DXB Entertainments shrinks losses in Q3 as company conducts strategic review
Total visits to Dubai Parks and Resorts were up 5 per cent to 501,394, theme park operator says
DXB Entertainments, the theme park operator of Legoland and Motiongate in Dubai, narrowed third quarter losses by 4.5 per cent and is conducting a "strategic review" of Dubai Parks and Resorts, which may delay the opening of Six Flags Dubai.
The company reported a net loss of Dh271.4 million in the period ended September 30, missing the median estimate of Dh256.5 of two analysts polled by Bloomberg.
“The third quarter of the year is typically our slowest period, as it is affected by the heat of the summer months, however we are pleased to report growth in visits,” Mohamed Almulla, chief executive and managing director of DXBE, said in a filing on Tuesday to the Dubai bourse, where its shares are traded.
Total visits in the three months ended September 30 increased 5 per cent to 501,394 from the same period last year, DXBE said. Revenue for the third quarter dipped 11 per cent year-on-year to Dh103m, of which Dh67m was generated through theme parks, Dh19m through hospitality and Dh5m through retail, DXBE said.
The company is currently conducting "a strategic review of Dubai Parks and Resorts...[and] the full results will be presented to the board before the end of the year and may have an impact on the target opening date of Six Flags Dubai," Mr Almulla said.
Average occupancy at the Lapita hotel at Dubai Parks and Resorts rose to 66 per cent in the third quarter of 2018, up from 42 per cent in the same period of 2017.
DXBE, in which Dubai developer Meraas holds a 52.3 per cent stake, said in August it will review its future expansion plans after narrowing its second-quarter loss as well, on higher visitor numbers and lower costs.
“The business continues to focus on reaching Ebitda breakeven,” Mr Almulla said.
Updated: November 6, 2018 12:46 PM