Merlin Entertainments has reported widening losses despite an increase in visitor numbers across its global attractions.

The company operates around 120 attractions worldwide, welcoming more than 60 million visitors annually. It recorded record revenues in 2023 as tourism rebounded after the pandemic, but this momentum has slowed amid rising living costs and increased competition.

The operator reported a pre-tax loss of £492m in 2024, widening from £214m the previous year, whilst revenues declined by 3.2 percent to £2bn. The deficit was largely attributed to a £384m write-down on brand values, including £163m linked to Madame Tussauds, which continues to face questions over its relevance. Analysts have also expressed concern about Merlin’s £3.9bn debt burden, much of it stemming from its 2019 take-private deal. Debt servicing alone cost the company £380m in 2024. 

Fiona Eastwood, newly appointed as CEO, has begun restructuring to reduce costs and concentrate resources on flagship theme parks. On this front, competition is set to intensify, with Universal planning a new Bedfordshire park expected to attract 8.5 million visitors in its first year when it opens in 2031. 

Nevertheless, Merlin continues to invest in new attractions, such as the Hyperia rollercoaster at Thorpe Park and the world’s largest Legoland in Shanghai, with the operator maintaining it has “a healthy operating cash flow” with ample liquidity for continued investment.