DXB Entertainments, the theme park operator of Legoland and Motiongate in Dubai, narrowed losses for the third quarter as it continues to optimise its cost structure.
Losses for the three months to the end of September shrunk to Dh268.2 million, from Dh274.8m during the same period in 2018, the company said in a filing to the Dubai Financial Market, where its shares are traded. Revenue for the reporting period dropped 24 per cent year-on-year to Dh77.7m.
“We have made good progress in further optimising our cost structure and creating a leaner and more efficient business,” said Mohamed Almulla, chief executive and managing director of DXB Entertainments.
“Consequently, adjusted Ebitda [earnings before interest, taxes, depreciation and amortization] improved 13 per cent to Dh151m for the first nine months of 2019, which is in line with our Ebitda break-even strategy.”
The company is on track to meet the expected deadline to finish enhancement works at Motiongate and Bollywood Parks in the first half of 2020, it noted.
The number of total visits in the three months to the end of September, however, dropped 20 per cent to 401,000 from the same period last year, the company said.
Revenues from the theme park segment of the business reached Dh49m and hospitality revenue came in at Dh15m during the same period.
The company reported a loss of Dh717m during the nine month period of 2019 compared to Dh744m during the same period last year. Operating costs for the nine month period also fell to Dh449m from Dh530m during the same period last year, it said.
“We are ramped up for a busy fourth quarter, with a great line up of activities and special promotions to celebrate the holidays,” added Mr Almulla.