Straco to report ‘substantial net loss’ for FY2022
TOURISM attractions operator Straco Corporation is expecting a “substantial net loss” for FY2022, as compared to the net profit recorded in FY2021, the group said on Wednesday (Feb 8).
One reason it cited for the net loss is a decrease in revenue from Straco’s China attractions from FY2021 to FY2022. Additional measures, such as lockdowns imposed by Chinese municipal authorities in line with the zero-Covid policy, impacted visitor numbers, Straco said.
The group also recorded material exchange losses due to the weakened yuan against the Singapore dollar in FY2022. In FY2021, the group recorded exchange gains.
As land lease relief and government grants from job support schemes were discontinued in FY2022, Straco recognised lower wage-support grants compared with the year before.
The group is expecting a decrease in other income compared with FY2021, due to a one-off arbitration award for an insurance claim in FY2021.
Last June, Straco’s subsidiary and operator of the Singapore Flyer, Straco Leisure, was awarded S$103,727 (subject to a 10 per cent deductible) for property damage arising from machinery breakdown, and S$8.2 million for the loss of profits. (*See amendment note)
Shares of Straco fell 4 per cent or S$0.02 to S$0.48 as at 1.49 pm.
*Amendment note: An earlier version of this article gave the wrong figure for Straco Leisure’s award for property damage.
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