DXB Entertainments remains committed to breaking even despite pandemic
Dubai Parks and Resorts is set to reopen to annual pass holders and guests 'with additional health and safety measures' by September 23
DXB Entertainments remains committed to ensuring that it breaks even, even though this may be delayed as a result of the Covid-19 pandemic, which led to revenue declining 95 per cent in the second quarter.
Movement restrictions put in place to prevent the spread of the coronavirus led to the March 15 closure of Dubai Parks and Resorts theme park, which reduced revenue for the quarter to Dh6.1 million, from Dh109.5m in the same quarter a year earlier, the company said in a statement to the Dubai Financial Market, where its shares trade.
Still, the company was able to contain its net loss for the period, which widened 11 per cent to Dh257.9m.
"We had a good start to the year and 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 affected our performance," Mohamed Almulla, chief executive and managing director of DXB Entertainments, said.
"Operationally, we are preparing to welcome back our annual pass holders and guests on September 23 with additional health and safety measures implemented in preparation for the gradual reopening of our destination," Mr Almulla said.
DXB Entertainments is majority-owned by Meraas Leisure and Entertainment, which holds about 52 per cent of its shares, according to market data.
DXB Entertainments owns and operates Dubai Parks and Resorts, a site containing the Bollywood Parks Dubai, Motiongate and Legoland Dubai theme parks, as well as a hotel and other attractions.
The closure of the park for most of the second quarter meant visitor numbers for the first half of 2020 dropped 57 per cent to 596,000. Revenue for the six-month period fell 58 per cent to Dh106.4m, and losses widened by 69 per cent to Dh866.7m, which included a one-off, non-cash impairment charge of Dh393m related to the pandemic.
The company said it had used the park's closure to work on upgrades, with 12 new rides and a Legoland hotel set to open by the end of the year. In the near future, it expects visits to be driven by residents, adding "we expect international visitation to gradually improve as [the] global travel and tourism industry recovers from the impact of the Covid-19 pandemic".
Published: August 15, 2020 03:21 PM