DXB Entertainments PJSC (DFM: DXBE) announced today its financial results for the half year period ended 30 June 2020, reporting AED 106 million in revenues, 596 thousand visits and 49% occupancy at the Lapita™ Hotel.
Financial Highlights (1 Jan 2020 – 30 June 2020)
FinaH1 2020 Financial Highlights
Commenting on the H1 2020 results, Mohamed Almulla, CEO and
Managing Director, DXB Entertainments PJSC, said: “We are grateful to the UAE leadership and
government entities for their directives and efforts to combat the spread of
the coronavirus, and ensure the health and wellbeing of everyone in the
“I am also very proud of my team’s hard work and support during this unprecedented and difficult time. Our contingency plans were successfully implemented to manage the temporary suspension of operations from March 15th onwards, while simultaneously carrying out the enhancement works to prepare the destination for its reopening on September 23rd. “We had a good start to the year and were on track to deliver another profitable quarter. However, the global pandemic and subsequent temporary closure of our operations from 15 March 2020 adversely impacted our performance for the period.
Although Q1 2020 revenue was AED 100
million, 30% lower than the prior year, the adjusted EBITDA loss improved by
78% compared to Q1 2019, driven by a reduction in operating cost of 39% or AED
“To mitigate the
impact of the temporary closure, further cost savings and contingency plans
were implemented which helped deliver cost savings of 52% or AED159 million for
the half year period.
are preparing to welcome back our annual pass holders and guests on September
23rd with additional health and safety measures implemented in
preparation for the gradual re-opening of our destination. Family friendly and record-breaking thrill
rides are being added to our destination, while the region’s first ever LEGOLAND®
Hotel Dubai is scheduled for completion later in the year.”
Non-Cash Impairment Charge
Whilst management believe it is still early
to assess the overall valuation of a theme park destination in its initial
stages of operation and which is considered a long-term commercial proposition;
an impairment loss of AED 393 million has been recognised to reflect the impact
of the COVID-19 pandemic.
DXB Entertainments remains committed towards
achieving its strategy of delivering EBITDA breakeven, however, the previously
communicated timelines have been impacted due to the Covid-19 pandemic. In the
near term we expect the visitation to the parks to be driven by the resident
market however we expect international visitation to gradually improve as
global travel and tourism industry recovers from the impact of the Covid-19
The successful implementation of the cost
efficiency strategy, addition of new rides and attractions as well as the
launch of the LEGOLAND® Hotel Dubai are expected to be key drivers in our
efforts towards delivering EBITDA breakeven.