The operator of Magic Planet FECs and Vox cinemas in the Middle East, Majid Al Futtaim, saw its earnings fall 19 per cent during 2020.
Most of that revenue comes from the group’s huge shopping malls operation that was badly hit by the Covid-19 pandemic.
According to the The National News in Dubai, EBITDA at MAF fell to Dh3.8bn (€850.8m) and revenues fell seven per cent to Dh32.6bn (€7.1bn). The company, that operates 27 shopping malls across the Middle East, is not publicly listed, but discloses its earnings.
The pandemic led to movement restrictions and the temporary closure of some properties, but notably the FEC chain and cinemas. MAF’s Ventures division, that includes the Vox cinemas and FECs were closed for lengthy periods and the division’s revenues fell 49 per cent to Dh1.4bn (€313m) and EBITDA dropped 122 per cent to minus Dh92m (€20.5m).The hotels division saw a 60 per cent drop in occupancy rates.
Although retail sales were good before the pandemic brought in restrictions, they subsequently fell sharply. Online sales, however, rose significantly, by 118 per cent. CEO Alain Bejjani forecast that this trend would accelerate sharply after the restrictions are removed.
He said, additionally, that the group would continue to invest in "new capabilities." Currently, the company operates in 17 international markets, employing more than 43,000 people. On-going construction work that will entail more FEC openings include the City Centre Al Zahia Mall in Sharjah, UAE, the Mall of Oman and the Mall of Saudi.
