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Merlin Entertainment says traded well in key summer months

Merlin Entertainment in advanced talks to open more Legoland Parks in China and the US
Merlin Entertainment in advanced talks to open more Legoland Parks in China and the US

Madam Tussauds and Legoland operator Merlin Entertainments said it traded well over its key summer period and forecast a year of growth. 

The world's second biggest operator of visitor attractions behind Walt Disney makes about a third of its turnover in July and August alone.

It said its summer performance took like-for-like revenue growth for the 36 weeks to September 6 to 6.7%. 

The rise compared with the 8.1% underlying growth reported for the first half of the year, although the firm had flagged a second-half slowdown due to tough comparatives with the same time last year. 

Merlin said profit growth in the period was consistent with management's expectations and was expected to result in full-year underlying profit margins similar to last year's levels. 

Prior to the update analysts were on average forecasting full-year core earnings of £400m, according to Reuters data. 

"The prospects for 2015 and beyond are attractive," chief executive Nick Varney said. 

Total group revenue in the 36-week period, including the impact of new attractions opened within the last year, rose 9.3% on a constant-currency basis. 

But at actual exchange rates, total growth was 3.8% due to the strength of sterling against Merlin's main trading currencies. 

Merlin, which listed on the London stock market in November, currently makes over 60% of sales in Britain and continental Europe but is aiming to generate a third from Europe, the Americas and Asia Pacific with a raft of new sites. 

In July the firm said it was in advanced talks to open more Legoland Parks in China and the US. 

Merlin is already due to open parks in Dubai and Japan in 2016 and 2017 respectively, taking it to seven globally, and has said it sees scope for 20 in total. Its attractions also include Sea Life, Alton Towers and the London Eye.