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Entertainment and attractions company, Dolphin Cove has suffered severe losses during 2020, reversing the gains made the year before in 2019.

The losses incurred by Dolphin Cove during the pandemic year are indicative of the haemorrhaging that took place in the tourism sector, where the company is a major player. Dolphin Cove ended 2020 with a net loss of US$1.13 million in comparison to the net profit of US$1.61 million booked in 2019.

Net loss for the fourth quarter amounted to US$264,859 compared to the net loss of US$509,833 for the comparable period in 2019. Loss before taxation for the year amounted to US$1.43 million coming from the profit of US$2.29 million in 2019.

However, the publicly traded entertainment and dolphin attractions company benefitted in 2020 from a tax credit of US$305,219 relative to 2019 tax expense of US$673,307.

Big drop in revenues, which nosedived by 71%

Revenues at the company suffered severely as a result of the pandemic, which led to a three-month closure of the tourism sector, its main income source. Total revenues for 2020 amounted to US$4.28 million, a 71 per cent decrease when compared to US$14.87 million booked in 2019.

For the December quarter, total revenues declined by 79 per cent to close the period at US$668,236 versus US$3.23 million in the previous year. Revenues from Dolphin Attraction contributed US$2.24 million to total revenue; this represents a 72 per cent decline when compared to the US$8.08 million reported in 2019. 

Revenues from the Ancillary Services totalled US$2.04 million, down by 70 per cent from last year’s US$6.80 million. Total direct cost for the period totalled US$782,081, which was 57 per cent less than the US$1.81 million reported in 2019.

Gross profit for the period dipped by 73 per cent, amounting to US$3.50 million relative to 2019’s total of US$13.05 million. Other Income amounted to US$367,295 (2019: US$230,662) for the year ended December 31, 2020.

Loss on disposal of live assets totalled $81,190 (2019: $290,748).

Big containment in expenses

Total operating expenses decreased by 51 per cent, moving from US$10.45 million in 2019 to US$5.10 million in 2020. Of this selling expenses fell 57 per cent to US$1.66 million (2019: US$3.88 million), other operations fell from US$4.69 million in 2019 to US$2.61 million, while administrative expenses fell 56 per cent to US$820,717 (2019: US$1.88 million).

Operating loss before finance income and taxation closed the year ended December 31, 2020 at US$1.32 million (2019: operating profit of US$2.55 million). Finance income decreased by 45 per cent, totalling US$51,782 relative to US$93,644 last year.

Finance cost reported a 52 per cent decrease from US$353,093 for the same period in 2019 to US$169,866 for the period under review. The loss per share unit for the twelve months totalled US$0.0029 relative to earnings per share of US$0.0041 in 2019.

Steady decline in assets in 2020

As at December 31, 2020, the company’s assets totalled US$30.36 million, eight per cent less than the US$33.11 million reported as at December 31, 2019. The movement was as a result of a US$1.15 million decrease in ‘Cash and cash equivalent’ which totalled US$381,395 relative to US$1.53 million in 2019.

Additionally, ‘Account receivables’ fell by 53% to end at US$802,432 (2019: US$1.71 million).