SINGPORE (Aug 14): Straco, the developer and operator of tourism-related attractions, announced that its 2Q17 earnings increased 23.4% to $11.4 million from $9.3 million a year ago.
Revenue rose 8.4% to $30.2 million compared to $27.9 million in 2Q16.
This was mainly attributable to higher revenues contributed by the Shanghai Ocean Aquarium (SOA), Lixing Cable Car (LCC) and Singapore Flyer, as visitor numbers to these three attractions increased.
However, lower revenue was reported at Underwater World Xiamen (UWX) for 2Q17 as there were fewer visitors compared to a year ago.
For the 2Q17, overall visitor numbers to all the attractions increased 8.3% y-o-y to 1.23 million visitors.
Finance cost for 2Q17 decreased 33.3% to $287,000 from $430,000 in 2Q16, due to lower principal outstanding for the term loan as well as lower interest rate this quarter.
On the outlook, China’s tourism sector is expected to maintain strong through 2017.
According to the China National Tourism Administration, direct investment in the industry is predicted to increase more than 20% to reach RMB 1.5 trillion ($306 billion).
Meanwhile, the Singapore economy grew 2.5% y-o-y in 2Q17, based on advance estimates from the Ministry of Trade and Industry. On the tourism sector, it was reported that the outlook for Singapore Tourism looks positive this year.
Shares in Straco closed 1 cent higher at 84 cents on Monday.
