DXB Entertainments PJSC (DFM:DXBE), the Dubai based operator of leisure and entertainment destinations and experiences today announces its preliminary unaudited consolidated financial results for the year ended 31 December 2018.
General Information
Summary of Preliminary Financial Results (unaudited)
(AED million) 2018
(AED million) 2017
12,180
12,100
5,366
6,299
541
552
(260)
(445)
(1,001)
(1,116)
(0.125)
(0.140)
[1] For the year ended 31 December 2017 revenue includes one-off project management services revenue of AED 22 million.
[2] Net operating loss for the year excludes depreciation and amortization expense and non-operating expenses and income.
Note: The audited consolidated financial statements of DXB Entertainments PJSC (the “Group”) may be different from the preliminary results as the results presented are unaudited and subject to external audit.
Furthermore, as announced on 6 February 2019, actions, including formal notification by Six Flags, resulted in funders’ concerns being raised specifically in relation to revised projections for the Six Flags Dubai project. As a result, the syndicated finance facility intended for utilisation as part of the development of the Six Flags branded theme park is no longer available, and the Six Flags Dubai project cannot proceed at this time.
The Group is in the process of updating its strategic review to take account of the above and given the recent nature of such developments the preliminary unaudited results of the Group do not reflect any potential financial impact with regard to the Six Flags Dubai Project, nor material post balance sheet updates, if any.
Summary of the Company’s performance for the year ended 31 December 2018
Operational Highlights
Total visits during the year approached 2.8 million, an increase of 22% year-on-year. The fourth quarter delivered 819 thousand visits, an increase of 3% compared to the same quarter in the prior year and an increase of 63% compared to the third quarter of 2018. During the year the second Dubai Parks and Resorts “Big Day Out” delivered record daily visitation, delivering over 36 thousand visits in a single day.
Annual occupancy at the Lapita Hotel was 60%, up from 35% in the prior full year. Fourth quarter occupancy reached 63%, up from 48% in the same period last year, with occupancy in December reaching 72% with certain days over the winter holiday period delivering close to 100% occupancy.
Financial Summary
For the year ended 31 December 2018, the Group reported total revenue of AED 541 million, a marginal decrease of 2% on the prior year. Prior year revenues however included AED 22 million of one-time project management revenues. Excluding the one-time project management revenue, like-for-like total Group revenue increased by 2%. Of the total Group revenue of AED 541 million, AED 367 million was generated through the theme parks, AED 92 million through hospitality, AED 30 million through retail and AED 52 million through other revenue streams, including sponsorship.
Overall operating expenses for the year, inclusive of marketing and selling and pre-opening costs but excluding depreciation and amortization were AED 728 million, compared with AED 925 million in the prior year, a year-on-year saving of 21% across multiple cost lines.
EBITDA loss for the year ended 31 December 2018 was AED 210 million, an improvement of 50% on the AED 422 million EBITDA loss reported in the year ended 31 December 2017. Adjusted EBITDA loss, excluding the impact of pre-opening and one-time expenses and income, was AED 239 million, an improvement of 30% compared to the AED 342 million reported in the year ended 31 December 2017.
Net loss for the year ended 31 December 2018 was AED 1,001 million which includes AED 474 million of non-cash depreciation and AED 318 million of net finance costs.
As described above, the preliminary unaudited results for the year ended 31 December 2018 do not reflect any potential financial impact with regard to the Six Flags Dubai Project, nor any material post balance sheet updates, if any.
عبدالوهاب الحلبي رئيس مجلس الادارة
Abdul Wahab Al-Halabi Chairman of the Board of Directors
