Merlin Entertainments, the global attractions operator, says it is now “more disciplined” following a decrease in revenue and visitors in 2025.
Following a period of structural transition, the group has established a new operational foundation designed to support a multi-year growth phase anchored by high-profile intellectual property partnerships.
Financial stability and revenue trends
Merlin reported group revenues of £1,999 million for the 2025 financial year, representing a 1.6% decrease on a constant currency basis compared to the £2,057 million achieved in 2024. The group welcomed 60.5 million guests across its estate, a slight reduction from the 62.8 million recorded the previous year. Despite the lower visitation figures, the company achieved record guest satisfaction scores and a robust 8.6% increase in commercial revenue per capita. This growth in in-attraction spend was a primary driver in offsetting broader macroeconomic challenges.
The company’s underlying EBITDA reached £571 million, which is an increase of 0.7% on a constant currency basis. Operational margins also improved, rising from 27.9% to 28.5%. A significant inflection point in profitability was noted during the second half of the year, which saw 6.5% underlying EBITDA growth as all operating regions returned to growth by the fourth quarter. Furthermore, the group applied a £262 million impairment to the accounting value of the Madame Tussauds brand, a move intended to establish an accurate baseline for refreshing the proposition in line with modern consumer trends.
Transformation and strategic efficiencies
The 2025 results follow the first year of a comprehensive transformation programme aimed at consolidating Merlin’s operating model. The business successfully delivered £37 million in ongoing annual cash savings alongside £20 million in “Smart Spending” efficiencies. These initiatives are expected to result in total annualised savings of £50 million.
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments, said: “2025 was a transitional year for Merlin, during which we took decisive action to stabilise the business and strengthen its financial and operational foundations. We simplified our operating model, reinforced cost discipline, established a new Growth function, and strengthened our leadership team, creating a leaner and more unified organisation. As a result, we are now in a stronger position to maximise the value of Merlin’s unique and highly diversified portfolio, and the breadth of the iconic brands we bring to life, to deliver our vision of being the world’s most loved family escape.”
Expanding the global IP pipeline
Merlin has continued to focus its capital deployment on high-returning attractions and global IP collaborations. Recent expansion included the launch of the eleventh LEGOLAND Resort in Shanghai, the world’s third Peppa Pig Theme Park in Dallas-Fort Worth, and a co-located SEA LIFE aquarium in Florida. The group also committed £70 million to its US-based LEGOLAND Resorts, marking its largest single in-park investment in the country.
New experiences scheduled for 2026 include a Bluey-themed rollercoaster at Alton Towers Resort and a PAW Patrol land at Chessington World of Adventures Resort. The group is also introducing indoor space-themed rollercoasters at LEGOLAND Florida and California, as well as a LEGO Ferrari Build & Race attraction in New York. Additionally, a partnership with Sony Pictures Entertainment will debut an interactive Jumanji-themed experience at Madame Tussauds locations in New York, Hollywood, Las Vegas, and Sydney starting in July 2026.
Looking further ahead, Merlin is collaborating with Mojang Studios to open the world’s first permanent location-based Minecraft attraction at Chessington in 2027. This project will include the first-ever Minecraft-themed guest accommodation, following the announcement of a similar Harry Potter-themed accommodation project at LEGOLAND Deutschland Resort.
Fiona Eastwood added: “While the external environment remained challenging, our proactive steps delivered a clear improvement in performance as the year progressed. The second half marked an inflection point as initiatives began to bear fruit, with underlying EBITDA growth of 6.5%, and all regions returning to growth in the fourth quarter. We delivered a strong uplift of 8.6% in commercial revenue per capita and achieved record guest satisfaction scores globally – testament to the dedication of our teams, and the quality of the experiences we provide for families around the world.
“Looking ahead, we are seeing positive momentum in Q1 2026 with an exciting pipeline of new rides and experiences opening as the main season gets underway. We are placing a strengthened focus on Merlin’s compelling accommodation proposition, with themed rooms at our resorts sitting at the heart of our strategy to encourage families to extend their escape and explore more of our attractions. Our position as the partner of choice for owners of the world’s most beloved brands is confirmed by Mojang Studios working with us to build the first-ever Minecraft accommodation, and Warner Bros. Discovery Global Experiences helping us create the first-ever Harry Potter accommodation.
“We have turned a corner and are firmly on the path to improved profitability and sustainable growth. Merlin is now a stronger, more disciplined and more resilient business. Transformation will not be linear, but our direction is clear. We remain focused on delivering strong sustainable earnings, robust cash flow, and disciplined capital deployment. With a leaner cost base, a clearer operating model, and an exceptional team, we are confident in our ability to deliver long-term value as we pursue our vision to become the world’s most loved family escape, bringing every family closer through play.”
