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HomeCompaniesDXB ENTERTAINMENTS P.J.S.C. : Q3 2016 Financial Results

DXB ENTERTAINMENTS P.J.S.C. : Q3 2016 Financial Results

13 November 2016

Highlights

  • Phase 1 of Dubai Parks and Resorts opened to paying visitors
  • Phase 2 of Dubai Parks and Resorts  on track with Six Flags Dubai due to open late 2019
  • Rebranding to DXB Entertainments completed
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Raed Kajoor Al Nuaimi, Chief Executive Officer, DXB Entertainments, said, “The opening of LEGOLAND® Dubai and Riverland™ Dubai on 31 October to the public, was a great day for the whole DXBE team.  In less than two years of launching a highly successful IPO, we have now built the region’s leading integrated theme park destination: Dubai Parks and Resorts.  This is an exciting moment in DXB Entertainment’s history and we are happy to be moving into the operational phase of the Company.

Bollywood Parks™ Dubai will open on the 17th November 2016 and the LEGOLAND® Water Park will open shortly thereafter; culminating in the launch of MOTIONGATE® Dubai on 16 December 2016. 

“Our marketing and sales strategy is fully established and focused on generating ticketing and package revenues from both international tourists and residents.  International sales, forecast to generate approximately 70% of visitors, will be driven by Dubai Parks and Resorts’ marketing presence in Saudi Arabia, UK, Germany, India, China, Nigeria and Russia, as well as through the 125 Destination Management Company agreements and 70 Tour Operator agreements signed.   We are also targeting the UAE market with a range of marketing strategies to build awareness and encourage ticket purchase from residents and in-market tourists.

“A number of new revenue generating agreements were signed post period including our five year agreement with Dubai First to offer a co-branded MasterCard credit card which will offer card members rewards, benefits and service throughout Dubai Parks and Resorts.  We also signed a new five year profit share agreement with Gulf Islamic Investments to develop and invest in a state-of-the-art parking management system for Dubai Parks and Resorts.  More than 10,000 car parking spaces will be managed under the agreement, with parking fees ranging from AED 50-80 for a full day of parking and AED 120-150 for VIP and valet parking services.

“We have now signed lease proposals covering 84% of leasable space in Riverland™ Dubai, as we welcome a growing range of world-leading retail and F&B brands to entertain our guests.

“One of the biggest achievements for the business during the period was the successful rebranding of the company from Dubai Parks and Resorts PJSC to DXB Entertainments PJSC.  All DUBAIPARKS shares are now traded under the new trading symbol DXBE using the existing ISIN code.

“The name DXB Entertainments is a move to differentiate the wider corporate entity from the existing theme park destination and reflects the company’s long term strategy and ambition to grow and become a leader in the leisure and entertainment industry. The Company’s core focus will remain theme parks and retail and hospitality offerings with a longer term ambition to move into the wider media and entertainment space.

“The Company also aims to create long term shareholder value by leveraging existing expertise to provide project management services or operational experience to select companies. Within this scope the Company has signed an MOU with Meraas to provide expertise for select projects currently under development by Meraas, including the Dubai Arena which is being built as part of City Walk Dubai.

“Dubai Parks and Resorts continues to be the name of the destination which includes 4 theme parks (Six Flags opening in 2019), 1 water park, a 504 key hotel and a retail and dining district with 234,000 square feet of leasable space.

“During the period, we broke ground on Six Flags Dubai, the first Six Flags branded theme park in the region. Scheduled to open in late 2019, Six Flags Dubai will be the fourth theme park at the Dubai Parks and Resorts destination.

“Our financial position remains strong. Our total assets stood at AED 12 billion as at 30 September 2016, primarily comprising AED 8.4 billion in property, equipment and investment properties.  We maintain our projected revenue outlook for 2017, the first full year of operations, at AED 2.4 billion, however we expect to see a slightly higher cost structure than originally anticipated largely due to an increase in staff costs and facilities management costs. The Company continues to identify means to mitigate these costs. 

“Our recruitment programmes have been successful.  As at the end of September we had over 1,800 full time employees.  We continue to focus on recruiting Emirati staff following a specific programme to attract Emirati talent into the theme park sector.  We aim to bring our total staff to 4,000.

“We look forward to welcoming visitors to Dubai Parks and Resorts in the coming months, as the entire destination opens to the public, and focusing the company on operational efficiency and delivering an Amazing customer experience.”

-Ends-

For further information please contact:
Marwa Gouda, Head of Investor Relations, DXB Entertainments PJSC
+97148200820
[email protected]

Jon Earl, Managing Director, FTI Consulting
+97144372104
[email protected]

Anca Cighi, Director, FTI Consulting
+97144372111
[email protected]

DXB Entertainments PJSC
DXB Entertainments PJSC is a Dubai headquartered leisure and entertainment company traded on the Dubai Financial Market (DFM) under the trading symbol DXBE. As of the 30 September 2016 it had a market cap of AED 12.6 billion.

DXB Entertainments was listed on the DFM in December 2014 originally as Dubai Parks and Resorts PJSC. DXB Entertainments owns the Dubai Parks and Resorts destination which consists of 4 theme parks (Six Flags Dubai opening in 2019) and 1 water park all at the same location. The large-scale AED 13.2 billion development is spread across 30.6 million square feet of land with 6.7 million ticketed visits expected in 2017, the first full year of operation.

For more information go to: www.dxbentertainments.com

Dubai Parks and Resorts, owned by DXB Entertainments PJSC, is the Middle East’s largest multi-themed leisure and entertainment destination comprising three separate theme parks: MOTIONGATE™ Dubai, a Hollywood movie inspired theme park concept; LEGOLAND® Dubai, the first LEGOLAND theme park in the Middle East; and Bollywood Parks™ Dubai, a first-of-its-kind theme park that will showcase rides and attraction based on some of Bollywood’s biggest blockbusters. It will also host the LEGOLAND® Water Park, the region’s first water park catering to families with children aged 2-12. Expected to open in late 2019, Six Flags Dubai will be destinations fourth theme park and the regions first Six Flags themed park.

The entire destination will be connected by Riverland™ Dubai – a uniquely themed retail and dining destination at the heart of Dubai Parks and Resorts, and guests can stay at the Lapita™ Hotel, a Polynesian themed family hotel part of the Marriott Autograph Collection.

Located on Sheikh Zayed Road opposite the Palm Jebel Ali in Dubai equidistant to Dubai and Abu Dhabi International Airports the destination offers over 100 rides and attractions

For more information, go to: www.dubaiparksandresorts.com

© Press Release 2016

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