DXB records US$232.8m loss as company implements cost-cutting measures at theme parks | attractionsmanagement.com news
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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.
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.
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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.
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UAE-based Operator DXB Entertainments has posted quarter-on-quarter losses in revenue and gross profit for Q3 2018.
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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.
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
Texas Kalahari Water Park scheduled for November 2020 opening
A new US$550m (€509m, £426m) African-themed water park and resort from Kalahari Resorts & Conventions is due to open in Round Rock, Texas, in November 2020.
Northern Ireland's The Gobbins in line for £11m development
Plans for an £11m (US$14.2m, €13m) extension to The Gobbins, a famous cliff-face path at Islandmagee, County Antrim, Northern Ireland, have made significant progress, according to the local borough council.
London's V&A Museum of Childhood to close for two-year redevelopment
Creating an "unforgettable first museum experience for children" is the aim of the V&A Museum of Childhood in London, which has announced it will close in May 2020 to undergo a two-year, £13m (US$16.9m, €15.7m) transformation.
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Founded in 2014, Red Raion is the CGI studio specialized in media based attractions. [more...]
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Triotech was established in 1999. The company is based in Montreal, Canada and has additional offi [more...]
WhiteWater

WhiteWater was born in 1980 to create places where families unite and make joyful lasting memories [more...]
RMA Ltd

RMA Ltd is a one-stop global company that can design, build and produce from a greenfield site upw [more...]
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Global Solutions for Clothing creates award-winning costumes
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Red Raion - Trailer Pinocchio - A Modern Tale VR
Red Raion is the CGI studio specialized in media based attraction. Find out more...
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+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

23-25 Mar 2020

MuseumNext Europe

Edinburgh Festival Hub, Edinburgh,
23-25 Mar 2020

Dubai Entertainment Amusement and Leisure Exhibition (DEAL)

Dubai World Trade Centre, Dubai, United Arab Emirates
+ More diary  
 


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

©Cybertrek 2020

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