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DXB Entertainments posts Dh115m Q3 revenue

DXB Entertainments (DXBE) has announced that its revenues for the third quarter of 2017 stood at Dh115 million, while visitation numbers for the nin-month period ending September 30, 2017, showed a 16 per cent increase.
DXBE's main asset during the nine-month period, Dubai Parks and Resorts, recorded 1.5 million visits, with over 478,000 visits during the third quarter. Around Dh68 million of the third quarter's total revenue of Dh115 million was generated through the theme parks, at an implied Dh142 of revenue per visit.
The slight decrease in revenue compared to the second quarter of 2017 was driven by lower admissions revenue due to a higher number of visits generated through the Lapita Hotel, where room rates are inclusive of theme park access, as well as a range of summer offers and revised GCC resident pricing for winter effective from September 1, 2017.
Mohamed Almulla, CEO of DXB Entertainments, said: "Now that the parks are fully operational with all rides open to the public, we are focused on our marketing efforts to promote the individual parks by leveraging our IP partners and the multitude of experiences through advertising campaigns and special events. Our strategy to drive footfall culminated in an all-time-high visitation number, during our DPR Big Day Out event on September 29, 2017, when we recorded more than 25,000 visits to Dubai Parks and Resorts."
"Financially, we reported revenues of Dh115 million and an adjusted EBITDA loss of Dh91 million during the quarter, reflecting an EBITDA improvement despite the lower revenue, as a result of our continuing cost efficiency measures," he added. "We expect that going forward, we will be able to show lower operational costs and therefore improved EBITDA."
For the nine months ended September 30, 2017, DXB Entertainments reported total revenues of Dh395 million, and Dh115 million during the third quarter, of which Dh68 million was generated through the theme parks, Dh11 million through retail and Dh15 million through hospitality.
Within the theme parks, 57 per cent of revenue came through admissions and 33 per cent through in-park spend, reflecting a lower admissions yield due to reduced pricing and higher annual pass and Lapita Hotel visits.
Of the 478,987 visits to the parks during the quarter, 19 per cent was driven through tour and travel operators; this is the key visitation channel that the business is focusing on to grow in its key source markets of India, China, the UK and Russia.
Operating costs, including pre-opening and non-recurring items, were Dh720 million for the first nine months of the year with the third quarter operating expenses decreasing to Dh204 million.
- business@khaleejtimes.com