Dubai theme-park operator DXB Entertainments sees drop in visitors

DXB Entertainments said its attractions saw 760,000 visitors in the first quarter of 2019, an 11% decline on the year-ago period. (Supplied)
Updated 14 May 2019

Dubai theme-park operator DXB Entertainments sees drop in visitors

LONDON: Dubai theme-park operator DXB Entertainments saw an 11 percent drop in visitors in the first quarter of 2019 — but says it is looking for growth in international guests as it aims to break even next year.
The the first phase of the company’s main asset — where attractions include Bollywood Parks and Legoland — opened in 2016.
DXB Entertainments said in a statement Tuesday that its attractions saw 760,000 visitors in the first quarter of 2019, an 11 percent decline on the year-ago period. 
Revenues for the quarter stood at 142 million dirhams ($38.7 million), an 18 percent decline on last year, while the company’s net loss grew by 3 percent to 216 million dirhams. 

 

Despite the drop in top-line figures, the company said its average hotel occupancy rose to 72 percent from 62 percent, while a growth in international guests means that the latter group now represents 45 percent of visitors.
“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. Our job now is to maximize the revenue potential of our established domestic base whilst growing our international visitor numbers,” said Mohamed Almulla, CEO and managing director of DXB Entertainments.
“Building our international visitation, which delivers higher yields, will play an important role in delivering our target of EBITDA (earnings before interest, tax, depreciation and amortization) breakeven during the second half of 2020. Our target is to achieve upwards of 60 percent international visitation.”
This will be achieved through the group’s hotel strategy, strategic partnerships and the expansion of its Motiongate Dubai and Bollywood Parks, Almulla added.

FASTFACTS

60%

Proportion of international visitors targeted by DXB Entertainments


HSBC France to leave its Champs Elysees headquarters

Updated 18 min 46 sec ago

HSBC France to leave its Champs Elysees headquarters

  • HSBC France has a project of moving its headquarters by 2020 to 38 av Kleber
  • The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management

PARIS/LONDON: HSBC France said on Wednesday its teams will leave a prestigious headquarters on Paris' Champs Elysees avenue by 2020 in an emblematic move ahead of the planned sale of its retail business in the country.
The exit and planned sale, following a strategic review of the group's French retail activities, are part of a broader cost-cutting effort under interim Chief Executive Noel Quinn.
"HSBC France has a project of moving its headquarters by 2020 to 38 av Kleber, 500 meters away from its actual headquarters that was sold in 2010," the bank said in a statement.
The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management.
Another 500 employees will be moved to HSBC's hub in La Defense business district which now houses 4,000 of the bank's employees and to branches close to the Champs Elysees building.
HSBC France sold its headquarters at 103 avenue Champs Elysees, and a building in front of it at 15 rue Vernet, to Qatari investors and has rented them since then.
The move is necessitated because the owner wants to regain control of the buildings and also because HSBC needs to save money, a source familiar with the matter said on Wednesday.
Office rents in Paris are rising to levels not seen since at least 2003, according to Immostat data, as vacancy rates are at record lows.
HSBC inherited the historic headquarters when it bought the French retail operations of Crédit Commercial de France (CCF) in 2000.
At the beginning of the 20th century, the building was a hotel where World War One spy and exotic dancer Mata Hari was arrested.
HSBC Holdings has hired U.S. investment bank Lazard Ltd to sell its French retail business, a source close to the matter told Reuters on Tuesday.
Quinn is expected to unveil the first details of his strategic overhaul of the bank when it reports third-quarter earnings on Oct. 28.
Quinn is auditioning for the full-time CEO job and insiders said he is under pressure to take decisive action after Chairman Mark Tucker indicated his predecessor John Flint had not moved quickly enough to turn around the lender's performance.