DXB records US$232.8m loss as company implements cost-cutting measures at theme parks | attractionsmanagement.com news
GET ATTRACTIONS MANAGEMENT
magazine
Yes! Send me the FREE digital edition of Attractions Management and the FREE weekly Attractions Management ezines and breaking news alerts!
Not right now, thanksclose this window
POST YOUR JOB ONLINE
Free ezine/digital edition sign up
Jobs   News   Features   Video    Products   Company profilesProfiles   Magazine   Handbook   Advertise  
NEWS
DXB records US$232.8m loss as company implements cost-cutting measures at theme parks
POSTED 11 Feb 2020 . BY Andy Knaggs

Our focus is now on delivering EBITDA profitability on a full year basis
– Mohamed Almulla
DXB Entertainments, which runs the Legoland, Bollywood and Motiongate theme parks in Dubai, says it sees encouraging signs in its latest financial results, despite reduced attendances in 2019 compared to 2018.

The fourth quarter of 2019 saw the company make its first-ever quarterly profit before earnings of AED2m (US$540,000, €500,000, £420,000), while earnings for the full year were a loss of AED149m (US$40.6m, €37.2m, £31.4m) – a 38 per cent improvement on 2018.

DXB has put the improved numbers down to an efficiency and cost optimisation programme, which was implemented following previous troubling results, with the company saying that it expects to realise further gains from these measures in 2020. While visitor numbers were down by 7 per cent on the year to just under 2.6 million people, average hotel occupancy rates increased by 3 per cent to 62 per cent.

Adjusted net loss for the complete year was AED855m (US$232.8m, €213.3m, £180m), an improvement of 15 per cent on 2018's figures.

2020 is shaping up to be an important year for DXB, with an enhancement plan for Motiongate and Bollywood Parks Dubai bringing in a dozen new rides by the second half of the year. A 250-bedroom Legoland Hotel is on target for delivery in the first half. DXB implemented a new pricing strategy in October 2019 to encourage multi-park visitation, improve yields and target new market segments. 2020 is also the year of the Dubai Expo, which is expected to significantly boost tourism across the region when it opens on 20 October.

"Our efficiency programme is delivering good results, with year-on-year savings in operating costs of AED172m (US$46.8m, €42.9m, £36.2m) in Financial Year 2019, with further savings to be realised in 2020," said Mohamed Almulla, CEO and managing director of DXB Entertainments.

"Our focus is now on delivering EBITDA profitability on a full-year basis by achieving revenue growth, specifically through initiatives to drive visitation from our core international markets and through hotel strategy."

The completion of the Legoland Hotel will give DXB an on-site room inventory of 1,300 keys, and Almulla said the introduction of further hotel rooms to the destination will be a "key driver of growth in international visitation, facilitating the bundling of our theme park tickets with hotel stays and ultimately increasing length of stay, visitation and dwell times".

Given the seasonal nature of its business, Almulla said the business expects profitability in Q1 and Q4 2020, but losses in Q2 and Q3.
Sign up here to get the Attractions Management weekly ezine and every issue of Attractions Management magazine free on digital.
RELATED STORIES
Losses shrink for DXB as operator strives to turn a profit for struggling parks portfolio


Preliminary financial results for 2018 released by Dubai theme park operator DXB Entertainments have shown reduced losses, greater visitor numbers, and better operating costs compared to 2017.
Six Flags Dubai on hold as DXB sees finance options evaporate


DXB Entertainments – the owner of Dubai Parks and Resorts – has slammed the brakes on its under- development Six Flags-branded theme park in Dubai, citing withdrawal of financing as the reason behind the move.
Significant visitor increase for Dubai Park and Resorts


Dubai Parks and Resorts has reported a rise of 22 per cent in visitors to its attractions in 2018 compared to the previous year, registering almost 2.8 million visits to its three theme parks (Motiongate, Bollywood and Legoland Dubai), the Legoland Water Park, two hotels and a themed retail and dining destination.
DXB Entertainments reports dip in profits for Q3 2018


