Dubai-based mall and entertainment operator Majid Al Futtaim, the leading shopping malls, communities, retail and leisure operation across the Middle East, Africa, and Central Asia, has announced a “robust performance over the first half of the year” reporting a revenue of $180.2 million (AED 15.6 billion) despite a revenue decline of 10%, primarily due to the relative stabilisation in the market. Its cinema, leisure and entertainment section remains a key driver in the region.
Majid Al Futtaim – Leisure Entertainment and Cinemas registered a 25% increase in revenue to $136.6 million (AED 502million) despite operating at limited capacities and with curfews in certain countries.
The increase in revenue is mainly due to a lower base in the prior period, when most sites remained shuttered as a result of government actions to contain the spread of COVID-19. Cinemas’ revenue improved by 22% to $114.3 million (AED 420 million), with admissions increasing by 9% to 5.5 million. Cinemas continued its expansion into Saudi Arabia, growing the number of screens in the country by 17 to a total of 141 by the end of June.
Alain Bejjani, Chief Executive Officer of Majid Al Futtaim – Holding said: “Despite the prolonged impact of the COVID-19 pandemic, Majid Al Futtaim has delivered a robust performance over the first half of the year, driven by prudent financial management and a diversified portfolio. While we continue to feel impact from the continued disruption, our strong financial position has enabled us to remain resilient to that pressure and agile in how we respond to the stressors within our operating environment. This has enabled us to continue executing on delivery of our regional growth strategy.
“Over the first half of the year, we have seen encouraging signs of recovery across our markets, as consumers gain confidence in resuming their pre-pandemic activities. In addition to the increased activity across our physical assets, the acceleration of pre-pandemic trends – particularly as they pertain to digital capabilities – continues to gather pace. We remain committed to investing in all areas of our business to ensure we are well-positioned to best serve our customers’ evolving wants and needs.
“Our successes are testament to the drive and determination of our people. Supported by their diligent efforts to drive our growth agenda, we are able to look ahead with confidence and remain steadfast in our support of the communities and markets in which we operate,” he added
Majid Al Futtaim– LEC will continue its expansion in Saudi Arabia, expecting to open a further 13 screens across the Kingdom through the remainder of the year. Other new investments include Mall of Saudi, a major addition to the shopping malls and retail industries that will transform the landscape of Riyadh, with the project set to break ground in Q4 this year and underlining Majid Al Futtaim’s two-decade strong commitment to the Kingdom of Saudi Arabia and contribution to Vision 2030.