Friday 18 January 2019

Almulla...'New strategy will enable DXBE to generate value for shareholders'.

DXB Entertainments plans revamp; inks deal with Meraas

DUBAI, August 9, 2017

DXB Entertainments (DXBE), operator of Dubai theme parks, has unveiled a new strategy which will enable the business to build revenue across a range of assets and strengthen its position as the region’s largest operator of leisure and entertainment assets, the company said.

The announcement follows DXBE reporting a revenue of Dh279 million ($75.96 million) and a loss of Dh578 million ($157 million) for the first half of this year, compared with a revenue of Dh76 million ($20.68 million) and a loss of Dh485 million ($132 million) recorded at the end of 2016.

As part of the new strategy, DXBE has entered into a management agreement with UAE developer Meraas to manage a portfolio of leisure and entertainment offerings including Hub Zero, Splash Pad, The Green Planet, Mattel Play Town and Roxy Cinemas.

Mohamed Almulla, CEO, DXB Entertainments, said: “This is an exciting strategy which will enable DXBE to generate value for its shareholders through the operation of the region’s largest portfolio of leisure and entertainment assets.  

“We are re-organising the business into three operating business units which aligns DXBE with our strategic growth objectives. The new structure, and the industry specific talent we are bringing on board, will help to drive value across DXBE’s leisure and entertainment portfolio," he said.

The three new divisions are Theme Parks; Family Entertainment Centres; and Retail and Hospitality and will have new company heads reporting to DXBE’s chief executive. The company said that the new hires “have been made by DXBE to ensure the divisions are led by regional industry specialists with proven management experience”.

DXBE’s main asset, Dubai Parks and Resorts, recorded over one million visits during the first six months of the year with over 414,400 visits during the second quarter, reflecting the anticipated reduction in attendance due to seasonality.

DXBE reported Dh119.6 million ($32.5 million) in total revenue during the second quarter of the year. Dh86.5 million ($23.5 million) of total revenue was generated through the theme parks, at an implied Dh209 ($56.8) revenue per cap.

As at June 30, 2017, total assets stood at Dh12.5 billion, primarily comprising Dh10.3 billion in property and equipment, investment properties, inventories, trade and other receivables.  At the end of June, the entire financing facility for Phase One of Dubai Parks and Resorts had been drawn down.

EBITDA loss for the first six months of 2017 was Dh247 million (Dh186 million excluding the Dh61 million of pre-operating expenses), reflecting the normal trajectory of a business in its first year of launch and early phase of operations.  

DXBE is progressing well towards achieving a 20 per cent operational cost reduction compared to the initial projections, with operating expenses of Dh209 million during the second quarter of 2017, the company said.  

Almulla added: “For the remainder of 2017 and into 2018, our primary strategy for Dubai Parks and Resorts is to drive visitor volumes, focusing on repeat visitation from the resident and regional markets. We are in the process of simplifying our pricing structure and revising our annual pass offering, to include competitive pricing, special offers and an attractive package of additional discounts and benefits.

“We expect to generate moderate visitor figures due to the hot weather in the third quarter, and plan to achieve an increase in visitation and revenue during the last quarter of the year. We expect to see a marginal impact on revenue from the current operations of third party assets but with potential to generate further revenue from cross asset marketing and selling and the opportunity to manage other leisure and entertainment assets in the future."

"We have a market leading asset in Dubai Parks and Resorts, and we are proud to have recorded over one million visits in the first half of this year. With our new strategy, Dubai Parks and Resorts will play a key part of our plans to generate growth across our leisure and entertainment assets,” he said. - TradeArabia News Service

Tags: Dubai | entertainment | DXB | Meeras |

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