Singapore Flyer operator Straco Q2 profit falls 5.1% to S$10.8m

MAINBOARD-listed Straco Corporation on Tuesday posted a fall in second-quarter earnings, mainly due to lower revenue contributions from tourist attractions it operates including the Singapore Flyer and the Shanghai Ocean Aquarium (SOA).

For the three months ended June 30, net profit fell 5.1 per cent to S$10.83 million. This translated to an earnings per share of 1.26 Singapore cents for the quarter, down from 1.33 Singapore cents in the year-ago period. 

No dividend has been declared for the current financial period, unchanged from the preceding year. 

Revenue for the quarter also fell 6.4 per cent to S$28.27 million, with overall visitor numbers to all attractions decreasing 1.2 per cent to 1.22 million visitors, the company said. 

For the half-year period, net profit fell 29.3 per cent to S$14.38 million, mainly attributable to losses suffered by the Singapore Flyer following a ride suspension of over two months due to a technical issue. 

Earnings per share for the six-months to June 30 also came in lower at 1.67 Singapore cents from 2.36 Singapore cents a year earlier as revenue fell 18.5 per cent to S$47.07 million.

Said Straco's executive chairman, Wu Hsioh Kwang: "We are happy that the Singapore Flyer had resumed its rides operation from April 1, much to the delight of tourists. Our China operations remained fairly stable for the quarter under review."

"While SOA's revenue had declined mainly on the value-added taxes on ticket revenue accounted and paid upfront starting this year, this has been partly mitigated by higher revenue generated by Lixing Cable Car and Underwater World Xiamen this quarter."

Looking ahead, the company noted that the tourism sectors both in Singapore and China are poised for growth this year.

Straco shares closed at S$0.72 apiece on Tuesday, up 1.4 per cent or one Singapore cent, before the release of its financial results.