DXB Entertainments posts 2020 net loss of Dh2.7b on one-time charges
Company has urged shareholders to vote in favor of Meraas’ proposal
Dubai: DXB Entertainments’ net loss widened in 2020, partly due to impairment charges related to property and equipment.
The company reported a net loss of Dh2.7 billion for the year ended December 31, 2020. It lost Dh855 million in the same period a year earlier.
“Severe disruptions in global trade and tourism, and the city-wide lockdowns globally and locally, significantly impacted the Company’s operations and financial performance for the year 2020,” DXB Entertainments said in a statement.
The firm, which owns theme parks and hotels, said its revenue in 2020 fell 71 per cent year-over-year to Dh144 million.
Cutting costs
The company was able to keep a tight lid on its expenses with operating costs falling 49 per cent to Dh285 million in 2020.
“We implemented our contingency plans and realised further cost savings during the year which partially mitigated the decline in revenues,” said Remi Ishak, Acting CEO and CFO, DXB Entertainments.
“In 2021, while material uncertainty around near term general economic conditions remains, we continue to focus on identifying and implementing further operating efficiencies,” Ishak added.
Cash flow
As of December 31, 2020, Dubai Entertainments had cash balances, including other financial assets of Dh800 million, of which Dh100 million is restricted or ring fenced cash, mainly related to the debt service reserve account and Dh300 million is related to the settlement of construction related costs associated with the Six Flags project and the ongoing enhancement program.
Last year, the company received an offer from Meraas Leisure and Entertainment LLC to acquire 100 per cent of the issued and paid-up ordinary shares of DXB Entertainments.
DXB Entertainments’ board considers the terms of the proposal “fair and reasonable” and urged shareholders to vote in favor of the deal at the general assembly meeting on March 9, 2021.