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Straco Q2 net profit drops 17% on higher expenses, weaker RMB
STRACO Corporation, a developer and operator of tourism-related attractions, on Tuesday posted a 17 per cent drop in net profit to S$9 million for its second quarter ended June 30, from S$10.8 million in the year-ago quarter.
Group revenue fell 6.5 per cent to S$26.4 million, mainly due to lower revenue contributed by its China attractions - Shanghai Ocean Aquarium, Underwater World Xiamen and Lintong Lixing Cable-Car - on lower visitor numbers.
This was partially offset by higher revenue at Singapore Flyer this quarter compared to a year ago, due to higher volume as the Flyer was permitted to operate at full capacity since Jan 31, 2019.
Higher expenses such as consultancy, staff cost, insurance, as well as exchange loss of S$390,000 in the quarter due to the weakened renminbi (RMB) currency against the Singapore dollar ate into the bottom line.
Straco's executive chairman Wu Hsioh Kwang said: "Our cash position remains strong with a net cash balance of S$156.5 million, after paying out S$30.3 million in dividends, and making loan instalments and interest repayments of S$6.5 million this half-year."
Separately, the company on Tuesday also announced the appointment of former politician Teo Ser Luck as a non-executive independent director.