Singapore Flyer operator Straco H1 profit down 49% at S$5.4 million
[SINGAPORE] Tourist attraction developer and operator Straco has posted a 49 per cent decrease in net profit to S$5.4 million for the first half ended Jun 30, down from S$10.5 million in the previous corresponding period.
On Monday (Aug 11), the group, which operates the Singapore Flyer as well as several attractions in China, attributed this to a “less buoyant” economic outlook, which has affected consumers’ confidence and discretionary spending on leisure activities.
Straco’s executive chairman Wu Hsioh Kwang said: “Despite the economic slowdown, the tourism sector remains resilient in both markets that the group operates in. That said, tourists are showing greater caution with discretionary spending.”
Revenue fell 9 per cent to S$32.7 million, down from S$35.9 million in the previous corresponding period.
Revenue generated at the Singapore Flyer fell to S$14.3 million, down from S$14.6 million.
Meanwhile, its revenue from three attractions in China was S$18.4 million, about 13 per cent lower compared to a year ago. Its attractions in China include the Shanghai Ocean Aquarium, Lixing cable car service at Mount Lishanand Underwater World Xiamen.
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Overall attendance to all the attractions totalled 1.29 million visitors for the half year, 12 per cent lower than the corresponding period of 1.47 million visitors a year ago.
The group reported a net profit of S$5.4 million for the first half of the year, including an exchange loss of S$1.24 million, while an exchange gain of S$380,000 was recorded in the corresponding period.
Earnings per share for the period decreased to S$0.63, from S$1.23.
Straco shares closed S$0.01 or 2.4 per cent higher at S$0.425 on Monday, before the announcement.