UAE-based Operator DXB Entertainments has posted quarter-on-quarter losses in revenue and gross profit for Q3 2018.
MORE NEWS
UK Budget 2021: Business rates cut by half for health clubs, leisure and hospitality
Health clubs, gyms, hotels, pubs and other leisure businesses will receive a 50 per cent cut in business rates over the next year.
Winners of first-ever Surf Park Awards revealed
Australian surf park operator URBNSurf and wave generating specialist Wavegarden are among the winners of the inaugural Surf Park Awards.
Little Amal, a puppet of a refugee girl, has walked 5,000km across Europe
A puppet of a refugee girl has 'walked' across Europe on a 5,000km (3,100m) journey, with the help of eleven puppeteers and is now nearing the end of her journey from Syria to the UK.
Eden Project Qingdao reaches construction milestone
Construction work on the Eden Project Qingdao visitor attraction in China has reached a major milestone.
+ More news   
LATEST JOBS
Commercial Operations Manager
Heritage Great Britain
Salary: £38,000 - £40,000
Job location: Land's End, Cornwall , United Kingdom
Assistant Premises Managers x 2
Chesterfield Borough Council
Salary: c£25,250 FTE
Job location: Chesterfield, Derbyshire , United Kingdom
+ More jobs  

COMPANY PROFILES
DJW

David & Lynn Willrich started the Company over thirty years ago, from the Audio Visual Department [more...]
iPlayCO

iPlayCo was established in 1999. [more...]
Painting With Light

By combining lighting, video, scenic and architectural elements, sound and special effects we tell s [more...]
Triotech

Triotech was established in 1999. The company is based in Montreal, Canada and has additional offi [more...]
+ More profiles  
FEATURED SUPPLIER

EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain. [more...]
VIDEO GALLERY

Proslide Tech Inc - ProSlide | Atlantis Dubai
More videos:
+ More videos  

CATALOGUE GALLERY
 
+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

24-25 Nov 2021

Scotland’s National Tourism Industry Conference

EICC, Edinburgh, United Kingdom
01-07 Dec 2022

World Leisure Congress 2022

tbc, Dunedin, New Zealand
+ More diary  
LATEST ISSUES
+ View Magazine Archive

Attractions Management

2021 issue 3


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2021 issue 2


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2021 issue 1


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2020 issue 1


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management News

06 Apr 2020 issue 153


View on turning pages
Download PDF
View archive
FREE digital subscription
Print subscription

Attractions Handbook

2019


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
ATTRACTIONS MANAGEMENT
ATTRACTIONS MANAGEMENT NEWS
ATTRACTIONS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021
Jobs    News   Products   Magazine
NEWS
DXB records US$232.8m loss as company implements cost-cutting measures at theme parks
POSTED 11 Feb 2020 . BY Andy Knaggs
Our focus is now on delivering EBITDA profitability on a full year basis
– Mohamed Almulla
DXB Entertainments, which runs the Legoland, Bollywood and Motiongate theme parks in Dubai, says it sees encouraging signs in its latest financial results, despite reduced attendances in 2019 compared to 2018.

The fourth quarter of 2019 saw the company make its first-ever quarterly profit before earnings of AED2m (US$540,000, €500,000, £420,000), while earnings for the full year were a loss of AED149m (US$40.6m, €37.2m, £31.4m) – a 38 per cent improvement on 2018.

DXB has put the improved numbers down to an efficiency and cost optimisation programme, which was implemented following previous troubling results, with the company saying that it expects to realise further gains from these measures in 2020. While visitor numbers were down by 7 per cent on the year to just under 2.6 million people, average hotel occupancy rates increased by 3 per cent to 62 per cent.

Adjusted net loss for the complete year was AED855m (US$232.8m, €213.3m, £180m), an improvement of 15 per cent on 2018's figures.

2020 is shaping up to be an important year for DXB, with an enhancement plan for Motiongate and Bollywood Parks Dubai bringing in a dozen new rides by the second half of the year. A 250-bedroom Legoland Hotel is on target for delivery in the first half. DXB implemented a new pricing strategy in October 2019 to encourage multi-park visitation, improve yields and target new market segments. 2020 is also the year of the Dubai Expo, which is expected to significantly boost tourism across the region when it opens on 20 October.

