As part of its strategy to roll out indoor entertainment centers, Parques Reunidos opened 3 centers in Spain in 2017 and 2018 -Atlantis Aquarium in Madrid’s Intu Xanadú shopping mall and two Nickelodeon Adventure centers in Murcia’s Thader shopping mall and Madrid’s Intu Xanadú shopping mall. The Company also reached agreements to develop four additional centers in Madrid, London, Lisbon and New York.
The results obtained so far in the three operating centers are below the expected return objectives. Therefore, the Company is implementing measures to save costs and improve efficiency aimed at increasing its profitability.
In addition, the Company has reviewed its strategy to roll out indoor entertainment centers and the main investment hypotheses. As a result, it has decided to pursue its Nickelodeon Lakeside project in London, which is expected to open in the second half of 2019, and to terminate the agreements relating to the opening of a Nickelodeon center in Lisbon and Lionsgate-themed centers in Príncipe Pío in Madrid and Times Square in New York (pictured above). The estimated cost of such termination amounts to €42 million.
This review is consistent with the Company’s pursuit of a strict financial discipline, creation of value for shareholders and achievement of profitable and sustainable growth.
Parques Reunidos will continue to explore opportunities to increase its diversification, mitigate the seasonality nature of the business and limit the impact of external factors in our business, such as the weather.