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Dubai firm reduces salaries, benefit structure of employees

Khaleej Times 2019-09-09 18:56:24

Dubai-listed, DXB Entertainments, previously known as Dubai Parks and Resorts, has reduced salaries and the benefit structure of employees, as part of its cost saving initiative to achieve its financial targets.

The company said in a statement posted on the Dubai Financial Market that Meraas Group, a shareholder in the company, will bear the ongoing cost of reducing the salaries and benefits of UAE citizens to ensure their welfare and to provide nationals with sustainable jobs. The company, however, didn't share details about the impact of its realignment of its salary and benefits structure on expat workers.

"As part of the efficiency programme, the company has realigned its salary and benefit structure, after carefully considering relevant market benchmarks from an independent third-party," it said in a statement posted on the Dubai Financial Market, where it is listed.

DXB Entertainments is developing an efficiency programme which will include identification and implementation of cost saving initiatives to support its target of achieving Ebitda (earnings before interest, taxes, depreciation and amortisation) breakeven by the second-half of 2020, it added.

Its operating cost during H1 2019 decreased to Dh309 million, compared to Dh361 million during the same period last year. First-half 2019 net loss shrank 4.5 per cent to Dh448 million as compared to Dh469 million in the corresponding period last year. While second-quarter 2019 net loss fell 10 per cent to Dh233 million.

Total visits in H1 2019 were 1.40 million, compared to 1.46 million in the same period last year, with growth in international visitors, now representing 40 per cent of the visitor mix.

- waheedabbas@khaleejtimes.com

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