DXB Entertainments, operator of the Dubai Parks and Resorts theme park complex, has narrowed its net loss for the first nine months of this year to Dhs717m.
That compares to Dhs744m during the same period last year, an improvement of 3.6 per cent.
The improvement came on the back of reduced costs – operating costs during the period fell by 15 per cent to Dhs449m during the first nine months of this year, a statement said.
The Dubai-listed firm also reported that its adjusted EBITDA loss of Dhs151m showed an improvement of 13 per cent compared to the same period last year due to its “efficiency programme”, with further cost savings identified and implemented during the third quarter of 2019.
“The full impact will be realised in the coming year,” the company said, adding that it is on track to achieve EBITDA breakeven during H2 2020.
However, the company reported a 15.8 per cent drop in revenues during January – September 2019 to reach Dhs330m, mainly due to lower visitation from the resident market.
Theme park revenue during the third quarter was Dhs49m with a revenue per capita of Dhs122.
Overall visitor numbers fell 8 per cent to 1.8 million, compared to 1.96 million during the same period last year, with international visitors representing 42 per cent of the total.
Mohamed Almulla, CEO and managing director, DXB Entertainments said: “We have made good progress in further optimising our cost structure and creating a leaner and more efficient business.
“We are on track with the enhancement works at Motiongate Dubai and Bollywood Parks Dubai, which are expected to be completed in H1 2020. The enhancements will benefit our visitors by offering a broader choice of entertainment and thrill rides and are expected to increase dwell times and drive repeat visitation,” he added.
Dubai Parks, which comprises Bollywood, Hollywood and Legoland theme parks, recorded close to 2.8 million visits in 2018, an increase of 22 per cent compared to the previous year.
The venue, which opened in 2017, targeted 6.7 million visitors in its first year, but only drew in 2.3 million.
With an estimated development cost of Dhs13.2bn for Dubai Parks, DXB Entertainment reached a deal with creditors to restructure $1.14bn of debt in March last year.
In April, the company also announced that it will no longer be going forward with the Six Flags theme park project in Dubai since the project was not in its “best interests”.
The planned Six Flags theme park was expected to feature the world’s biggest rollercoaster among its 27 rides and attractions.