Alton Towers rollercoaster crash to cost Merlin up to £47 million

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The company told shareholders today that the accident, in which two passengers lost their legs, the subsequent closure of the park and suspension of marketing activities had “significantly reduced” volumes at Alton Towers.

Earnings before interest, tax, depreciation and amortisation at its theme parks business is now forecast to be between £40 and £50 million for the full-year, compared to last year’s £87 million.

“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,” Merlin said in a statement.

 

The company, which also owns Madame Tussauds, Legoland and Thorpe Park, said the “adverse impact” could continue into next year, hurting profitability in 2016.

 

Overall, group profit before tax for the full year was looking “broadly in line” with the last year’s £249 million, with lower-than-expected financing costs, savings and trading elsewhere helping to offset the decline in its theme parks arm, it added.

Merlin shares were down almost 6% at 398.6p in early trading.

Source Article from http://www.standard.co.uk/business/business-news/alton-towers-rollercoaster-crash-to-cost-merlin-up-to-47-million-10417706.html

July 27, 2015 |
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