SINGAPORE (May 10): Straco Corporation, the developer and operator of tourism-related attractions, saw its earnings drop 60.1% to $3.6 million for the 1Q ended March, from $8.9 million a year ago.
1Q18 revenue fell 31.7% to $18.8 million, from $27.5 million a year ago.
This was mainly due to the suspension of rides at the Singapore Flyer for more than two months since Jan 25 due to a technical issue. Ride operation resumed on Apr 1 following approvals from the authorities.
Shanghai Ocean Aquarium and Underwater World Xiamen also reported lower revenues this quarter on lower visitor numbers.
Overall visitation to Straco’s attractions fell 24.7% to 0.8 million in 1Q18.
As at end March, cash and cash equivalents stood at $193.0 million.
“The outlook of China tourism remain positive, given the rapid development of the tourism ecosystem through social media and mobile payments. As reported, the country will deepen the implementation of integrated tourism this year, and will continue to eliminate illegal tourism businesses and practices, which bodes well for our future development in China,” says Wu Hsioh Kwang, Straco’s executive chairman.
Shares of Straco closed half a cent lower at 77.5 cents on Thursday.
