DUBAI: DXB Entertainments (DXBE), the operator of leisure and entertainment destinations, has had to introduce a raft of new organisational changes to stem serious losses, the company’s owner said in a statement on Wednesday.
DXB Entertainment, which operates the theme parks, reported Dh286.2 million in losses for the second quarter of this year, compared to Dh41.3 million for the same period in 2016.
The company, which is listed on the Dubai Financial Market (DFM), said that these losses reflected “the normal trajectory of a business in its first year of launch and early phase of operations.”
DXBE reported Dh119.6 million in total revenue during the second quarter of the year, and said that Dh86.5 million of total revenue was generated through the theme parks, at an implied Dh209 revenue per cap.
The company further said that its main asset during the period — Dubai Parks and Resorts — recorded over 1 million visits during the first six months of the year with over 414,400 visits during the second quarter.
Structural changes
Despite professing normality, DXBE has subsequently announced several structural changes, including a round of redundancies, and a new strategy to change the company’s fortunes.
Re-organising the company into three new operating business units, DXBE will now focus on theme parks, family entertainment centres, and retail and hospitality.
All three units will be led by a new general manager, who will in turn report to DXBE’s chief executive.
As a result, the Vice President of Dubai Parks and Resorts, the Senior Vice President for Hospitality and Retail, the Chief Projects Officer, and the Chief Technical Officer, have all been made redundant.
The statement says that DXBE wishes “them all success in their future endeavours.”
Chief Executive Officer of DXBE, Mohammad Al Mulla, said in a statement: “For the remainder of 2017 and into 2018, our primary strategy for Dubai Parks and Resorts is to drive visitor volumes, focusing on repeat visitation from the resident and regional markets. We are in the process of simplifying our pricing structure and revising our annual pass offering.”
He added that “internationally, we will continue to focus on the core source markets of China, Russia, India, the UK and Germany through our tour and travel network.”
The CEO, however, noted that the company expects “to generate moderate visitor figures due to the hot weather in the third quarter.”
