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DXB plans US$1.15bn restructuring following losses increase for 2017
POSTED 13 Feb 2018 . BY Tom Anstey
DXB Entertainments – the operator of Dubai Parks and Resorts – is planning to restructure a debt of US$1.15bn (€931m, £827m) as the attraction continues to struggle after missing expectations on visitor numbers.

According to multiple reports, the operator is planning to reschedule a loan agreement signed in 2014, and is requesting that repayments are frozen for a period of three years. A spokesperson for the company said that it “periodically” reviews its capital structure to ensure the “right funding terms to meet our strategic objectives”.

For the year, DXB posted losses of US$305m (€246.9m, £219.2m) – more than double that of its launch year in 2016.

Despite visitor numbers rising and a new cost-cutting strategy being introduced, losses were heavy for 2017, even higher than the US$244m (€197.5m, £175.3m) loss predicted by financial analysts. Revenue increased significantly from US$20.7m (€16.7m, £14.9m) to US$150.3m (€121.7m, £108m), though the initial figures only accounted for the final three months of 2016 when its Lego, Bollywood and Hollywood-themed parks first opened.

“The strategy for 2017 was focused on driving visits to the theme parks with a revised pricing strategy and targeted marketing to Gulf residents and key international source markets,” said Mohamed Almulla, managing director and CEO of DXB Entertainments.

“The company delivered operational cost savings during 2017 through realising operational synergies and cost optimisation,” he added.

Visitation has trended positively for DXB, with 2.3 million visiting in 2017 and the year’s last quarter showing a marked improvement on the previous three months, with a 66 per cent increase in visitor numbers to 796,000 visits, boosted by the launch of its new Hunger Games attraction at Motiongate Dubai. The rise was anticipated, however with Dubai’s fourth quarter typically associated with the region’s high tourist season.
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World of the Hunger Games comes to Motiongate Dubai


The world’s first Hunger Games theme park attraction has opened to the public in Dubai, as Lionsgate and DXB Entertainments celebrated the highly anticipated launch at the operator’s recently opened Motiongate park in the UAE.
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Almost a year on from the launch of its multi-billion pound theme park and resort development in Dubai, operator DXB Entertainments has announced a significant losses for the second quarter of 2017.
DXB Entertainments names Almulla as new CEO following Al Nuaimi departure


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DXB Entertainments, the operator of Dubai Parks and Resorts, has said it will cut operating costs by 20 per cent this year after posting losses of AED292m (US$79.5m, €73.1m, £61.8m) in the first quarter of 2017.
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NEWS
DXB plans US$1.15bn restructuring following losses increase for 2017
POSTED 13 Feb 2018 . BY Tom Anstey
DXB Entertainments – the operator of Dubai Parks and Resorts – is planning to restructure a debt of US$1.15bn (€931m, £827m) as the attraction continues to struggle after missing expectations on visitor numbers.

According to multiple reports, the operator is planning to reschedule a loan agreement signed in 2014, and is requesting that repayments are frozen for a period of three years. A spokesperson for the company said that it “periodically” reviews its capital structure to ensure the “right funding terms to meet our strategic objectives”.

For the year, DXB posted losses of US$305m (€246.9m, £219.2m) – more than double that of its launch year in 2016.

Despite visitor numbers rising and a new cost-cutting strategy being introduced, losses were heavy for 2017, even higher than the US$244m (€197.5m, £175.3m) loss predicted by financial analysts. Revenue increased significantly from US$20.7m (€16.7m, £14.9m) to US$150.3m (€121.7m, £108m), though the initial figures only accounted for the final three months of 2016 when its Lego, Bollywood and Hollywood-themed parks first opened.

“The strategy for 2017 was focused on driving visits to the theme parks with a revised pricing strategy and targeted marketing to Gulf residents and key international source markets,” said Mohamed Almulla, managing director and CEO of DXB Entertainments.

“The company delivered operational cost savings during 2017 through realising operational synergies and cost optimisation,” he added.

Visitation has trended positively for DXB, with 2.3 million visiting in 2017 and the year’s last quarter showing a marked improvement on the previous three months, with a 66 per cent increase in visitor numbers to 796,000 visits, boosted by the launch of its new Hunger Games attraction at Motiongate Dubai. The rise was anticipated, however with Dubai’s fourth quarter typically associated with the region’s high tourist season.
RELATED STORIES
World of the Hunger Games comes to Motiongate Dubai


The world’s first Hunger Games theme park attraction has opened to the public in Dubai, as Lionsgate and DXB Entertainments celebrated the highly anticipated launch at the operator’s recently opened Motiongate park in the UAE.
DXB reshapes business following poor second quarter


Almost a year on from the launch of its multi-billion pound theme park and resort development in Dubai, operator DXB Entertainments has announced a significant losses for the second quarter of 2017.
DXB Entertainments names Almulla as new CEO following Al Nuaimi departure


DXB Entertainments, owner of Dubai Parks and Resorts, has named Arab Media Group (AMG) chief executive Mohamed Almulla as its new CEO.
DXB cutting costs by 20 per cent after posting Q1 loss


DXB Entertainments, the operator of Dubai Parks and Resorts, has said it will cut operating costs by 20 per cent this year after posting losses of AED292m (US$79.5m, €73.1m, £61.8m) in the first quarter of 2017.
MORE NEWS
OPEN Architecture design soulful "Chapel of Sound" in China
Chinese architecture practice OPEN have unveiled renderings of the Chapel of Sound – a cavernous amphitheatre currently under construction north of Beijing, outside the city of Chengde.
Trouble for Six Flags as multiple international projects face delay
Six flags chief Jim Reid-Anderson has revealed that changes in government are stalling the operator's Chinese projects, while there are "no assurances" as to the outcome of the operator's on- hold Dubai development.
Arts Council’s new diversity report shows BME representation below English average
Only 5 per cent of staff members are not white at Arts Council England (ACE) major partner museums (MPMs) while 16 per cent of the working age population are from black and minority ethnic (BME) backgrounds in England, a new report from the organisation has found.
Snapchat creates virtual art gallery for Black History Month
Communications app Snapchat has created an online virtual gallery in celebration of Black History Month, showcasing the work of black millennial artists.
+ More news   
LATEST JOBS
Group Travel Trade Manager
The Royal Mint
Salary: Competitive Salary and Benefits
Job location: Llantrisant, Pontyclun, UK
Commercial Operations Director
The National Museum of the Royal Navy
Salary: £60,000 circa per annum
Job location: Portsmouth, UK
Theme Park Resort Duty Managers
Gulliver's Theme Park
Salary: Competitive Salary and Benefits
Job location: Rother Valley, Rotherham, South Yorkshire, UK
Commercial Sales Manager
Mary Rose Trust
Salary: Competitive Salary and Benefits
Job location: Portsmouth, UK
Trainee Manager Programme
Gulliver's Theme Park
Salary: Competitive Salary and Benefits
Job location: South Yorkshire, UK
Restaurant and Bar Team Leader
Alton Towers Theme Park
Salary: Competitive
Job location: Stoke-on-Trent, UK
+ More jobs  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2019

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