20 Feb 2019
Losses shrink for DXB as operator strives to turn a profit for struggling parks portfolio
BY Andy Knaggs
Preliminary financial results for 2018 released by Dubai theme park operator DXB Entertainments have shown reduced losses, greater visitor numbers, and better operating costs compared to 2017.
DXB made a net loss of one billion dirhams (US$272m, €240m, £209m) for 2018, a figure that is 11 per cent lower than the AED1.12bn (US$305m, €269m, £234m) loss declared for 2017.
The company’s operating loss for the year also narrowed on the 2017 performance, shrinking from AED445m (US$121m, €107m, £93m) to AED260m (US$70m, €62.5m, £54m), helped by reduced operating expenses (21 per cent lower than 2017). However, revenues fell by 2 per cent to AED541m (US$147m, €130m, £113m), despite DXB recording greater numbers of visitors, with a 22 per cent year-on-year increase seeing 2.8 million people enter its theme parks in 2018. This would seem to have been caused, at least in part, by a fall in average theme park spend per visit, which dropped 11 per cent to AED123 (US$33.49, €29.56, £25.70).
DXB recorded a Q4 net loss of AED268m (US$73m, €64m, £56m) – a 5.1 per cent increase on the net loss of AED255m (US$69m, €61m, £53m) for the same quarter in 2017.
As reported in Attractions Management on 7 February 2018, DXB’s plans to build a Six Flags theme park in Dubai have been put on hold as the financing for the project was no longer available. However, DXB said in its preliminary results statement to the Dubai Financial Market that there was no financial impact from the Six Flags Dubai project in these provisional figures.
The company runs the Motiongate, Bollywood and Legoland theme parks in Dubai, as well as the Legoland water park, two hotels and a themed retail and dining destination.
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