Theme park operator in recovery mode
DXB Entertainments says it is seeing decreasing losses and growing footfall
DXB Entertainments said yesterday that it had seen an improvement in visitor numbers, revenue and EBITDA loss during the first three months of 2018.
Financial results for first quarter showed how the theme park operator, which owns Dubai Parks and Resorts, increased visits from 586,355 in 2017 to 851,013 for the same period in 2018.
Nevertheless, the company’s revenue only increased by Dh13 million in the quarter, compared to the same period in 2017, from Dh160 million to Dh173 million.
The company also saw a 64 per cent improvement in earnings before interest, tax, depreciation and amortisation (Ebitda) losses, compared to the last quarter of 2017.
In a statement on its results, DXB Entertainments attributed this paring of losses to visitation, revenue growth and cost efficiencies.
And it was not just the theme parks that saw an uplift in traffic: Lapita, the Marriottmanaged hotel located on the grounds of Dubai Parks and Resorts, saw its average occupancy rise to 62 per cent in the first quarter, compared to 22 per cent for the same period last year.
Dubai Parks and Resorts opened last year to disappointing footfall, but has since seen numbers rise.
Positive performance
Mohammad Al Mulla, CEO and managing director of DXB Entertainments, said in a statement: “We are pleased to announce further growth in our revenue and visitor numbers, a strong signal that our revised pricing and marketing strategy is delivering results.”
The top executive added that the company’s focus on cost optimisation has helped it to reduce its Ebitda losses to its “lowest level to date.”
Ebitda loss for the quarter was Dh25 million, down from a Dh137 million loss in the same period last year, and a Dh70 million loss in the previous quarter. This is an 82 per cent improvement year-on-year and an 64 per cent improvement compared to the previous quarter.
“The steady decrease in Ebitda losses over the past quarters is a promising sign we are getting closer to reaching our Ebitda break-even target,” Almulla said.
“We continue to see signs of improvement across the business, in April we hit a new record daily visitation figure, with over 36,000 visits during the ‘Big Day Out’ festival. We are also very pleased to have signed an exclusive agreement with Dubai Airports that will give us access to all DXB concourses for targeted activations, marketing campaigns and dedicated sales points, helping us increase our exposure to international tourists,” he added.