Dubai Parks and Resorts reports loss of Dh29m in Q2

Dubai Parks and Resorts reported a loss of Dh29 million for the second quarter 2015 as it expects to generate first revenues by the end of 2016 following the opening of the parks to the public.

“Our second quarter 2015 financial results are in line with our plans. Our total assets stood at Dh7 billion as at the end of second quarter. The cumulative project expenditure including land acquired amounted to Dh3.8 billion, an increase from Dh3 billion as at the end of the previous quarter," the company said in a statement.

“There were no operating revenues and the loss was Dh29 million for the period ended 30 June 2015.  The first revenues are expected towards the end of 2016 following the opening of the parks to the public,” it added.

Raed Al Nuami, Chief Executive Officer, Dubai Parks and Resorts, said: “We are confident in our ability to open the doors of Dubai Parks and Resorts to its first visitors in October 2016 to support Dubai’s Tourism Vision of attracting 20 million visitors a year by 2020.”

The project infrastructure is 57 per cent complete as at the end of second quarter, up from 43 per cent in the first quarter, ride engineering and manufacturing is progressing as planned with 52 per cent complete and 80 per cent of our procurement has been completed.

Hollywood-themed Motiongate Dubai, Bollywood Parks Dubai, and Legoland Dubai are the three theme parks.

The company signed two partnerships in the second quarter of 2015.

First was the deal with  Picsolve International  in April, which will create one of the world’s largest photography integrations that is expected to generate over Dh100 million over a five year period.

The second was with Dnata, one of the largest international travel sales networks, which will be the preferred travel partner.

Besides, the company announced the start of retail and dining leasing opportunities within Riverland Dubai, the main entrance to the destination as well as the central meeting point for visitors from all of our parks, featuring over 50 outlets.

“Already, we have signed four lease proposals, accounting for 7 per cent of the total leasable space in the short time since our announcement,” the company said.

“The construction of our park infrastructure is progressing quickly with the substation and district cooling elements on track for completion before the end of 2015,” Al Nuami said.

In the second quarter, the company commenced the first phase of transporting 1.2 million shrubs, 9,500 trees and 6,600 palms to our on-site nursery, which will envelop our 100 rides and attractions in a green oasis.

The Roads & Transport Authority recently awarded a Dh244 million contract to the China State Construction Engineering Corporation Middle East who, over the next 14 months, will build the dedicated access roads from Sheikh Zayed Road to the destination.

The company has over 160 employees in the corporate head office and over 9,000 workers on site. Projected revenue in the first full year of operation is estimated at Dh2.4 billion with over 5,000 jobs generated across the sector, it said.

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