SINGAPORE (May 14): Straco Corporation, the developer and operator of tourism-related attractions including the Singapore Flyer, has posted earnings of $8.5 million for the 1Q ended March, more than doubling from its 1Q18 earnings of $3.5 million due to higher revenue.
Revenue for the quarter grew 30.8% on-year to $24.6 million from $18.8 million a year ago with comparably higher revenue contributions from Singapore Flyer as opposed to the corresponding quarter, where revenue was impacted from a two-month suspension of the Ferris wheel’s operations.
This more than offset lower revenue contributions from Shanghai Ocean Aquarium (SOA) and Underwater World Xiamen (UWX), which saw lower revenues in the latest quarter on lower visitor numbers.
Overall visitation figures for 1Q19 grew 22.7% on-year to 986,000 visitors.
Total expenses excluding finance costs fell 2.6% to $13.5 million, mainly due to a decline in operating lease expense to $0.8 million from $1.5 million a year ago with the adoption of the new SFRS (I) 16 Leases, which resulted in the recognition of the right-of-use assets of land leased by Singapore Flyer and UWX.
Repair and maintenance expenses fell 14.2% to $1 million from $1.1 million previously due to the Singapore Flyer’s technical issues in the latter comparative quarter.
Meanwhile, a higher exchange gain of $0.5 million was recorded compared to $0.2 million a year ago with the strengthening of the RMB against the SGD.
Changes in inventories and purchases of goods grew 44% to $0.8 million from $0.5 million in 1Q18.
Staff costs widened 7.4% to $5.8 million from $5.4 million a year ago.
Citing recent GDP figures for both China and Singapore, Straco notes strong industrial production and greater spending by Chinese consumers.
It also expects the recently-announced expansion plans of Singapore’s two integrated resorts to benefit the local tourism industry, thus contributing to the inflow of visitors looking for new attractions and experiences.
Shares in Straco closed flat at 76 cents on Tuesday.
