TOURISM facilities operator Straco Corporation is expected to report a substantial net profit for its 2023 financial year.
The company, which operates the Singapore Flyer, provided a profit guidance via a bourse filing on Friday (Feb 9), noting that it has experienced an overall improvement in business operations compared with the net loss it reported for FY2022.
This is from an increase in revenue from the company’s China attractions in FY2023 as visitor numbers went up as Covid-19 restrictions eased after December 2022.
Domestic tourism in China also recovered strongly and is increasing towards pre-Covid levels. In comparison, prolonged closures and intermittent lockdowns arising from the zero-Covid policy in FY2022 severely affected visitor numbers and normal operations.
There is also an increase in revenue from the Singapore Flyer, arising from higher visitor numbers as international tourist arrivals recovered strongly and ride operations gradually resumed to its normal operating hours. In contrast, ride operations were suspended for three months due to a technical issue in FY2022.
Straco added that there were also lower exchange losses recorded in FY2023 compared with exchange losses of S$5.37 million recorded in FY2022.
Shares of Straco fell 2.1 per cent or S$0.01 to close at S$0.465 on Friday.
