Nick Varney
Chief Executive Officer
17 October 2017
2017 SUMMER TRADING
AND STRATEGY UPDATE
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Merlin Entertainments 2017 Summer Trading and Strategy Update, Schemes and Mind Maps of Geography
The 2017 summer trading update and strategy update presented by Nick Varney, CEO of Merlin Entertainments. The update includes an overview of the company's strategic statement, financial performance, growth drivers, and future strategy for 2018-2021. The report also discusses the impact of external factors such as terror attacks and currency fluctuations on the company's performance.
Typology: Schemes and Mind Maps
2021/2022
1 / 51
This page cannot be seen from the preview
Don't miss anything!
Partial preview of the text
Download Merlin Entertainments 2017 Summer Trading and Strategy Update and more Schemes and Mind Maps Geography in PDF only on Docsity!
Nick Varney
Chief Executive Officer
17 October 2017
2017 SUMMER TRADING
AND STRATEGY UPDATE
INTRODUCTION
4 |
5 |
Tourist / Domestic
Domestic Tourist
Weather Exposure
Outdoor Indoor
Geography
UK US
EUR APAC
Increasingly Diversified Asset Portfolio
1
1 – Geography and Weather split based on 2016 FY revenue. Tourist / Domestic visitor split based on touchscreen data
TRADING UPDATE
SUMMARY GROUP
PERFORMANCE
7 |
Reported Growth
FX
Constant FX
LLP
Midway
Accommodation
Midway
LLP
RTP
Group LFL
New Business Development
Like for like
12.4% total growth reflecting NBD
contribution
Strong accommodation
performance
Positive early season momentum
across most attractions
UK terror attacks pre-Easter and
Whitsun represented inflection
point in London and UK parks
Pressure on LDCs from retail
sales, particularly affecting
Midway North America
Peak summer trading
(August/early September)
impacted by extreme weather in
Northern Europe, Italy and Florida
SECURITY CONCERNS
IN GATEWAY CITIES
8 |
Orlando – Jun 16 4 attractions (Incl. LLF)
New York – Sept 16 1 attraction
Las Vegas – Sept 17 1 attraction
UK – Mar, May, Jun & Sept 17 7 attractions in London & Manchester (plus RTP impact)
Paris – Nov 2015 1 attraction
Brussels – Mar 16
Berlin – Dec 16 5 attractions
Munich – Jul 16 1 attraction
Bangkok – Aug 2015 2 attractions
Barcelona – August 17
Nice – Jul 16
Istanbul – Various 3 attractions
2/3 of attacks in Europe
(including Turkey)
90
100
Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-
London Cluster Visitation (MAT)
EUR/
GBP:
June July October 1.31 1.20 1.
Depreciating Sterling
TERROR IMPACT ON MIDWAY LONDON
9 |
Inflection point following terror attacks; pre Easter and Whitsun
Denotes peak period
Brussels March 2016
UK Terror attacks March to September
Brexit vote June 2016
UK RTP
MARKET BACKDROP
11 |
Share gains in a difficult 2017 market
Theme Park Market Share^1 Theme Park Market visitor growth yoy, 2017^1
54% 55%^ 58%
46% 45%^ 42%
2015 YTD 2016 YTD 2017 YTD
Merlin Other
Mar-May Jun-Aug
Merlin share increase of c4% vs 2015 reflecting
gains at both Alton Towers and other parks
Strong market at the start of the year
offset by terror attacks and poor weather
resulting in difficult peak season trading
12% decline
in value of
day trips in
June-August 2
1 - GfK research based on visitation. Attractions comprise: Alton Towers, Chessington World of Adventures, LEGOLAND Windsor, THORPE PARK, Warwick Castle, Drayton Manor, Flamingo Land, Paultons Park, Longleat Safari and Adventure Park, Blackpool Pleasure Beach, Creaylys, Gulliver’s World, Warner Brothers Studios, Hobbledown Farm and others. 2 - VisitEngland
SUMMARY AND 2017
OUTLOOK
12 |
Balance of year in line with YTD trends
Key Halloween period remains
2017 EBITDA in the range of £470m to £480m
Challenging external conditions
Clear inflection point after UK terror attacks
Tight cost control ongoing
CONTEXT
14 |
Tourism destinations clearly
affected by security concerns
Now at the highest level of terrorist
activity ever in Europe and unlikely to
reduce in the foreseeable future
Externally induced cost pressures across
all countries, particularly UK
“When you are
experiencing storms,
the sensible thing is to
navigate around them”
NICK VARNEY
LOOKING AHEAD
Flexing the strategy 2018-
Base
4 – 6% growth
4 – 6% growth
DELIVERING LONG TERM GROWTH 2018-
Strategic
Growth Drivers
Existing estate growth via capex
1
Strategic synergies
2
Resort positioning
3
(^4) Midway roll out
LEGOLAND parks roll out
5
Strategic acquisitions
6
17 |
Flexed
1 – 3% growth
6 – 9% growth
£100m reduction
in Existing Estate
Increase in accomm.
Productivity Agenda
Overall EBITDA & CAPEX broadly unchanged
Continue to target high single-digit to low double-digit EBITDA growth
Total capex and EBITDA growth trajectory broadly unchanged
Existing Estate
New Business Development
APAC
1/
Europe
1/
Americas
1/
1. OVERARCHING STRATEGY OF GEOGRAPHIC
AND BRAND DIVERSIFICATION