World Leisure Jobs - DXB records US$232.8m loss as company implements cost-cutting measures at theme parks ...
21 Feb 2020 World leisure: news, training & property
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

11 Feb 2020

DXB records US$232.8m loss as company implements cost-cutting measures at theme parks
BY Andy Knaggs

Legoland Dubai will have a new 250-room hotel later this year

Legoland Dubai will have a new 250-room hotel later this year
photo: Shutterstock

DXB Entertainments, which runs the Legoland, Bollywood and Motiongate theme parks in Dubai, says it sees encouraging signs in its latest financial results, despite reduced attendances in 2019 compared to 2018.

The fourth quarter of 2019 saw the company make its first-ever quarterly profit before earnings of AED2m (US$540,000, €500,000, £420,000), while earnings for the full year were a loss of AED149m (US$40.6m, €37.2m, £31.4m) – a 38 per cent improvement on 2018.

DXB has put the improved numbers down to an efficiency and cost optimisation programme, which was implemented following previous troubling results, with the company saying that it expects to realise further gains from these measures in 2020. While visitor numbers were down by 7 per cent on the year to just under 2.6 million people, average hotel occupancy rates increased by 3 per cent to 62 per cent.

Adjusted net loss for the complete year was AED855m (US$232.8m, €213.3m, £180m), an improvement of 15 per cent on 2018's figures.

2020 is shaping up to be an important year for DXB, with an enhancement plan for Motiongate and Bollywood Parks Dubai bringing in a dozen new rides by the second half of the year. A 250-bedroom Legoland Hotel is on target for delivery in the first half. DXB implemented a new pricing strategy in October 2019 to encourage multi-park visitation, improve yields and target new market segments. 2020 is also the year of the Dubai Expo, which is expected to significantly boost tourism across the region when it opens on 20 October.

"Our efficiency programme is delivering good results, with year-on-year savings in operating costs of AED172m (US$46.8m, €42.9m, £36.2m) in Financial Year 2019, with further savings to be realised in 2020," said Mohamed Almulla, CEO and managing director of DXB Entertainments.

"Our focus is now on delivering EBITDA profitability on a full-year basis by achieving revenue growth, specifically through initiatives to drive visitation from our core international markets and through hotel strategy."

The completion of the Legoland Hotel will give DXB an on-site room inventory of 1,300 keys, and Almulla said the introduction of further hotel rooms to the destination will be a "key driver of growth in international visitation, facilitating the bundling of our theme park tickets with hotel stays and ultimately increasing length of stay, visitation and dwell times".

Given the seasonal nature of its business, Almulla said the business expects profitability in Q1 and Q4 2020, but losses in Q2 and Q3.



Connect with
World Leisure
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
MVRDV design "urban living room" with lush greenery and organic, stacked terraces
MVRDV design   21 Feb 2020

MVRDV is one of two finalists in a competition to design the Shimao ShenKong International Centre, with a proposal that combines stacked terraces, .... more>>
Texas Kalahari Water Park scheduled for November 2020 opening
Texas Kalahari Water Park scheduled for November 2020 opening   21 Feb 2020

A new US$550m (€509m, £426m) African-themed water park and resort from Kalahari Resorts & Conventions is due to open in Round Rock, Texas, in November .... more>>
Coronavirus delays opening of teamLab SuperNature Macao
Coronavirus delays opening of teamLab SuperNature Macao   21 Feb 2020

The opening of teamLab's SuperNature Macao museum of immersive digital artworks in Macau, China, has been delayed until further notice as a result of .... more>>
Brinkworth installs floating skate bowl in San Francisco store
Brinkworth installs floating skate bowl in San Francisco store   21 Feb 2020

Retail designers Brinkworth have designed a new store in San Francisco for fashion brand Supreme, with a floating skate bowl that reflects the brand's .... more>>
Company profile


TOR Systems Ltd

TOR Systems have been in this business since 1981.

View full profile>>

Catalogue gallery


Featured Supplier

FORA works with Power Plate to raise awareness of sitting disease through movement and vibration

FORA works with Power Plate to raise awareness of sitting disease through movement and vibration

With office workers spending over eight hours per day sitting at their desks, and one in six affected by mental health issues every year, it is no surprise that businesses are looking to introduce ‘wellness’ to the workplace More>>




in this issue

• Aggregators: one in five joins a gym
• Third Space opens sixth club in London
• £72m Alexander Stadium plans approved



World Leisure jobs




Club and Tennis Manager
Salary: Competitive
Location: Shepherd's Bush, London, UK
Company: Holland Park Lawn Tennis Club
Recreation Assistant (Lifeguard)
Salary: Up to £22,008 per annum (40 hours a week pro rata)
Location: Clapham, South West London
Company: GLL
Recreation Assistant (Lifeguard)
Salary: Up to £10.55 per hour
Location: Clapham, South West London
Company: GLL
Leisure Team Member Apprentice
Salary: Up to £22,008 per annum (40 hours a week pro rata)
Location: Shoreditch, East London
Company: GLL
Diary dates
Powered by leisurediary.com




19-21 Feb 2020

ForumPiscine - 12th International Pool & Spa Expo and Congress

Bologna Exhibition Centre, Bologna, Italy


24 Feb 2020

Global Beauty & Wellness Exchange

Montage Palmetto Bluff, Bluffton, United States



Leisure Management magazine 2018 issue 1
Leisure Management
2018 issue 1

View issue contents
View on turning pages
Download PDF
  Arts & Culture: The show must go on
When austerity hits hard, UK theatres adapt and get creative More>>
  Tourism: High flyers
How bmi and Projekt Spielberg are growing British tourism to Graz More>>


Leisure Management magazine 2016 issue 1

Leisure Management
2016 issue 1

View issue contents
View turning pages
Download PDF
  Sports: Play to the crowd
When public sector budgets are tight, crowdfunding is an attractive option More>>
  Hospitality: Wasted opportunity
Restaurants take innovative approaches to solve the problem of food surplus More>>


Published by The Leisure Media Company Ltd Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ. Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd