Growing visitor numbers lift DXB Entertainments

Theme park operator records 1.96m visitors in first 9 months, keeps tight rein on costs

Theme park operator DXB Entertainments recorded a 5 per cent gain in visitor traffic during the third quarter, totalling 501,394 visits. That takes the tally for the first nine months to 1.96 million, which is 33 per cent over the same period in 2017.

International visitors now represent 40 per cent of the visits to the destination.

The sustained campaigns run ahead of the summer breaks and the ticketing strategy seems to have fuelled the 2018 third-quarter gains. Plus, the operator continues to keep a tight rein on the numbers.

“The business continues to focus on reaching EBITDA [earnings before interest, tax, depreciation and amortisation] break-even,” said Mohammad Al Mulla, CEO and managing director, in a statement.

“We have achieved 51 per cent improvement during the first nine months, with an EBITDA loss of Dh173 million, compared to Dh353 million for the same period last year.

“Operationally we have sought to decentralise our structure to make it more efficient and this has resulted in cost efficiencies as demonstrated by our improving EBITDA losses. Looking ahead, we are focused on increasing the international tourist visits as the key driver of future growth.”

Operating expenses “continue to decline”, totalling Dh176 million in the third quarter, compared to Dh188 million in the second quarter, and Dh28 million less when compared to the same period last year.

Third-quarter revenues came in at Dh103 million (Dh115 million in the third quarter of 17), while for the first nine months the tally was Dh392 million, a slight dip on last year’s Dh395 million.