Merlin Entertainments has written down the value of its Madame Tussauds business by £262 million, reflecting continued pressure on visitor numbers and changing consumer behavior across key global markets.
The deterioration comes as the group, which also operates Alton Towers, Legoland and the London Eye, continues to face a difficult macroeconomic environment, particularly in North America and Asia, where demand continues to weaken.
Chief executive Fiona Eastwood said the write-down was a statistical adjustment rather than a reflection of the product’s long-term performance.
“It is still a very successful product, it is just to see that we have lost the great capacity we had at the time,” he said, stressing that this action does not affect the financial situation of the company.
More than any of Merlin’s other attractions, Madame Tussauds continues to feel the lingering effects of the Covid-19 pandemic. The chain of wax museums, which has been operating for almost 190 years, relies heavily on international tourism – a sector that has not yet fully recovered in key cities such as London, New York and Sydney.
This has contributed to a broad decline in footfall across the group. Merlin reported a total of 60.5 million visitors by 2025, down 2.3 million compared to the previous year.
While spending per visitor increased, helping to offset another impact, revenue fell by 2.8 per cent to £1.99 billion.
Performance varies greatly by region. North America was the weakest market, with core sales down 8 per cent to £577 million, driven by increased competition and aggressive discounting across the attractions sector.
In Europe, revenue rose slightly by 1 percent, although the UK lagged behind, with sales down 3.5 percent and visitor numbers down 6.5 percent. Merlin says this is due to weak demand in London, where fewer international visitors and a shift to free attractions have weighed on attendance.
In contrast, Asia-Pacific delivered strong growth, with visitor numbers up 5.3 per cent and revenue up 4.5 per cent to £285 million. The region also saw a sharp 120 percent increase in underlying operating profit, supported by strong performance at Legoland’s Japan and Shanghai resorts.
In response to the decline, Merlin is investing in new ideas to revitalize Madame Tussauds and attract a wider audience. Among the plans for 2026 is an immersive Jumanji-themed experience, which will be launched in major destinations including New York, Hollywood, Las Vegas and Sydney.
Eastwood said the strategy builds on Merlin’s track record of developing attractions linked to popular culture and entertainment.
“We are focused on rebranding in line with changing consumer trends,” he said, pointing to the success of previous themed themes across the group’s portfolio.
The write-downs come as part of a wider restructuring plan aimed at improving efficiency and profitability. Over the past year, Merlin has consolidated its operations, consolidating its three divisions, which include 130 attractions, into a more streamlined structure.
The changes have already led to over 1,000 job cuts and delivered £37 million in savings, with £50 billion expected to be saved every year.
The company reported signs of improvement in the second half of 2025, with adjusted profit rising 6.5 percent after a weak first half. Overall, profits grew slightly on a constant currency basis over the year.
However, the group remains in a loss-making position, posting a pre-tax loss of £426 million, although an improvement on the £492 million loss recorded last year. Total debt stands at £3.8 billion, most of which stems from its 2019 private equity transaction.
For Merlin, the challenge now is to balance cost control and investment in new experiences that could revive demand, especially for legacy brands like Madame Tussauds.
While the write-up reflects market realities, the group is betting that innovation, efficiency and a gradual recovery in foreign tourism will help restore momentum.
As consumer preferences evolve and competition intensifies, the success of that strategy will determine whether Madame Tussauds can regain its position as a global attraction, or continue to face pressure in a rapidly changing entertainment landscape.
