The owner of Alton Towers has said visitor numbers remain lower since the rollercoaster crash in June last year that left five people with life-changing injuries and others seriously hurt.
While business at the Staffordshire theme park, the UK’s biggest, had begun to recover over the summer, Merlin Entertainments said “absolute visitor volumes still remain some way below the 2014 level”.
Its shares fell by more than 6% to less than 440p after the trading update on Thursday morning.
Merlin was fined a record £5m by a court on Tuesday for the “catastrophic” crash on the Smiler ride on 2 June 2015.
The judge, Michael Chambers QC, said the company’s safety procedures were “woefully inadequate” and criticised its slow response to the incident.
Merlin does not expect visitor numbers to return to normal levels until at least the end of 2017. The chief executive, Nick Varney, said: “From the beginning, the company has accepted full responsibility for the accident and strived to support all those injured in every way possible.
“We have learned every lesson from what happened last year and made a number of technical and procedural improvements to make sure that an accident like this cannot happen again.
“Both the judge and the Health and Safety Executive acknowledge [that] we have a good overall track record in safety and we remain committed to achieving the highest standards in this area.”
The group, which also owns the Legoland chain, Warwick Castle and Chessington World of Adventures, said revenue rose by 10.6% in the 38 weeks to 17 September, “despite challenging trading conditions”.
On a like-for-like basis, excluding the impact of new attractions and accommodation, revenue increased by 1.3%.
Like-for-like revenue grew in Merlin’s theme parks and Legoland divisions, but dropped by 0.4% at its Midway attractions division, which includes Madame Tussauds and Blackpool Tower.
Varney said the company’s Midway attractions were particularly struggling in London, where the group was yet to see any significant benefit from the sharp fall in the value of the pound since the Brexit vote on 23 June.
Merlin said: “Many of our city centre attractions have experienced volatile trading patterns as a result of wider security concerns that have affected domestic and international visitation.
“This continues to have a significant impact on Midway London, the largest division within the operating group, where visitor volumes have also yet to see any material benefit of sterling weakening to current levels.”
The twin threats of terrorism and the Zika virus are weighing on tourism in Florida in 2016, Merlin said, hitting visitor numbers at its Legoland attraction in the sunshine state.
George Salmon, equity analyst at Hargreaves Lansdown, said trading in the group’s key summer period had disappointed, but prospects over the longer term should be better. “Today’s headwinds are hopefully short term in nature and the group is set to continue expanding, with 40 new attractions set to be added by 2020.”
