Ayub Ansari, senior analyst at SICO, told Zawya by email that the higher than estimated Q3 loss could be attributed to “lower than expected revenue generation”.
“DXBE continues to face challenges in (the) meaningfully growing park footfall, which is being reflected in (a) weak topline growth. Revenues for Q3 18 were actually down by 11 percent year-on-year,“ he added.
Earlier in October the company announced to the exchange that it “attracted over 1.96 million visits during the first nine months of 2018, an increase of 33 percent compared to the same period last year.” (Read more)
Q3 visits reached 501,394, an increase of 5 percent compared to same period last year, the company said in a press release on Tuesday. It also said that 70 percent of revenue in Q3 2018 was driven through admissions and 27 percent through in-park spend.
Official data shows that total arrivals for the first 8 months of 2018 has been at 10.44 million compared to 10.4 million for the same period last year.
“Going forward, operating environment for the company will remain tough on slowing growth in Dubai tourist arrivals… increased competition in the theme park space – especially with the opening up of Warner Bros. Abu Dhabi as well as weak macros impacting disposable spending of the resident population,” Ansari added.
Dubai Parks and Resorts comprises four theme parks built under phase one – Bollywood Parks Dubai, Legoland, Legoland Water Park and Motiongate. (Read more)
The company’s stock is now down 44.41 percent since the start of the year, underperforming Dubai’s stock market index which is now 16.45 percent down in 2018.
According to data from Eikon, one analyst rated DXBE’s stock as “Strong Buy”, while three analysts rated the stock as “Hold” and one analyst rated the stock as “Strong Sell”.
Dubai’s index closed 0.74 percent higher on Tuesday, Abu Dhabi’s index rose 0.63 percent, Saudi Arabia’s index closed 0.13 percent higher, Oman’s index edged up 0.14 percent, Bahrain’s index edged 0.12 percent lower while Egypt’s index was up 1.52 percent and Kuwait’s stock market was closed.
(Reporting by Gerard Aoun; Editing by Shane McGinley)
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