Good weather over Halloween boosts Alton Towers' trade
Good weather over Halloween helped boost trade at theme parks including Alton Towers, the resort's owner Merlin has said.
The company delivered some good news as it announced an upturn in its performance since it delivered half-year results on September 29, including over Halloween.
The group – which also operates Madame Tussauds, Legoland and the London Eye – said it now expects good profit growth for 2016. In a statement, it added: "The Resort Theme Parks Operating Group enjoyed a strong Halloween period, helped by favourable weather."
Merlin was fined £5 million earlier this year after admitting health and safety breaches in relation to the incident on The Smiler in which five people were seriously injured, including two teenagers who each lost a leg.
Alton Towers made up 70 staff redundant following a review of the business in the aftermath of the crash.
Despite the group forecasting profit growth for the year, shares were flat following the announcement.
Analysts said that investors were not enthused by the results because they showed that it had not improved the performance of its Midway Attractions Operating Group since reporting a 0.4 per cent sales decline in September.
It suggests that the tourism industry is not seeing a big bounce from the drop in the value of the pound.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "Lower sterling is failing to cast a spell over Merlin's London attractions.
"Lower visitor numbers to attractions in the capital, such as Madame Tussauds and the London Dungeons, impacted performance over the summer. The trend seems to be continuing in the run-up to Christmas.
"Fortunately, Merlin's long term future isn't based on its historic London footprint. The roll-out of attractions around the world continues, and while increased security concerns may be dampening city centre demand at the moment, we don't think it alters the long-term appetite for what Merlin has to offer."
