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

 


Tourism Holdings beats 1H guidance on NZ tourist assets

Tourism Holdings beats first-half guidance on NZ tourist assets, flags full-year profit surge

By Suze Metherell

Feb. 26 (BusinessDesk) – Tourism Holdings turned to a profit in the first half, beating its guidance, as improved New Zealand tourism returns made up for a weaker Australian performance. The shares jumped to the highest in more than five years after it said full-year profit would soar 175 percent.

Earnings before interest and tax rose 36 percent to $7.2 million in the six months ended Dec. 31, from $5.3 million a year earlier, the company said in a statement. Net profit was $2.5 million, from a loss of $466,000 a year earlier. Sales climbed 3.5 percent to $112.3 million.

The Auckland-based company, the largest holiday vehicle rental business in New Zealand and Australia, bought kiwi rivals United Campervans and KEA Campers in 2012 to reduce overall fleet numbers and improve margins. In November it gave guidance that first-half earnings would grow 25 percent, as it saw the benefits the merger and a stronger performance in its US market, which generated 88 percent of EBIT in the period.

The shares rose 9.5 percent to $1.15 and earlier touched $1.20, the highest since 2008, as the company said full-year profit would rise to $10.5 million from $3.8 million. Tourism Holdings will pay an interim dividend of 5 cents per share, up from 2 cents a year earlier.

In 2007 shareholders rejected a takeover bid by Australian company MFS Living and Leisure when the shares were at $2.80.

The company’s tourism division, which includes its Kiwi Experience backpacker bus service and Discover Waitomo group, reported a 16 percent gain in first-half sales to $10.3 million as New Zealand benefited from record tourist numbers, while earnings more than doubled to $1.7 million. It expects strong second-half growth for the unit.

Rentals New Zealand was the biggest division by revenue, up 31 percent to $38.4 million, and narrowing its EBIT loss to $2 million from a loss of $2.2 million a year earlier as the company bedded in its merger.

Rentals Australia sales declined 20 percent to $38 million and EBIT dropped 24 percent to $2.6 million, hurt by a high kiwi dollar and challenging market conditions. The company cut costs, reducing funds in the division by 21 percent to $71 million.

“The approach to rectifying the Australian result is working and we remain confident in achieving an appropriate return on capital over the next 18 months,” chief executive Grant Webster said. “All parts of the business have growth planned for the financial year and are performing in line with those plans.”

Rentals USA, which includes the Road Bear campervan business, lifted first-half sales by 12 percent to $25.6 million while EBIT slipped to $6.3 million from $6.4 million.

Fund manager Milford Asset Management has upped its holdings in the company to 19.1 percent. The fund manager became a substantial holder of the stock after buying the bulk of Utilico Investments’ stake.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news