Theme park owner's revenues fell on summer discounting
DXB Entertainments losses deepen despite rising visitor numbers
DXB Entertainments, the Dubai-based theme park operator, failed to stem losses for the third quarter, which more than doubled, even as visitor numbers to attractions such as Legoland Dubai and Lapita Hotel rose, sending its shares sharply lower.
Losses attributable to shareholders hit Dh284.1 million for the three months to the end of September, compared with a Dh116.3m loss for the same period last year and a Dh286.2m loss for the second quarter of this year, the company said.
The loss for the third quarter exceeded the Dh277m forecast by investment bank EFG-Hermes.
Visitor numbers rose to 478,987 during the third quarter from 414,457 in the second quarter.
But revenues slipped 3.7 per cent compared with the second quarter, which the company blamed on lower admissions revenues as a result of seasonal discounting and more visits to the Lapita Hotel, which offers room rates inclusive of theme park access.
DXB Entertainment shares, listed on the Dubai stock exchange, fell as much four per cent in the first hour of trading on Sunday, but recovered to end 2.5 per cent lower.
The company completed an restructuring during the quarter, reducing staff numbers and marketing spend, and re-organising the business around three divisions encompassing theme parks, family entertainment centres, and retail and hospitality.