By: Mahmoud Gamal

Dubai – Mubasher: DXB Entertainments’ stock fell during Wednesday’s trades on the Dubai Financial Market (DFM) after the company announced widening its losses by 593.7% year-on-year in the second quarter of 2017.

By 12:25 pm UAE time, DXB Entertainments’ stock dropped 1.8% to AED 0.815 after 32.7 million shares changed hands through 348 transactions at a turnover of AED 26.46 million.

Earlier on Wednesday, the theme park operator reported AED 286.15 million ($77.88 million) in losses in Q2-17; a sharp increase from AED 41.25 million ($11.22 million) in the same period of 2016.

Market analyst Mannaf Al Melouhy commented that DXB Entertainments’ results were in line with expectations and were “nothing new” considering the entertainment sector’s calmness during that period in the UAE.

DXB Entertainments, which commenced operations in 2016, operates theme parks in Dubai.

The DFM-listed company has continued to suffer from increased cost of revenues, the analyst told Mubasher.

Operating, general, and administrative expenses jumped 473% to AED 284.4 million in Q2-17 from AED 49.66 million in the year-ago period, while sales and marketing expenses surged 501% to AED 37.56 million in Q2-17 from AED 6.25 million in Q2-16.

Al Melouhy does not expect DXB Entertainments to see positive results until the end of 2017, noting that on the long-run, DXB’s stock would be good for investment.

Translated by: Nada Adel Sobhi