Madame Tussauds Value Written Down by £262 Million

The group behind Alton Towers and the London Eye has reported a £262 million writedown in the value of its Madame Tussauds attractions. This reduction occurs amid a decline in visitor numbers, as the 190-year-old wax museum struggles with a challenging macroeconomic environment, particularly in North America and Asia.

Merlin Entertainments cited the writedown as a response to the changing dynamics in consumer behaviour. Fiona Eastwood, chief executive of Merlin, stated that while Madame Tussauds remains a successful brand, operational performance has not matched previous levels. The writedown is a recognition of lost volume, rather than a direct impact on cash flow.

Madame Tussauds, including its locations in London, New York, and Sydney, has been notably affected by the lingering consequences of the Covid-19 pandemic. All three sites heavily depend on international tourism, which has yet to fully recover.

To address these challenges, Merlin is focusing on revitalising the brand this year. This includes plans to introduce new concepts and immersive experiences, such as a Jumanji-themed ride. The new attraction will debut in July at Madame Tussauds locations in New York, Hollywood, Las Vegas, and Sydney.

Merlin Entertainments reported a decrease of 2.3 million visitors across the group in 2025. The overall decline in guest numbers has been partly mitigated by an increase in per-capita spending by those who attended the attractions. However, total revenues for the year fell by 2.8 per cent to £1.99 billion.

The company’s North American sector saw underlying sales decline by 8 per cent, primarily due to the introduction of competitive attractions and significant industry-wide discounting. The Legoland resorts in California and Florida experienced particularly low visitor numbers as a result.

Despite these difficulties, there was a slight growth trend in Europe, where revenues increased by 1 per cent. In the UK, however, sales decreased by 3.5 per cent due to a 6.5 per cent drop in visitor numbers. This trend is most pronounced in London, where lower international arrivals and the popularity of free attractions have contributed to the decline.

The Asia Pacific region stood out with a 5.3 per cent increase in guest levels, which boosted sales by 4.5 per cent on a constant currency basis. This growth can be attributed to strong performance at the Legoland resorts in Japan and Shanghai, leading to a significant increase in operating profit.

Eastwood has undertaken a restructuring initiative aimed at optimising the company’s operational model, consolidating its three divisions into one group. This change has resulted in over 1,000 job cuts but has also yielded £37 million in cash savings, with an expectation of achieving further annualised savings of £50 million through ongoing cost-cutting measures.

During the second half of the last year, Merlin reported a 6.5 per cent growth in underlying adjusted profits, contrasting with a decline of 9.2 per cent in the initial half. The group’s pre-tax losses for 2025 were £426 million, a slight improvement from the previous year, which reflected ongoing financial pressure from inherited debt following Merlin’s transition to private ownership in 2019.