Financial Highlights (1 Jan 2019 – 30 June 2019)
[1] EBITDA adjusted to exclude one-time and non-recurring charges and income.
H1 2019 Highlights
DXB Entertainments PJSC (DFM: DXBE) announced today its financial results for the half year ended 30 June 2019, reporting AED 252 million in revenues, 1.40 million visits and 63% occupancy at the Lapita™ Hotel.
EBITDA loss for the period was AED 81 million, comparable to the first half 2018, while adjusted EBITDA loss shows an improvement of 17% to AED 81 million. First half 2018 included a one-time gain in relation to the contribution of land to the LEGOLAND® Hotel Dubai. Operating cost during H1 2019 decreased to AED 309 million, compared to AED 361 million during the same period last year.
Theme park revenue during the second quarter was AED 70 million with a revenue per capita of AED 110. Hospitality revenue totalled AED 19 million during Q2 2019 at an ADR of AED 541 reflecting summer yields.
Commenting on the H1 2019 results, Mohamed Almulla, CEO and Managing Director, DXB Entertainments PJSC, said: “Dubai Parks and Resorts received over 1.40 million visitors during the first half of 2019 with international visitation growing to represent 40% of our overall visitor mix. The growth in international visitation was supported by our hotel strategy, which is designed to attract higher yielding international visitors. The progress of this strategy is illustrated by the increase in occupancy at our Lapita™ Hotel to 63% from 55% during the same period last year.
“As we shift the mix of our revenue, we have continued to focus on our cost optimization and efficiency, delivering a 17% improvement in our adjusted EBITDA loss during the period.
“Operational expenditure savings will play an important part in our strategy to achieve EBITDA breakeven in the second half of 2020 and consequently, we are continuing to review our cost base to implement further operational efficiencies, the results of which we will present to the market in the third quarter.”
Strategy Update
As part of DXB Entertainments strategy to deliver EBITDA breakeven in the second half of 2020, the Rove Hotel opened its doors at Dubai Parks and Resorts on 16 June. This midrange 579-rooms hotel diversifies the accommodation offering at the destination and targets a broader demographic of international tourists to the parks.
The LEGOLAND® Hotel is currently under construction and is expected to deliver an additional 250 rooms during the first half of 2020, taking total rooms to over 1,300 by the second half of 2020.
Furthermore, the company has decided to focus on its core asset – Dubai Parks and Resorts. As part of this realignment, the company has reached an agreement with its majority shareholder Meraas to discontinue the management of its portfolio of leisure and entertainment assets, with effect from mid-September. Concurrently, Mr. Paul Parker, former General Manager of the Family Entertainment Centres and recently Chief Commercial Officer will be leaving the organisation, the company will provide an update regarding a replacement in due course.
On 2 July, the company announced that pursuant to receiving shareholder approval at the General Assembly held on the 24th April 2019, the Company has reached an agreement with Six Flags which allows the company to retain exclusive rights of first refusal to utilise the Six Flags intellectual property rights in the UAE for a period of five years.
The company continues to work on its ride enhancement plan which will allocate a select portfolio of 10-12 rides purchased for the previously planned Six Flags Dubai park, to MOTIONGATE™ Dubai and Bollywood Parks™ Dubai to increase dwell time and drive repeat visitation.
ENDS
For further information, please contact:
Abdul Rahman Al Suwaidi, Investor Relations Manager, DXB Entertainments PJSC +97148200820 IR@dxbentertainments.com
Jon Earl, Managing Director, FTI Consulting
+97144372104 jon.earl@fticonsulting.com
Anca Cighi, Director, FTI Consulting +97144372111 anca.cighi@fticonsulting.com
DXB Entertainments PJSC
DXB Entertainments PJSC is the Dubai-based owner and operator of Dubai Parks and Resorts, the region’s leading integrated leisure and entertainment destination. The Company is traded on the Dubai Financial Market (DFM) under the trading symbol “DXBE”. We bring together a portfolio of world-class brands to offer entertainment in the areas of theme parks, retail and hospitality.
For more information, go to: www.dxbentertainments.com
