DXB Deepens Its Losses In Nine Months By 39%

The financial statements of the UAE DXB company showed that the company's losses in the first nine months of this year increased by 39% on an annual basis, exceeding one billion dirhams.

According to the company's results for the Dubai Financial Market, today, Thursday, the company achieved losses of 231 million dirhams in the third quarter of this year, a decrease of 17% compared to the same period of Year 2019.

and based on the previous results, the accumulated losses of the company rose to about 6.2 billion dirhams, constituting 78% of the capital of 8 billion dirhams.

The company indicated in the statement that with regard to the measures that will be taken to address the accumulated losses, it has a strategy to achieve a break-even point before calculating interest, taxes, depreciation and deductions, and in view of the outbreak of the Corona epidemic (Covid 19) The timetable for its implementation has been affected, as this strategy includes 3 main pillars, which are:

(1) To achieve growth in international visits and increase the length of stay through the implementation of the strategy to increase the number of hotel rooms in the destination, which will provide more than 1,300 hotel rooms for Dubai Parks By fiscal year 2020.

(2) To further improve the game offerings in Motiongate Dubai and Bollywood Parks Dubai, including more exciting international games. This improvement will increase the attractiveness of The destination will increase the length of stay, increase per capita spending, and encourage new and frequent visits.

(3) Achieving more operational efficiency that will contribute to reducing operating expenses. Last year, operating costs amounted to about 0.56 billion dirhams compared to 0.73 billion dirhams in In 2018, compared to 0.93 billion dirhams in 2017, a decrease of 24% and 21%, respectively, and the operating costs for the first 9 months of 2020 were about 0.2 billion dirhams compared to 0.45 billion dirhams in the same period last year.

and the company stated that the main reasons that led to these accumulated losses were the operational losses for the pre-opening stage of the theme parks amounting to 0.76 billion dirhams, equivalent to 12% of the total losses In addition, the accumulated losses so far include non-cash expenditures, which are: depreciation of 1.6 billion dirhams, equivalent to 26% of the total accumulated losses, provisions for impairment: impairment of property and equipment worth 1.9 billion dirhams, equivalent to 31% of the total accumulated losses .

and the company indicated that the cumulative operating losses amounted to 0.75 billion dirhams, equivalent to 12% of the total accumulated losses ...