The story of Dubai Parks and Resorts continues to be one of the most fascinating and baffling in theme parks around the globe. Consisting of top brands like LEGO, Sony and Dreamworks, the parks have struggled to make a profit since opening in 2016.
Now here we are in 2020 and DXB (the company who owns Dubai Parks and Resorts) are reporting a breakeven point for the first time. According to a report in Gulf News, the fourth quarter was the first time in company history that they broke even. That’s right, this company has never actually turned a profit for investors.
As a matter of fact, since the DXB stock started trading, investors have lost 86% of the stock’s value. If you’re a DXB stockholder and have hung in there, I tip my hat to you. How did they get to this historic moment in company history? Was it higher attendance?
Actually, overall attendance was down at their parks overall during 2019. That’s right. In reality, they just ran a more efficient business and able to cut their operating costs. The big looming question? How long is this sustainable?
With the Dubai 2020 Expo on the horizon, everything hinges on this event. If it goes well, I’m sure the hope is Dubai Parks and Resorts will turn around. If not? I can’t see these parks lasting any longer beyond 2021. Your thoughts?
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