DXB Entertainments reported a 3.33 per cent fall in second-quarter revenue to Dh116 million, compared to Dh120 million a year ago, due to lower visitor numbers.
Out of the Dh116 million, Dh80 million was generated through theme parks, Dh5 million through retail and Dh17 million through hospitality, the theme parks operator said in a statement on Thursday.
In a statement to the Dubai Financial Market (DFM), the company said that hospitality revenue increased year on year by 47 per cent to Dh17 million in the quarter. Average occupancy stood at 46 per cent and the average daily rate stood at Dh556 for the second quarter.
For the first half, the operator reported a more than three per cent increase in revenue to Dh289 million, compared to Dh279 million.
“The business is making good financial and operational progress under our clearly defined strategy. Our primary focus is on driving footfall, generating repeat visitation through a simplified pricing structure and increasing brand awareness through targeted marketing initiatives,” said Mohammad Al Mulla, CEO and managing director of DXB Entertainments PJSC.
The operator attracted 1.46 million visits in the first half of the year, an increase of 46 per cent compared to the same period last year.
Al Mulla said that EBITDA (earnings before interest, tax, depreciation and amortisation) has continued to improve from a loss of Dh247 million in the first half of 2017, to a loss of Dh92 million this year; showing a 63 per cent improvement.
“This demonstrates that we are getting closer to our target of reaching EBITDA break even. We are currently working on a Bollywood Parks Dubai enhancement strategy which includes increasing the number of smaller family friendly rides as well as enhancing the theming, performances and food options,” he said.
“Looking ahead, we will continue to grow visitation from our key markets in the UAE, GCC and internationally, whilst also focusing on enhancing the visitor experience to deliver on DXB Entertainments’ long-term strategy.”
However, he added that theme parks are seasonal in nature and whilst “we expect to deliver year-on-year growth compared to the last year, we anticipate the warmer third quarter to continue to reflect the effect of seasonality in line with our expectations.”
Source: Gulf News