Dubai: DXB Entertainments’ net loss widened in 2020, partly due to impairment charges related to property and equipment.
The company reported a net loss of Dh2.7 billion for the year ended December 31, 2020. It lost Dh855 million in the same period a year earlier.
“Severe disruptions in global trade and tourism, and the city-wide lockdowns globally and locally, significantly impacted the Company’s operations and financial performance for the year 2020,” DXB Entertainments said in a statement.
The firm, which owns theme parks and hotels, said its revenue in 2020 fell 71 per cent year-over-year to Dh144 million.
Cutting costs
The company was able to keep a tight lid on its expenses with operating costs falling 49 per cent to Dh285 million in 2020.
Themed move
Meraas Holdings announced a capital restructuring of its DFM listed subsidiary company Dubai Entertainments (DXBE) by purchasing 100 pe cent of the company shares and making it private. The proposed transaction aims to provide a more sustainable debt structure.
The company set a tentative tender price offer of Dh0.08 a share and is a 33 per cent discount over last week’s closing price. The news caused the stock to decline by 5 per cent Monday. DXBE has seen its share price reduce by half over the two-year period.
Comparing its peak share price of Dh1.77 see in early 2016, it has declined by more than 90 per cent with today’s close.