Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tourism Holdings shares fall on earnings guidance cut

Tourism Holdings shares fall on earnings guidance cut, weak Australian market

By Paul McBeth

Feb. 28 (BusinessDesk) - Tourism Holdings, which merged its campervan rental business with two rivals last year, cut its annual earnings guidance on a deteriorating Australian market after posting a small first-half loss as expected. The shares fell 1.5 percent.

The Auckland-based company made a loss of $500,000, or 0.4 cents per share, in the six months ended Dec. 31, from a profit of $4.2 million, or 4.2 cents, a year earlier, it said in a statement. That was at the top end of its November forecast, and earnings before interest and tax of $5.3 million beat First NZ Capital's expectation for $4.6 million. Sales rose 8 percent to $108.5 million.

Tourism Holdings cut its forecast annual profit, excluding costs from the merger with Kea and United, to between $3 million and $4 million from an expected $6.7 million, and $4.3 million in 2012. Forecast ebit was lowered to a range of $14 million to $16 million from previous guidance of $19.3 million.

"The strong and sustained rise of the Australian dollar against the currencies of core inbound tourism markets is entrenching perceptions that Australia is an expensive destination," chief executive Grant Webster said. "We are taking steps to put in place a cost structure that reflects these weak demand conditions, but we expect the business to underperform our previous forecasts."

Last year's merger was forecast to lift Tourism Holding's annual revenue to $241.3 million in 2014 from this year's $200 million, with profit rising to $14.8 million from this year's $4.5 million.

The shares fell 1 cent to 67 cents, the lowest level since Jan. 7. The stock is rated an average 'outperform' based on three analyst recommendations compiled by Reuters, with a median target price of 66 cents.

The board declared an interim dividend of 2 cents per share, with a record date of March 15, payable on March 22.

Tourism Holdings New Zealand rentals revenue fell 20 percent to $20.2 million in the period from a year earlier, and posted an ebit loss of $2.2 million from a profit of $2.9 million in 2011.

Australian rental revenue increased 1 percent to $37.4 million with ebit unchanged at $3.4 million, while US rental revenue rose 1 percent to $11.4 million and ebit gained 5 percent to $6.4 million.

The tourism business, which includes the Waitomo Caves attraction, showed a 3 percent fall in sales to $8.9 million, and ebit increased 14 percent to $800,000.

The company said Australian returns were squeezed due to heavy discounting, which is expected to continue, and it will look to strip out $3 million in annual costs.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news