Merlin Entertainments has written down the value of its Madame Tussauds business by £262m, reflecting ongoing pressure on visitor numbers and changing consumer behavior in key global markets.
The impairment comes as the group, which also operates Alton Towers, Legoland and the London Eye, continues to contend with a difficult macroeconomic environment, particularly in North America and Asia, where demand remains subdued.
Chief executive Fiona Eastwood said the write-down was an accounting adjustment rather than a reflection of the brand’s long-term viability.
“It’s still a very successful brand, we just recognize that we’ve lost some of the volume that we had in its heyday,” she said, stressing that the move has no impact on the company’s cash position.
More than any other Merlin attraction, Madame Tussauds continues to feel the ongoing impact of the Covid-19 pandemic. The wax museum chain, which has existed for nearly 190 years, relies heavily on international tourism – a segment that has not yet fully recovered in major cities such as London, New York and Sydney.
This has contributed to a broader decline in footfall across the group. Merlin reported total visitors of 60.5 million in 2025, a decrease of 2.3 million compared to the previous year.
While spending per visitor increased, helping to offset some of the impact, total revenue still fell by 2.8 percent to £1.99 billion.
Performance varied significantly by region. North America was the weakest market, with underlying sales down 8 percent to £577 million, reflecting increasing competition and aggressive discounting across the attractions sector.
In Europe, revenue rose slightly by 1 percent, although the UK lagged behind with a 3.5 percent decline in sales and a 6.5 percent drop in visitor numbers. Merlin attributed this to weaker demand in London, where fewer international tourists and a shift towards free attractions weighed on visitor numbers.
In contrast, the Asia Pacific region recorded strong growth, with visitor numbers increasing by 5.3 percent and revenue increasing by 4.5 percent to £285 million. The region also saw a significant 120 percent increase in underlying operating profit, supported by strong performance from Legoland resorts in Japan and Shanghai.
In response to the downturn, Merlin is investing in new concepts to revitalize Madame Tussauds and attract a wider audience. Initiatives planned for 2026 include an immersive Jumanji experience to be rolled out in key locations such as New York, Hollywood, Las Vegas and Sydney.
Eastwood said the strategy builds on Merlin’s track record of developing innovative attractions related to pop culture and entertainment franchises.
“We are focused on reinvigorating the brand in line with changing consumer trends,” she said, citing the success of previous themed experiences across the group’s portfolio.
The writedown is part of a broader restructuring program to improve efficiency and profitability. Over the past year, Merlin has consolidated its operations, combining its three divisions, comprising 130 individual attractions, into a leaner structure.
The changes have already led to more than 1,000 job losses and saved £37 million. A further £50 million in annual savings are expected.
The company reported signs of improvement in the second half of 2025, with underlying adjusted profit rising 6.5 percent after a weaker first half. Overall, profits increased slightly over the course of the year on a constant exchange rate basis.
However, the group remains in a loss-making position, posting a pre-tax loss of £426m, although an improvement on the loss of £492m last year. Net debt stands at £3.8 billion, much of which is due to the take-private transaction in 2019.
For Merlin, the challenge now is to balance cost discipline with investment in new experiences that can drive demand, particularly for long-established brands such as Madame Tussauds.
While the writedown reflects current market realities, the group is betting that innovation, operational efficiency and a gradual recovery in international tourism will help restore momentum.
As consumer preferences evolve and competition increases, the success of this strategy will determine whether Madame Tussauds can regain its position as a flagship attraction worldwide or continue to face pressure in a rapidly changing leisure landscape.
