Dubai: DXB Entertainments (DXBE) on Sunday reported a first half adjusted net loss of Dh430 million compared to Dh448 million reported in H1 2019.
The company said with the successful execution of the 2019 cost efficiency strategy, Q1 2020 adjusted EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] was trending towards another profitable quarter. However, the impact of Covid-19 resulted in adjusted EBITDA loss of Dh4 million, a 78 per cent improvement quarter-on-quarter.
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“We had a good start to the year and were on track to deliver another profitable quarter. However, the global pandemic and subsequent temporary closure of our operations from March 15, 2020 adversely impacted our performance for the period,” said Mohamed Almulla, CEO and Managing Director, DXB Entertainments.
“Although Q1 2020 revenue was Dh100 million, 30 per cent lower than the prior year, the adjusted EBITDA loss improved by 78 per cent compared to Q1 2019, driven by a reduction in operating cost of 39 per cent or Dh60 million.”
Due to the global pandemic and under government directives, the Parks were temporarily closed from 15 March 2020. Mitigated by the implementation of robust contingency plans, this closure resulted in H1 2020 adjusted EBITDA loss of Dh60 million, a 26 per cent year-on-year improvement.
The company’s H1 2020 revenue was Dh106 million, 58 per cent lower compared to Dh252 million in H1 2019, impacted by the temporary closure . Frist half 2020 operating cost base was 52 per cent lower at Dh150 million compared to Dh309 million in H1 2019. Non-cash impairment charge of Dh393 million was recognized to incorporate impact of COVID-19.
“To mitigate the impact of the temporary closure, further cost savings and contingency plans were implemented which helped deliver cost savings of 52 per cent,” said Almulla.