Singapore Flyer operator Straco H1 profit down 49% at S$5.4 million
Dip is attributed to a less buoyant economic outlook, which has affected consumers’ confidence and discretionary spending on leisure activities
[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.
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.
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