TOURISM facilities operator Straco Corporation on Thursday (Feb 29) recorded a net profit of S$19.3 million for the second half of 2023, reversing from a S$2.3 million net loss in the year-earlier period.
This came as revenue surged 158.3 per cent to S$50.1 million, from S$19.4 million the year before.
The company, which operates the Singapore Flyer, attributed the income surge to the 2022 financial half’s low base. That was when Chinese municipal authorities were still imposing strict Covid-19 measures, it noted.
It pointed out that revenue generated by its attractions in China were significantly higher due to a jump in visitor arrivals during the summer holidays and National Day golden week holidays as domestic tourism recovered strongly and returned to pre-Covid normalcy.
The group also reported higher revenue from the Singapore Flyer, on a rise in ticket revenue from the tour group segment as international tourist arrivals continue to recover and ride operations gradually resumed to normal operating hours.
Formula1, as well as an increase in net rental income from retail leases and event space rental, lifted income as well, the company said.
Overall, the company’s attractions hosted more than two million visitors in the second half, 216 per cent higher than the corresponding period, which saw just about 650,000 visitors.
The group meanwhile noted that its other income for the second half rose on higher amounts from government grants including the wage support grant and claims corresponding to the Singapore Tourism Board’s marketing partnership programme.
Income from concessionaire sales and interest income rose as well.
For the full year, the company’s income came in at S$82.1 million, 191 per cent higher than FY22 when there were several disruptions to operations at its attractions, including a three-month suspension of rides on the Singapore Flyer due to a technical issue.
The board has proposed a first and final cash dividend of 1.5 Singapore cents per share, and a special cash dividend of 0.5 cents per share for the financial period.
The total dividend proposed is double the one cent per share declared this time last year.
Shares of Straco Corporation rose 2.9 per cent to S$0.53 on Thursday, before the results’ release.
