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

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news