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KHALEEJ TIMES, Wednesday, May 15, 2019 | Ramadan 10, 1440

DXBE post Dh142m Q1 revenue

Emarties: DXB Entertainments (DXBE) reported on Tuesday a first quarter revenue of Dh142 million, and said it has a strategy in place to deliver Ebitda (earnings before interest, taxes, depreciation and amortization) breakeven by mid 2020.

The company said the first quarter saw a 10 per cent year-on-year improvement in adjusted Ebitda loss due to the annualised impact of cost optimisation initiatives. Revenue was down 18 per cent, mainly due to a decrease in visitation to 760,000 visits. Net loss the quarter rose three per cent to Dh216 million.

In the first quarter, there has been a growth in international visitors, now representing 45 per cent of visitor mix.

Mohamed Almulla, CEO and Managing Director, DXBE, said cost optimisation initiatives continued to deliver resulting in 10 per cent improvement in adjusted Ebitda loss.

"In line with our stated strategy, we saw a healthy increase in international visitors, now representing 45 per cent of the total visitor mix, and an increase in our Lapita Hotel occupancy to 72 per cent, up from 62 per cent in Q1 2018," said Almulla.

"Not unexpectedly we have seen a reduction in this quarter's visitor numbers compared to last year, a typical pattern for a theme park in its second year as the domestic target market consolidates to a core of repeat visitors," he said, adding, the aim now is to maximise the revenue potential of the established domestic base while growing international visitor numbers.

"Building our international visitation, which delivers higher yields, will play an important role in delivering our target of Ebitda breakeven during the second half of 2020. Our target is to achieve upwards of 60 per cent international visitation, which will be delivered by our hotel strategy, strategic partnerships and the expansion of Motiongate Dubai and Bollywood Parks Dubai which will offer thrill rides allowing us to target new demographics," said Almulla.

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