DXB Entertainments PJSC
Transcript of DXB Entertainments PJSC
DXB Entertainments PJSCQ1 2017 Earnings Release Presentation10 May | 2017
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Contents
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Highlights of Q1 2017
Financial Results
Corporate and Operational Update
Financial Summary
Highlights of Q1 2017
Financial Results
Corporate and Operational Update
Conclusion
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Highlights of Q1 2017
Total RevenueAED 159.9 million
Key Q1 2017 performance highlights
5Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
Theme Park RevenueAED 125.4 million
Visits586,355
Revenue per capAED 213.9(theme parks)
Total assetsAED 12.5 billion
Drawn downAED 3.8 billionFrom AED 4.2 billion facility
1 January 2017 – 31 March 2017
Total visitors Jan-Mar 2017
4.57mUp 11.2% YOY
Q1 2017 Q1 2016 % changeIndia 578 469 23%Saudi Arabia 440 476 -8%UK 350 334 5%China 230 140 64%Oman 214 322 -33%Iran 181 130 39%Pakistan 178 152 17%USA 176 166 6%Germany 172 171 0%Kuwait 131 119 10%Total 2,650 2,479 6.9%Russia 126 61 106%
Tourism growth trends
6Source: Department of Tourism and Commerce Marketing(DTCM)
7% – Russia, CIS, EE (Eastern Europe)
22% – Western Europe11% – North Asiaand
South-East Asia
18% – South Asia19% –GCC
12% – MENA
4% –Africa
1% – Australasia
6% –Americas
Source of visitors by region (% in Jan-Mar 2017)
Visitors from top 10 source marketsJan-Mar 2017 (’000 visitors)
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Q1 2017 Financial Results
Average occupancy
21%Revenue per capita
AED 213.9Theme parks
Revenue breakdown
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Totalrevenue
AED159.9m
ThemeparkRetail HospitalityOthers
78%
9%
7%
6%
Theme parkrevenue
AED125.4m
AdmissionsIn-park spend Others
68%
24%
8%
Retail revenue
AED14.4m
LeasingNon-leasing
76%
24%
Visits
586,355GLA leased
84%Average daily rate
AED 795
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited. The Group currently determines and presents financial information as a single operating segment based on the information that is provided internally to corporate management for decision making.
1 January 2017 – 31 March 2017
Hospitality revenue
AED10.4m
AccommodationOthers
70%
30%
Loss for the period
AED228mExcluding the pre-operating expenses and interest income from Six Flags Dubai
Operating Expenses
AED214mExcluding the pre-operating expenses and interest income from Six Flags Dubai
Summary financial results
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Financial PerformanceAED millions
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
1 January 2017 – 31 March 2017
Q1 2017 Q1 2017 Adjusted*
Revenue 160 160Cost of Sales (13) (13)Gross Margin 147 147Operating Expenses (285) (214)Depreciation (111) (111)Interest / Financing Costs (Net) (43) (50)Loss for the period (292) (228)CF hedging gain (loss) on FV 4 4Total Comprehensive loss for the period (288) (224)
* Adjusted Q1 2017 performance excludes pre-operating expenses of AED 71 million from operating expenses and AED 7 million of interest income from Six Flags Dubai from Interest/Financing Costs
Excluding pre-operating expenses and interest income from Six Flags Dubai
Summary financial results
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Totalassets
AED12,541mProperty andequipment 75.14%Investment properties 5.01%Investment in a Joint Venture 0.14%Inventories 0.38%Due from a related party 0.18%Trade and other receivables 1.15%Derivative financial instruments 0.33%Other financialassets 3.34%Cash and bankbalances 14.34%
Dec 2016: AED 12,814 million
For the three months ended 31 March2017
Movement in CashAED millions
OperatingInvesting- other financial assetsInvesting- property and equipment and investment propertiesInvesting - othersFinancing
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
1 January 2017 – 31 March 2017
Financing
AED3.8bnAED 3.8 billion drawn down from our AED 4.2 billion financingfacility for Phase I of DPR
(529)
571
(64)(10)
295
(600)
(400)
(200)
-
200
400
600
800
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Corporate and Operational Update
Total Visits
586,355
Sales and Marketing
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Visits breakdown (bycategory)
Walk-in 33%Online 24%Tour operator 14%Others 29%
Key visitation factors:
Key School holidays during the period positively impact attendance• Saudi school holidays• Kuwaiti school holidays• UAE school holidays
Rainy weather during the period negatively impacts attendance
Jan-Mar 2017
Note: Others include Schools, Corporates, Annual passes, VIPs and Complimentary passes
Visits breakdown
Sales and Marketing
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Secured pre arrival awareness and conversion with Coop Campaign in GCC, UK, Germany and India
• Reselling via 102 active DMC’s operating over 20 markets
• Direct distribution set up in Africa, GCC and China with 30 active tour operators
• Hosted 9 FAM trips for a total of 780 attendees from 12 markets
• Hosted 39 resort experiences for a total of 524 attendees from 12 markets
Focused effort on post arrival sales• 120 active hotels tour desk• 17 preferred partner hotel contracted
packaging DPR on pre arrival • Shuttle operation from partner hotels
live• Hosted VIP guided tours for over 300
concierge
Launched segmented consumer approach • Launched resident rate on March 1st
• Focus international market on multi park and multi day with early booking rates
Activated alternative segment • Hosted 49 MICE events in the parks • Over 100 schools welcome in Q1 for
educational experiences
Key marketing activations in the UK, Germany, India and Switzerland.
