Merlin Entertainments issues profits warning
Group profits at Merlin Entertainments are expected to be down by £40 million, the company has warned.
The attractions operator says last month’s serious rollercoaster accident at its Alton Towers theme park last month has seriously impacted its finances.
Following the accident, Alton Towers was temporarily closed, rides at two other UK theme parks in the group were also halted and marketing was suspended.
Merlin said: "The combination of these factors has significantly reduced volumes at Alton Towers Resort and, to a lesser extent, the UK Resort Theme Parks estate.
Gross profits are expected to be around £40-£50 million, down from £87 million last year.
The company issued a statement saying: "The serious accident at Alton Towers on 2 June has had an adverse impact on trading at the start of the critical summer period and on the Board’s expectations for the financial performance of the Group for the full year.
"The magnitude of the financial impact is the result of both a significant reduction in revenue and the requirement to maintain an appropriate investment in customer service and marketing through peak season.
"Although difficult to assess at this stage, we believe that there may be some continued adverse impact on the Resort Theme Parks Operating Group profitability in 2016."
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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