their first visit and we ‘blow their socks off’ then they will return – early 2019 we will hand over the care of ‘Little Grey’ and ‘Little White’ to
her autistic son. She wrote to thank the team for the way they made time with a plethora of choice for thrill-seekers and young adults from the challenge is then to keep up that level of performance for their our partner charity, the SEA LIFE Trust, at the world’s first beluga whale
for her son; sitting with him to answer all of his questions and providing pop-ups to increased escapism from in-home entertainment. With second visit and hopefully many more to come. Memorable experiences sanctuary, now being constructed at a small bay on the south coast of
exciting facts at Alton’s SEA LIFE which made him feel important. She pressure on families to find time to be together and escape the ‘day to still reign and Merlin delivers these unique family experiences through Iceland. We will be telling the amazing story of their journey throughout
said that her son’s confidence had grown due to the kindness and amount day’, our role is to deliver unmissable, memorable experiences that tap exceptional staff and high quality attractions. Luckily our business is built the SEA LIFE estate in 2019, as they move to a more natural and wild
of time the staff had spent with him. She ended with a comment that it’s into the fear of missing out amongst the teen and young adult on LEGO play, fun and imagination, and we’ll probably not run out of that habitat – hopefully somewhere that more belugas currently housed in
clear the team there love what they do. This to me epitomises what we demographic and deliver on togetherness and escapism for families. In any day soon! aquariums will call home in the future.
do and the difference our team can make in delivering amazing, doing this, we need to ensure we have a strong digital customer journey
memorable experiences. to delight our guests from the ‘hello’ to the ‘goodbye’ and everything in Q. What are you and your team most excited about in 2019? Q. What are you and your team most excited about in 2019?
between. We see the potential for growth in the family short break and In 2019 we open ‘The LEGO Movie World’ at LEGOLAND Florida There is a wide range of great products this year that really show the
Q. What were your key achievements in 2018? ‘staycation’ market, where we will continue to transform our parks into Resort – based on the first LEGO movie and the 2019 sequel that hits breadth of what Midway offers. At SEA LIFE Sydney Aquarium there will
As well as delivering a strong trading performance on the back of great resorts by building our unique themed accommodation. cinemas around the world from February. This state of the art be a full year’s trading from the ‘Day and Night on the Reef’, recreating
new product offering and smart marketing, for example, on local season experience will put guests right in the middle of Bricksburg, the city the wonders of that unique habitat across 24 hours of the day. At
passes as part of our strategy to build loyalty, drive revenue and hedge where Emmet lives in the movies, featuring two new rides, the chance to SEA LIFE Bangkok Ocean World we will see a new ice themed penguin
against weather, it would be how we delight our guests as evidenced by meet the characters from the movies, a giant themed playscape, and the attraction, while Madame Tussauds New York will showcase the best of
our continued high guest satisfaction across our resorts. complete transformation of an existing interactive boat ride. The sights Andrew Lloyd Webber’s Broadway musicals, as we take guests on a fully
and sounds will be fully immersive, bringing the movie franchise to life in a immersive journey through the magical world of Broadway. Finally, we
way that only a LEGOLAND park could. This is a significant investment are looking forward to ‘The LEGO Movie 2: The Second Part’, where our
at LEGOLAND Florida and the first of what we plan to be a global roll LEGOLAND Discovery Centres will have movie themed events across
out of a programme of ‘LEGO Movie Worlds’ in the coming years. the estate.You can also read
