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.
Losses for the second quarter grew by almost six times, with AED286.2m (US$77.9m, €66.3m, £55.9m) losses compared to AED41.3m (US$11.2m, €9.6m, £8.6m) for the same period in 2016.
Revenue for the quarter was AED119.6m (US$32.6m, €27.7m, £25m), down from AED159.9m (US$43.5m, €37m, £33.5m) in the first quarter of the year shortly after the staggered launch of Dubai Parks and Resorts.
As a result, DXB has announced a new business strategy, introducing three new business units to better manage its existing assets.
Divided into theme parks, family entertainment centres (FECs), and retail and hospitality, the company says each division will be led by a regional industry specialist “with proven management experience”.
According to DXB, a similar third quarter is expected thanks to the extremely hot weather during the period, though it expects growth in the final three months of the year when temperatures lower.
As part of its reorganisation, DXB has also announced a deal with Meraas Leisure and Entertainment to manage assets including Hub Zero, Mattel Play Town and Roxy Cinemas among others, with the operator intending to “seek further opportunities to manage contemporary leisure and entertainment offerings in the UAE.”
“We are re-organising the business into three operating business units which aligns DXB with our strategic growth objectives,” said DXB chief executive, Mohamed Almulla. “The new structure and the industry specific talent we are bringing on board will help to drive value across DXB’s leisure and entertainment portfolio.
“We already own a great asset in the form of Dubai Parks and Resorts. With the addition of Meraas’ leisure and entertainment portfolio, DXBE will be able to identify and build significant cross-marketing synergies and additional revenue from the coordinated management of our diversified portfolio of assets.”
