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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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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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Jobs . News . Products . Magazine
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
Poor ticket sales force closure of Portland Science Center
The city of Portland in Maine, US, has lost its science centre after just three years of operation, owing to poor ticket sales.
National Museums Liverpool names Laura Pye as its new director
Laura Pye has been named director of National Museums Liverpool (NML), with the current head of culture for Bristol City Council to take up her new position in August.
Museum Index: Louvre regains top spot as Paris recovers and London dips
France's museums have shown significant recovery following a tumultuous 2016, with the Louvre reclaiming top spot as the world's most visited museum in the latest TEA/AECOM Museum Index.
Theme Index: Success in Europe as waterpark attendance tops 30 million
Waterpark attendance has for the first time broken 30 million visitors among the world's top 20, with particularly strong performance in some of Europe's top waterparks, according to the TEA/AECOM Theme Index.
+ More news   
LATEST JOBS
Rheolwr Bwyd a Diod
Wales Millennium Centre
Salary: £40,000 - £45,000
Job location: Millennium Centre, Cardiff, Wales, UK
Head of Food and Beverage
Wales Millennium Centre
Salary: £40,000 - £45,000
Job location: Millennium Centre, Cardiff, Wales, UK
Visitor Experience Officer
National Trust
Salary: £19,349 pa
Job location: Greater Manchester, UK
Country Parks Visitor Services Manager
Eastleigh Borough Council
Salary: within the range £40,411 to £43,779 pa
Job location: Eastleigh District, UK
Visitor Experience Manager
Woburn Abbey
Salary: Competitive Salary & Benefits
Job location: Woburn Abbey, Milton Keynes, UK
Games
West Midland Safari and Leisure Park
Salary: £22,000 - £25,000
Job location: Worcs, UK
+ More jobs  
 


ADVERTISE . CONTACT US

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

©Cybertrek 2018

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