"Our efficiency programme is delivering good results, with year-on-year savings in operating costs of AED172m (US$46.8m, €42.9m, £36.2m) in Financial Year 2019, with further savings to be realised in 2020," said Mohamed Almulla, CEO and managing director of DXB Entertainments.

"Our focus is now on delivering EBITDA profitability on a full-year basis by achieving revenue growth, specifically through initiatives to drive visitation from our core international markets and through hotel strategy."

The completion of the Legoland Hotel will give DXB an on-site room inventory of 1,300 keys, and Almulla said the introduction of further hotel rooms to the destination will be a "key driver of growth in international visitation, facilitating the bundling of our theme park tickets with hotel stays and ultimately increasing length of stay, visitation and dwell times".

Given the seasonal nature of its business, Almulla said the business expects profitability in Q1 and Q4 2020, but losses in Q2 and Q3.
Sign up here to get the Attractions Management weekly ezine and every issue of Attractions Management magazine free on digital.
RELATED STORIES
Losses shrink for DXB as operator strives to turn a profit for struggling parks portfolio


Preliminary financial results for 2018 released by Dubai theme park operator DXB Entertainments have shown reduced losses, greater visitor numbers, and better operating costs compared to 2017.
Six Flags Dubai on hold as DXB sees finance options evaporate


DXB Entertainments – the owner of Dubai Parks and Resorts – has slammed the brakes on its under- development Six Flags-branded theme park in Dubai, citing withdrawal of financing as the reason behind the move.
Significant visitor increase for Dubai Park and Resorts


Dubai Parks and Resorts has reported a rise of 22 per cent in visitors to its attractions in 2018 compared to the previous year, registering almost 2.8 million visits to its three theme parks (Motiongate, Bollywood and Legoland Dubai), the Legoland Water Park, two hotels and a themed retail and dining destination.
DXB Entertainments reports dip in profits for Q3 2018


UAE-based Operator DXB Entertainments has posted quarter-on-quarter losses in revenue and gross profit for Q3 2018.
MORE NEWS
UK Budget 2021: Business rates cut by half for health clubs, leisure and hospitality
Health clubs, gyms, hotels, pubs and other leisure businesses will receive a 50 per cent cut in business rates over the next year.
Winners of first-ever Surf Park Awards revealed
Australian surf park operator URBNSurf and wave generating specialist Wavegarden are among the winners of the inaugural Surf Park Awards.
Little Amal, a puppet of a refugee girl, has walked 5,000km across Europe
A puppet of a refugee girl has 'walked' across Europe on a 5,000km (3,100m) journey, with the help of eleven puppeteers and is now nearing the end of her journey from Syria to the UK.
Eden Project Qingdao reaches construction milestone
Construction work on the Eden Project Qingdao visitor attraction in China has reached a major milestone.
World’s first UNESCO digital trail launches in Scotland
Scotland's Unesco World Heritage Sites are being brought together through the world’s first ever UNESCO digital trail.
Jakob Wahl appointed IAAPA's chief operating officer
Jakob Wahl has been named executive VP and chief operating officer of global attractions industry body IAAPA.
+ More news   
 
COMPANY PROFILES
DJW

David & Lynn Willrich started the Company over thirty years ago, from the Audio Visual Department [more...]
iPlayCO

iPlayCo was established in 1999. [more...]
Painting With Light

By combining lighting, video, scenic and architectural elements, sound and special effects we tell s [more...]
Triotech

Triotech was established in 1999. The company is based in Montreal, Canada and has additional offi [more...]
+ More profiles  
FEATURED SUPPLIER

EMS personal training: shockingly simple
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the next goal to someone who dislikes all activity due to chronic back pain. [more...]
VIDEO GALLERY

Proslide Tech Inc - ProSlide | Atlantis Dubai
More videos:
+ More videos  

CATALOGUE GALLERY
+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

24-25 Nov 2021

Scotland’s National Tourism Industry Conference

EICC, Edinburgh, United Kingdom
01-07 Dec 2022

World Leisure Congress 2022

tbc, Dunedin, New Zealand
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
ATTRACTIONS MANAGEMENT NEWS
ATTRACTIONS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS