Straco Corporation, on July 18, announced that it expects to report a material operating loss and negative operating cashflow for the 1HFY2022 ended June.
The group’s financials were affected by the Covid-19 pandemic, which “continues to have a severe impact on the tourism industry”.
Mainboard-listed Straco’s businesses include the Singapore Flyer, as well as indoor aquariums such as the Shanghai Ocean Aquarium and Underwater World Xiamen.
According to the group, its attractions faced service disruptions and had to adhere to pandemic control measures during the period.
Consequently, revenue across all of its subsidiaries “declined significantly” in the 1HFY2022.
The group says it is taking “prudent and measured steps” to ride over this “challenging time” as the global outlook on the pandemic and the recovery of the tourism industry remains uncertain.
See also: Trump wins Republican nomination, setting up rematch with Biden
“As an operator of public attractions, the group has continued to, and will continue to, ensure that visitors’ experiences are not compromised despite the decrease in business activities, while concurrently reviewing and making operational adjustments to put a lid on business costs and expenditures,” says the group in a statement.
“The group was also impacted by the tight labour market and inflationary pressure, as such, wage cost reduction was not one of the measures sought to be undertaken during the period,” it adds.
The group will announce its results for the 1HFY2022 in August.
Shares in Straco closed 2.5 cents lower or 6.02% down at 39 cents on July 18.
