Dubai: DXB Entertainments, the Dubai-based theme park operator, has announced its full year financial results for 2017, posting revenues of Dh552 million, while recording heavy losses.
While this represents a 626 per cent increase on 2016’s revenues of Dh76 million, this huge growth is explained by the fact that DXB Entertainment only operated for three months in 2016.
According to its results, posted on the Dubai Financial Market website, the company incurred net losses of Dh1.1 billion in 2017, despite showing some signs of improvement in its fourth quarter.
On the plus side, between October and December, Dubai Parks and Resorts, DXB Entertainments’ primary asset, saw visitor numbers increase by 66 per cent compared to the previous quarter.
However, the weather is much cooler in Dubai between October to December than between July and September.
Revenues also increased by 37 per cent between the third and fourth quarter, according to the statement, with the company posting Dh157 million in quarterly income. Despite this, the company still saw an earnings before interest, tax, depreciation and amortisation (Ebitda) loss of Dh422 million for the year.
In September, DXB Entertainments announced that it had reached an agreement with its majority shareholder, Meraas, for a subordinated loan of Dh245 million.
The loan will take the form of an interest bearing unsecured subordinated shareholder loan with no fixed maturity. According to a statement from the company, the money will be used to fund operational expenses and debt repayments and will be drawn down immediately. DXB Entertainments says it is currently reviewing its ongoing financing requirements.
“Our strategy is to enhance DXB Entertainments’ position as the region’s largest manager of leisure and entertainment offerings, enabling the business to build revenue across a range of assets,” Mohammad Al Mulla, chief executive at DXB Entertainments said.