Tourist consumption confidence weakens, Straco Group's third-quarter performance lags behind last year | Lianhe Zaobao
Straco Group's third-quarter performance was weaker than last year, with net profit decreasing by 8% year-on-year to 10.73 million yuan, revenue falling by 13.4% to 27.22 million yuan, and operating profit dropping by 11.6% to 15.72 million yuan. Weak consumer confidence in China affected performance, although the Shanghai Ocean Aquarium showed growth, revenues from the Xiamen Aquarium and Xi'an Cable Car declined. The group remains cautiously optimistic about the tourism industry's outlook
Despite the company's operations in China and Singapore remaining profitable, Straco Corporation's key performance indicators for the third quarter fell short of last year's figures. The net profit for the third quarter decreased by 8% year-on-year to SGD 10.73 million.
The third-quarter business report released by Straco Corporation on Thursday (November 27) showed that the group's revenue declined by 13.4% to SGD 27.22 million compared to the same period last year; operating profit also fell by 11.6% to SGD 15.72 million; the net cash generated from operations in the third quarter was SGD 16.35 million, a decrease of 23.7% compared to the same period in 2024.
In the first nine months of this year, the group's net profit dropped by 27.4% to SGD 16.08 million; revenue fell by 11% to SGD 59.90 million; and operating profit decreased by 23.6% to SGD 25.43 million.
The group pointed out that consumer confidence in China remains weak. Although the Shanghai Ocean Aquarium saw growth in revenue and profit in the third quarter, the revenue from the Xiamen Aquarium and Xi'an Cable Car operations declined due to weakened spending by inland Chinese tourists and intensified market competition.
Further Reading
Straco Corporation's net profit plummets 49% in the first half of the year
However, benefiting from the rebound in travel demand during the summer vacation, Straco Corporation expressed cautious optimism about the prospects of the tourism industry.
To celebrate Singapore's 60th anniversary of independence, the Singapore Flyer has launched a new observation wheel experience that reflects Singapore's development trajectory through a "time capsule." The group also plans to introduce more themed activities in the coming months to attract tourists.
Straco Corporation's stock price closed at SGD 0.39 on Friday (28th), up 1.30%
