Straco posts S$16.3 million Q3 profit as revenue climbs on tourism, China recovery

MAINBOARD-LISTED tourism facilities operator Straco Corporation reported a net profit of S$16.3 million for its third quarter ended Sep 30, 2023.

This put the company firmly in the black, compared to the narrow profit of S$175,000 in the same quarter last year.

Revenue for Q3 rose to S$35.5 million from S$11.7 million a year earlier, Straco said in a bourse filing on Friday (Nov 24).

The company operates multiple tourist facilities in China, including the Shanghai Ocean Aquarium and Underwater World Xiamen. It also operates the Singapore Flyer at Marina Bay.

Straco said that the return of summer crowds in China was a major contributing factor to its increased revenue, adding that there had been no business disruptions during the three-month period.

Revenue from the Singapore Flyer was also “significantly higher”, corresponding with an increase in the number of international visitors since the full lifting of Covid-related curbs from February 2023.

Revenue for the first nine months of the current financial year stands at S$67.5 million, up from S$20.6 million for the corresponding period in FY2022.

The company’s 9M FY2023 profit of S$22.7 million is a reversal from a loss of S$8.3 million for the same period a year earlier.

Straco said its financial position “remains strong”, with net cash holdings of S$165.9 million as at Sep 30.

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Shares of Straco closed 2.4 per cent or S$0.01 lower at S$0.40 on Friday, before the bourse filing.