DXB Entertainments, the Dubai-based leisure and entertainment company and operator of emirate's theme parks, said it has reached an agreement with creditors to restructure Dh4.2 billion ($1.14 billion) in debt linked to the Phase I of the project.

The deal includes a three-year moratorium on principal repayments and covenant testing as well as a revised repayment schedule, the company said in a statement to the Dubai bourse.

DXB Entertainments said it had reached a deal with its majority shareholder Meraas for a total financing of Dh1.2 billion in the form of a convertible instrument, subject to shareholder and regulatory approval.

The company said it will continue paying interest on the debt as per the original agreement.

Announcing its audited financial results for the year ended December 31, 2017, DXB Entertainment said it had shown continued progress against its strategic plan and improvement in visitation numbers, revenue and Ebitda loss.

The net loss for the year was put at Dh1.12 billion. This was mainly due to a Dh478 million loss in non-cash depreciation expense which is normal for a large-scale project of this nature, said the statement.

Unveiling the results, CEO and Managing Director Mohamed Almulla said: "We made good progress during the fourth quarter of the year against our strategic plan. The company increased visits by 66 per cent in Q4 2017, compared to Q3 2017, bringing the total number of visits for the year to close to 2.3 million."

"Revenue for the fourth quarter of the year increased 37 per cent to Dh157 million, compared to the
previous quarter and reached a total of Dh552 million for the year. Our operating costs have been steadily decreasing each quarter from Dh284 million in Q1 2017 to Dh211 million in Q4 2017, and this is a testament to our commitment to generate value for our shareholders," he noted.

Almulla pointed out that the company has a great asset in the form of Dubai Parks and Resorts, which brings unparalleled entertainment and leisure activities to the region.

"In 2017 we focused on revising our pricing and marketing strategy to ensure we continue to drive
footfall and are well positioned to generate long-term returns. Simultaneously, we optimised our cost structure and delivered operational synergies," he said.

"During 2017 we announced an agreement with Meraas, our majority shareholder, to manage a select portfolio of their leisure and entertainment offerings which means we are now managing key Dubai leisure and entertainment assets under one group," he stated.

"This provides us with a diversified portfolio of leisure experiences that we can use for cross selling and marketing purposes in high footfall destinations within the city of Dubai such as City Walk and The Beach," he observed.

"We also incurred costs relating to the Dh4.2 billion debt we have taken on for constructing and delivering Phase I of Dubai Parks and Resorts. Therefore, to accurately measure the operational performance of the business we continue to focus on improving our operational ebitda," explained Almulla.

"I am pleased to report that ebitda showed a steady improvement across the year, and it is clear from our results that the business is ramping up. However, we still have some more work to do," he stated.

"In this regard we are very lucky to be based in the city of Dubai, with access to the most visited international airport in the world and support from our partners such as Emirates, flydubai and Jumeirah, as well as from Dubai’s Department of Tourism and Commerce Marketing authority," he added.-TradeArabia News Service