• Focus on coming summer holiday in India and a GCC Summer Campaign
New SVP of Sales and Marketing
David Loiseau, joins as Senior Vice President of Sales and Marketing. David has over three decades of sales and marketing experience, and most recently held the position of Vice President Sales with Kerzner International , Atlantis the Palm.
Sales and Marketing
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Theme Park Operations
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Operating during summer and Ramadan
Effective 21 May 2017
Attractive summer packages announced AED 195, one park + unlimited food AED 295, two parks + unlimited food
Summer operating hours with later start MOTIONGATE™ Dubai 2pm-10pm Bollywood Parks™ Dubai 4pm-12am LEGOLAND® Dubai 12pm- 8pm LEGOLAND® Water Park 10am–7pm
Tram transportation available between the parks and through Riverland™ Dubai
MOTIONGATE STOP
FRENCH VILLAGE / BUS-TAXI STOP
BOLLYWOOD STOP
LEGOLAND STOP
RT2 - VIP CAR PARK STOP
RT1 - BOARDWALK STOP
RT3 - FRENCH VILLIAGE STOP
R I V E R L A N D - T R A M R O U T E
RT1 - VIP CAR PARK STOP
Summer Operational Strategy
Air-conditioned trams will transport guests through Riverland™ Dubai
Over 150 misting fans will be placed strategically throughout Riverland™ Dubai.
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Attraction delivery
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All attractions delivered as at 10th May 2017 except Phase II of MOTIONGATE™ Dubai (The Hunger Games)
January: Madagascar Mad Pursuit – DreamWorks zone in MOTIONGATE™ Dubai
February: Submarine Adventure – LEGOLAND® Dubai Cloudy with a Chance of Meatballs River Expedition – Colombia Pictures zone in
MOTIONGATE™ Dubai
March: Kung Fu Panda: Unstoppable Awesomeness – DreamWorks zone in MOTIONGATE™ Dubai
April: 3 rides within the How to Train Your Dragons area - DreamWorks zone in MOTIONGATE™
Dubai Shrek’s Merry Fairy Tale Journey - DreamWorks zone in MOTIONGATE™ Dubai Don the Chase – Bollywood Parks™ Dubai
Remaining attractions to be delivered• Panem Aerial Tour – Lionsgate zone at MOTIONGATE™ Dubai – target June• Capitol Bullet Train – Lionsgate zone at MOTIONGATE™ Dubai – target June
Human Resources
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Employee breakdown
Theme parks 70%
Retail andhospitality 18%Shared services and corporate 12%
68%Male
32%Female
2,995As at 31 March 2017
Close to 3,000 multi-cultural employees from 86 nationalities.
Phase II updateSix Flags DubaiOn track to open in late 2019
Procurement:• 7 ride agreement are signed. Agreement Signing of 10 rides
are in final stage, remaining 4 rides are under negotiationwith Ride Vendors.
Design Development:• 90% DD progressing for multiple packages.
Construction:• Enabling works and access roads completed• Nitro splash pond, laydown area & retention basin
substantially completed. BOH Car Park, & BOH buildingssubstructure works commenced.
LEGOLAND Hotel
Project Management• Contracts for lead consultants finalized.
Design & Site Progress• Detailed Design stage for Facility works completed and
currently VE exercise in progress.• Detailed Design stage for Infrastructure works completed
and for Area Development being developed.• Grading works completed and Erection of Hoarding in
progress.
