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WTF Merlin?

Unfortunately we have to realise that there will be parks using AI for images now. Indeed, I'm sure some graphic designers will use it as a tool to aid their work.

That doesn't mean parks should outright use it with no tweaks or edits. As said above, it can be used to aid visuals (and if done properly, can have a positive impact on a final piece). But it should be subject to stringent checks, and ideally shouldn't be a final piece / parks shouldn't be churning out AI-only images.

I also think that AI shouldn't be used for larger pieces / should only be used in a brainstorming phase. Thorpe is guilty for that for their new entrance piece; it shows and I am not a fan of it.

With the ORP cases, I also have another question. Why did they change it at all? It was fine before. If it ain't broke, don't fix it.
 
I'm really curious as to what they're spending all the cash on because it's not like they've been investing that much in the parks? Yeah, they've been investing in their premier parks a little more in recent years compared to around pandemic times but still not to an exorbitant degree or anything, or at a level that an independent park couldn't do.
 
I think the troubles might be caused more by expansion than by investment in their main parks.

For years, Merlin had a quest for expansion, and to continually grow bigger and bigger. As a result, they made some bets that maybe weren’t the most successful; for instance, they’ve built some new Legolands that haven’t been especially successful in recent years, and they also made some questionable choices in the midways division that ended up backfiring.

I seem to remember seeing a graph (potentially even at the start of this topic?) that said that Merlin made the same amount of revenue across 99 attractions as SeaWorld (as they were then known) made across 11. Their aggressive expansion has spread them very, very thin and given them a lot of dead weight, and I’d imagine this has only grown worse as the company has grown.

They’ve also had some trouble at the UK parks with guest spend; visitor numbers are high, but people just aren’t spending money at the parks like they used to. The UK economy is currently very sluggish, and has been for a number of years post-COVID; middle earners are struggling. Even though park attendance overall has stayed relatively strong, guest spend seems to be a struggle; Merlin passes have driven spend per capita to be a bit too low, I feel, particularly with the advent of the £80 Discovery Pass following COVID.
 
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Bluntly put, I don't know what much of this realistically means. It sounds bad and scary, but I simply don't understand how bad and scary that is for a huge company the scale of Merlin.

-They've suffered losses -> so are many attractions, plus they've got rid of assets
-They could run loss on free cash -> Okay, and? Merlin don't open a vault, pick up £10m of notes and hand it over to a manufacturer for a ride. So what does that mean for a company of this size? Yes it affects cash flow and liquidity, but again, what does that mean for such a large company?

Realistically, can anyone explain what this really means, and what we might see as a result moving forward?
 
Are we really asking why their spending is so high when I've been harping on about the increased costs in this sector for what feels like over a year now??? 🙈 🤣

Wait until you see in black and white, in their public accounts next year, just how much their wage bill has risen between 2022 and 2025... I've been going on about it for over a year now, but since it seems some missed it... 18-20 year olds, who Merlin rely on, have had their minimum wage rise 52% from 22 to 25... Then there's N.I increases on top of this!!!

Screenshot 2025-08-23 150515.jpgScreenshot 2025-08-23 150440.jpg

(I wish to make no political point on the increase in wages here, I'm merely pointing out the insane increase in costs businesses like Merlin are experiencing in the UK.)

Electricity prices had, at one point, doubled in the space of 3 years... They've come down a little now, but are still around 60 - 70% more expensive than they were in 2022

Screenshot 2025-08-23 150135.jpg

And that's just two of the biggest expenses that their destinations will have, it is a similar story right down that list of expenses...

Have you seen their prices rise even remotely close to 60-70%? No, of course you haven't. There has been rises, but not nearly enough. They're aware that everybody is running on a tighter budget, and they need to keep footfall as high as possible, (and minimise the fall in revenues.) So they, like many many other businesses in this sector, are not in a position to raise prices to what they need to be, or they'd price people out, and add to their other issues of falling revenues.

It's a mess, and it will be for a few years. Until the economy improves, until inflation slows down, (real inflation, on the things that count!!!!) Until families, and the public in general, have more expendable income, and businesses are in a position to charge what they need to charge to make a profit, it won't improve... Merlin will get through it, so will other big boys, but lots won't, as we've already seen.

So yeh, whilst their rapid expansion and failed projects are definitely a factor, the biggest factor is probably not an increase in unnecessary spending at all... More down to the unavoidable increase in expenses, whilst simultaneously seeing their revenue decrease. (Which is what I assume they're hinting at when Bloomberg say "Softening of demand" in the UK and Chris Telfer said "you are exposed to the UK consumer, and consumer spending has been a source of worry.")
 
Nicky Borrill said:
Are we really asking why their spending is so high when I've been harping on about the increased costs in this sector for what feels like over a year now??? 🙈 🤣

Wait until you see in black and white, in their public accounts next year, just how much their wage bill has risen between 2022 and 2025... I've been going on about it for over a year now, but since it seems some missed it... 18-20 year olds, who Merlin rely on, have had their minimum wage rise 52% from 22 to 25... Then there's N.I increases on top of this!!!

View attachment 39208View attachment 39209

(I wish to make no political point on the increase in wages here, I'm merely pointing out the insane increase in costs businesses like Merlin are experiencing in the UK.)

Electricity prices had, at one point, doubled in the space of 3 years... They've come down a little now, but are still around 60 - 70% more expensive than they were in 2022

View attachment 39210

And that's just two of the biggest expenses that their destinations will have, it is a similar story right down that list of expenses...

Have you seen their prices rise even remotely close to 60-70%? No, of course you haven't. There has been rises, but not nearly enough. They're aware that everybody is running on a tighter budget, and they need to keep footfall as high as possible, (and minimise the fall in revenues.) So they, like many many other businesses in this sector, are not in a position to raise prices to what they need to be, or they'd price people out, and add to their other issues of falling revenues.

It's a mess, and it will be for a few years. Until the economy improves, until inflation slows down, (real inflation, on the things that count!!!!) Until families, and the public in general, have more expendable income, and businesses are in a position to charge what they need to charge to make a profit, it won't improve... Merlin will get through it, so will other big boys, but lots won't, as we've already seen.

So yeh, whilst their rapid expansion and failed projects are definitely a factor, the biggest factor is probably not an increase in unnecessary spending at all... More down to the unavoidable increase in expenses, whilst simultaneously seeing their revenue decrease. (Which is what I assume they're hinting at when Bloomberg say "Softening of demand" in the UK and Chris Telfer said "you are exposed to the UK consumer, and consumer spending has been a source of worry.")
Click to expand...
But what I would say to that is that other UK parks and leisure/hospitality companies aren’t showing the potential to run out of cash within a year. Yes, Blackpool has had losses, but Paultons still goes strong, as does Drayton and a number of other British players.

The fact that these changes have put Merlin into this position must surely be indicative of more Merlin-specific problems at the root of the issue, no?
 
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