Straco Q1 net profit more than triples to S$5 million on recovery of Singapore, China attractions

TOURISM facilities operator Straco Coproration reported a net profit of S$5 million for its first quarter ended Mar 31, 2024, more than triple the S$1.6 million recorded in the previous corresponding period.

This was due to the full resumption of the Singapore Flyer’s operations in the first quarter, as well as higher visitor numbers for the group’s attractions in China, the mainboard-listed company said in a voluntary business update on Wednesday (May 29).

In the year-ago period, rides on the Singapore Flyer, which it operates, were suspended for 27 days for spoke cables replacement works and daily operation hours had not fully resumed, the company noted.

Revenue for the first quarter grew 38.2 per cent to S$17.3 million, from S$12.5 million a year earlier. Meanwhile, operating profit more than doubled to S$7.4 million, from S$3.1 million the previous year.

But while the group has recorded “significant improvement in profitability”, Straco cautioned that the pace of recovery in China remains moderate “as consumers have reduced spending due to persisting challenges in the macro environment”.

Shares of Straco closed 1 per cent or S$0.005 lower at S$0.48 on Wednesday before the announcement.