Tourism attraction operator Straco Corporation S85 has posted revenue of $31.4 million for 3QFY2024 ended Sept 30, down 11.4% y-o-y.
According to a Nov 22 bourse filing, further weakening of the renminbi weighed on the group’s profitability with an exchange loss of $1.2 million recorded in 3QFY2024, compared to an exchange gain of $0.23 million recorded in 3QFY2023.
Operating profit, meanwhile, fell nearly 25% to $17.8 million, while profit after tax fell 27.7% y-o-y to $12.5 million in 3QFY2024.
Profit attributable to shareholders of the Mainboard-listed company fell 28.6% y-o-y to $11.7 million during the quarter.
Financial metrics for 9M2024 were flatter y-o-y, with revenue down 0.3% y-o-y to $67.3 million, operating profit down 4% to $33.3 million, profit after tax down 1.7% y-o-y to $23.6 million and profit attributable to shareholders down 2.5% y-o-y to $22.2 million.
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Straco Corporation, listed on the Singapore Exchange S68 in 2004, operates assets such as the Shanghai Ocean Aquarium; Lixing cable car service at Mount Lishan in Shaanxi province; Underwater World Xiamen; and the Singapore Flyer.
For the quarter under review, the group’s businesses in China recorded profitable performance and contributed positively.
“While the cable car operation in Xian reported improvement in revenue and profitability over that of [the] corresponding period in 2023, both aquariums in Shanghai and Xiamen registered drops in revenue and profit, due to reduced spending among Chinese tourists and heightened competition,” says the company.
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Meanwhile, the Singapore Flyer reported higher revenue and profit in 3QFY2024 compared to the corresponding period last year, amid an increase in international visitors and support from local residents. Straco did not provide a breakdown by geography.
Net cash generated from operating activities amounted to $21.44 million in 3QFY2024, 15% lower y-o-y.
The group’s financial position “remains strong” with net cash holdings of $172.51 million as at Sept 30.
Shares in Straco closed flat at 46.5 cents on Nov 22.
Table: Straco Corp
