Straco Corporation sees drop in revenue and profit for 3QFY2024 and 9M2024

SINGAPORE: Straco Corporation reported a decline in its financial performance for the third quarter of fiscal year 2024 (3QFY2024).

The company posted a revenue of S$31.4 million for the period ending Sept 30, marking an 11.4% drop compared to the same quarter last year.

According to The Edge Singapore, a filing on Nov 22 revealed that the weaker renminbi impacted the group’s profitability, resulting in an exchange loss of S$1.2 million for 3QFY2024, compared to a gain of S$0.23 million in 3QFY2023.

Operating profit dropped by nearly 25% to S$17.8 million, while profit after tax decreased 27.7% to S$12.5 million year-on-year (YoY).

Profit attributable to shareholders also dropped 28.6% to S$11.7 million for the quarter.

For the first nine months of 2024 (9M2024), Straco’s financials were largely flat. Revenue for the period was slightly lower at S$67.3 million, down 0.3% from the same period last year.

Operating profit fell 4% to S$33.3 million, while profit after tax decreased by 1.7% YoY to S$23.6 million. Profit attributable to shareholders was down by 2.5% YoY, reaching S$22.2 million.

Straco’s businesses in China had mixed results.

According to the company, the cable car operation in Xian improved revenue and profit compared to 2023. However, the Shanghai Ocean Aquarium and the Underwater World Xiamen saw lower revenue and profit.

The company said this was due to reduced spending by Chinese tourists and increased regional competition. Meanwhile, the Singapore Flyer, one of Straco’s key attractions, performed better.

Revenue and profit from the Singapore Flyer increased in 3QFY2024, driven by higher international visitors and continued support from residents.

In its report, Straco did not break down its revenue by region. Net cash from operating activities was S$21.44 million in the third quarter, a 15% drop from the same period last year.

However, Straco’s financial position remains strong, with net cash holdings of S$172.51 million as of Sept 30. /TISG

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