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.
Six Flags Dubai on hold as DXB sees finance options evaporate POSTED 07 Feb 2019. BY Andy Knaggs 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 POSTED 16 Jan 2019. BY Andy Knaggs 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.
Global luxury hospitality brand, Six Senses, has partnered with longevity healthcare provider,
HUM2N, to launch a clinic at Six Senses London, at The Whiteley.
Premium London health club, KX Chelsea, will imminently unveil its most significant
redevelopment since its launch in 2002 to create an integrated wellness model combining
training, recovery and relaxation.
Researchers in the US have identified an antibody which could greatly reduce the loss of lean
muscle mass in people who are taking weight-loss medications.
Elevate is set to celebrate its 10th anniversary in style this June, with organisers
confirming the event’s largest-ever drinks reception as registrations continue to run more
than 10% ahead of last year. [more...]
One of the biggest mistakes the fitness industry still makes is advertising almost
exclusively to people who already look and live like gym members. [more...]
+ More featured suppliers
COMPANY PROFILES
Precor
Precor promises precision-quality products with steadfast reliability that are inspired by exerciser [more...]
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.
Six Flags Dubai on hold as DXB sees finance options evaporate POSTED 07 Feb 2019. BY Andy Knaggs 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 POSTED 16 Jan 2019. BY Andy Knaggs 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.
Global luxury hospitality brand, Six Senses, has partnered with longevity healthcare provider,
HUM2N, to launch a clinic at Six Senses London, at The Whiteley.
Premium London health club, KX Chelsea, will imminently unveil its most significant
redevelopment since its launch in 2002 to create an integrated wellness model combining
training, recovery and relaxation.
Researchers in the US have identified an antibody which could greatly reduce the loss of lean
muscle mass in people who are taking weight-loss medications.
Crunch Fitness has announced the launch of Crunch Reform Pilates – its own reformer concept
designed to bring this fast growing, but rather expensive, modality into the mainstream.
Elevate is set to celebrate its 10th anniversary in style this June, with organisers
confirming the event’s largest-ever drinks reception as registrations continue to run more
than 10% ahead of last year. [more...]
One of the biggest mistakes the fitness industry still makes is advertising almost
exclusively to people who already look and live like gym members. [more...]
+ More featured suppliers
COMPANY PROFILES
Precor Precor promises precision-quality products with steadfast reliability that are inspired by exerciser [more...]
