Straco Corp swings into black in H1 on China reopening, higher Singapore Flyer revenue
STRACO Corporation, which operates tourism facilities such as the Shanghai Ocean Aquarium and the Singapore Flyer, reported a net profit of S$6.4 million for the half year ended June 2023.
This puts it back into the black, after a net loss of S$8.5 million in H1 2022.
The S$6.4 million net profit takes into account an exchange loss of nearly S$1.5 million as the renminbi weakened against the Singapore dollar in the current period, the company said in an earnings announcement on Monday (Aug 14).
The improved business performance came on the back of higher revenues across all of its three Chinese attractions as China eased its strict Covid-19 measures in December 2022.
The Singapore Flyer also reported significantly higher revenues as international visitor arrivals gradually recovered – an improvement from last year when rides were suspended for about three months due to a technical issue found during a routine maintenance inspection, said the company.
For the first half of the year, Straco posted a 264 per cent gain in revenue to S$32.1 million, more than three times that of the S$8.8 million revenue it earned in H1 2022.
Earnings per share for the half year stood at 0.75 Singapore cent, compared to a loss per share of 0.99 cent in the same period last year.
The company did not declare a dividend as it usually pays out a final dividend annually at the end of the financial year.
Straco Corp shares ended unchanged at S$0.48 on Monday, before the results announcement.
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