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Conclusion
Key challenges ahead
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Operating during summer and Ramadan
Q2 and Q3 are expected to be lower performing quarters due to Ramadan and the summer months
Effective 21 May 2017 new operating hours, improved transportation service and attractive packages will be implemented to continue attracting visitors during the summer
Increasing attendance numbers from tour and travel
Key focus for the sales strategy is increasing the contribution of the tour and travel to the visitation numbers to ensure targets are met
Ramp-up in contribution from 5% in Q4 2016 to 14% in Q1 2017 shows promising signs of growth
Conclusion
Inbound tourism figures remain strong
Increase in contribution from tour and travel shows promising trend
Ramp-up in operations across the theme parks and Lapita on track
Summer strategy in place
On track for a 20% operational cost reduction
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Contact UsInvestor Relations Contacts
Marwa GoudaHead of Investor Relations
Abdulrahman Al-SuwaidiInvestor Relations Officer
www.dxbentertainments.com/investor-relations
DXB Entertainments PJSC
Emaar Square, Building 1, Level 2PO Box 123311, DubaiUnited Arab Emirates
Tel: +971 4 8200 820Fax: +971 4 8200 819
www.dxbentertainments.com
DXB Entertainments IR App
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Our new Investor Relations App is available for download on the iTunes App store and the Google Play store!
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Appendix ISummary Financials for the year ended 31 March 2017
Condensed consolidated statement of financial position
26Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
31 Mar 17 31 Dec 16
Reviewed(AED m)
Audited(AED m)
ASSETS
Property and equipment 9,423 9,465
Investment properties 628 634
Investment in a Joint Venture 18 -
Inventories 48 42
Due from a related parties 22 21
Trade and other receivable 144 90
Derivative financial instruments 41 37
Other financial assets 419 990
Cash and bank balances 1,798 1,535
Total assets 12,541 12,814
EQUITY AND LIABILITIES
EQUITY
Share capital 8,000 8,000
Cash flow hedge reserve 41 37
Accumulated losses (930) (639)
Total equity 7,111 7,398
LIABILITIES
Bank facilities 3,560 3,204
Trade and other payables 1,870 2,212
Total liabilities 5,430 5,416
Total equity and liabilities 12,541 12,814
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
31-Mar-17 31-Dec-16A
ED
Mill
ion
s
Assets
Property and equipment
Investment properties
Investment in a Joint Venture
Inventories
Due from a related parties
Trade and other receivable
Derivative financial instruments
Other financial assets
Cash and bank balances
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
31 Mar 17 31 Dec 16
Equity and Liabilities
Total Equity
Bank facilities
Trade and other payables
As at 31 March 2017
Condensed consolidated statement of comprehensive income
27Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
31 Mar 17 31 Mar 16
Reviewed Reviewed
(AED m) (AED m)
Revenue 160 -
Cost of Sales (13) -
General, administration and operating expenses (334) (40)
Marketing and selling expenses (41) (15)
Other expenses (21) -
Interest (expenses) / income (37) 19
Amortization of borrowing cost (6) (2)
Share of loss from Joint Venture - -
Loss for the period (292) (38)
Cash flow hedge gain / (loss) on fair value 4 (37)
Total comprehensive loss for the period (288) (75)
For the three months ended 31 March 2017
(292)
(38)
(350)
(300)
(250)
(200)
(150)
(100)
(50)
-31-Mar-17 31-Mar-16
AE
D M
illio
ns
Loss for the period
Condensed consolidated statement of cash flows
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Movement in Cash(for three months ended 31 Mar 2017)
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 March 2017 figures are unaudited.
31 Mar 17 31 Mar 16Reviewed Reviewed
(AED m) (AED m)Operating ActivitiesLoss for the period (292) (38)Adjustments for:Depreciation Expense 111 2 Interest expenses / (income) 37 (19)Provision for employees' end of service indemnity 1 1 Amortization of borrowing cost 6 2 Share of loss from Joint Venture - -(Increase) / Decrease in advances to contractors and other receivables (43) 44 Increase in inventories (6) -(Increase) / Decrease in trade and other payables (342) 218 Movement in related party balance (1) (13)Net cash (used in) /generated by operating activities (529) 197
Investing activitiesDecrease in other financial assets 571 (178)Additions to property and equipment (64) (844)Additions to investment properties - (40)Interest received 8 3 Investment in Joint Venture (18) -Net cash (used in) / generated by investing activities 497 (1,059)
Financing ActivitiesProceeds from bank facilities 353 887 Borrowing cost paid (6) (5)Finance cost paid (52) (22)Movement in restricted cash - (14)Net cash (used in) / generated by financing activities 295 846
Net cash movement during the period 263 (16)Cash and cash equivalent at the beginning of the period 1,344 364 Cash and cash equivalent at the end of the period 1,607 348
For the three months ended 31 March 2017
(529)
571
(64)(10)
295
(600)
(400)
(200)
-
200
400
600
800
Operating
Investing-Other Financial Assets
Investing-Property and equipment and Investment properties
Investing-Other
Financing