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.
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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.
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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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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.
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Two leading museum operators in the UK have partnered with an augmented reality specialist to present holographic exhibits and experiences for students around the world.
John McAslan + Partners-designed M7 cultural hub and museum opens in Doha
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North American and Japanese attractions dominate 2021 Thea Awards
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Red Raion

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Polin was founded in Istanbul in 1976. Polin has since grown into a leading company in the waterpa [more...]
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IDEATTACK is a full-service planning and design company with headquarters in Los Angeles. [more...]
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As we emerge from the clutches of Covid and our freedom of movement is fully restored, giving the gift of an experience is more appealing than ever before. [more...]
VIDEO GALLERY

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

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+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

01-07 Dec 2022

World Leisure Congress 2022

tbc, Dunedin, New Zealand
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