DXB Entertainments posts net loss of Dhs2.7bn for 2020

DXB Entertainments, owner of Dubai Parks and Resorts, has reported a net loss of Dhs2.7bn for the year ended December 31, 2020, compared to Dhs855m recorded in 2019.

The net loss figure includes Dhs1.7bn of impairment losses on property and equipment and Dhs346m of non-cash depreciation.

Total theme park visitation during 2020 stood at 802,121, down 69 per cent compared to the previous year, while international visitation – which accounted for 36 per cent of the total visitation – declined only 7 per cent year on year.

The company reported revenues of Dhs144m for the year ended December 31, 2020, 71 per cent lower than Dhs491m in 2019. Theme parks remained the highest contributor to total revenues, with Dhs97m reported in 2020, followed by Lapita Hotel and Riverland revenues of Dhs38m and Dhs7m respectively.

Operating costs declined 49 per cent to Dhs285m in 2020 compared to the previous year, driven by temporary cost mitigation measures while the destination was closed, as well as from the impact of the cost efficiency plan implemented in 2019. At the end of the fiscal year 2020, the company held Dhs651m of cash and cash equivalents and Dhs117m of other financial assets, while its net asset value per share was Dhs0.0277.

The company’s 2020 operational and financial performance was significantly impacted by the fallout of the Covid-19 pandemic, resulting in the closure of the destination for a period of approximately six months during March to September 2020. As at FY 2020, the company had Dhs6bn in liabilities from financing activities and net debt of Dhs5.2bn.

Remi Ishak, acting CEO and CFO, DXB Entertainments, said: “2020 was a tremendously challenging year with major disruptions in travel and tourism as a consequence of the Covid-19 pandemic. The closure of the destination for a period of approximately six months had a significant impact on our operational and financial performance. We implemented our contingency plans and realised further cost savings during the year which partially mitigated the decline in revenues.”

“In 2021, while material uncertainty around near term general economic conditions remains, we continue to focus on identifying and implementing further operating efficiencies, completing the enhancement program and hotel strategy, and preparing for a potential recovery in visitation.”

On December 20, 2020, Meraas Leisure and Entertainment offered to acquire  100 per cent of the issued and paid-up ordinary shares of the company. The board, having evaluated the inputs received from its independent financial and legal advisors, has unanimously recommended to DXBE’s shareholders to accept the offer from Meraas.

Read: Dubai’s Meraas offers to delist park operator DXB Entertainments