DXB Entertainments, the owner of Dubai Parks and Resorts, earned Dhs173m ($47m) in revenue for the first quarter of 2018, an increase of Dhs13m ($3.5m) compared to the same period last year.
The company also saw an 82% improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) losses compared to the same period last year. The figure also marked a 64% improvement on the last quarter of 2017.
DXB Entertainments attributed the EBITDA loss improvement to increased visitation, revenue growth and cost efficiencies. Dubai Parks and Resorts received 851,000 visitors during the first quarter of 2018, a 45% increase on the same period the previous year.
The improved performance was not just limited to the theme parks. Lapita, the Marriott-managed hotel located on the grounds of Dubai Parks and Resorts, saw its average occupancy increase to 62% for the first three months of 2018, compared to 22% for the same period last year and 47% in the previous quarter.
Mohamed Almulla, CEO and managing director of DXB Entertainments, said: “We are pleased to announce further growth in our revenue and visitor numbers, a strong signal that our revised pricing and marketing strategy is delivering results.”
He added that the company is getting closer to reaching its EBITDA break-even target, as is evidenced by the steadily declining EBITDA losses over the last several quarters.
“We continue to see signs of improvement across the business,” Almulla continued. “In April we hit a new record daily visitation figure, with over 36,000 visits during the ‘Big Day Out’ festival. We are also very pleased to have signed an exclusive agreement with Dubai Airports that will give us access to all DXB concourses for targeted activations, marketing campaigns and dedicated sales points, helping us increase our exposure to international tourists.”
In March, DXB restructured its debt and reduced visitor number targets in the light of poorer than anticipated attendance figures of 2.3 million visitors in 2017. The company reported revenue for 2017 of Dhs552m ($150m) which fell well short of the full-year target of almost Dhs2.447bn ($666m).
The Dubai Parks and Resorts complex opened in 2016 on a phased basis. Visitors gained access to the final rides and attractions in the fourth quarter of 2017, generating record attendance with 796,000 visits.
Image: c. Dubai Parks and Resorts.