Straco Q1 net profit more than triples to $5 million on recovery of Singapore, China attractions
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The improved performance was partly due to the full resumption of the Singapore Flyer’s operations in the first quarter.
ST PHOTO: SHINTARO TAY
Tessa Oh
SINGAPORE - Tourism facilities operator Straco Corporation reported a net profit of $5 million for its first quarter ended March 31, more than triple the $1.6 million recorded in the previous corresponding period.
This was due to the full resumption of the Singapore Flyer’s operations in the first quarter, as well as higher visitor numbers for the group’s attractions in China, the mainboard-listed company said in a voluntary business update on May 29.
In the year-ago period, rides on the Singapore Flyer, which it operates, were suspended for 27 days for spoke cables replacement works and daily operation hours had not fully resumed, the company noted.
Revenue for the first quarter grew 38.2 per cent to $17.3 million, from $12.5 million a year earlier. Meanwhile, operating profit more than doubled to $7.4 million, from $3.1 million the previous year.
While the group has recorded “significant improvement in profitability”, Straco cautioned that the pace of recovery in China remains moderate “as consumers have reduced spending due to persisting challenges in the macro environment”.
Shares of Straco closed flat at 48 cents on May 30. THE BUSINESS TIMES
