Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Tourism Holdings likely to exceed 2016 guidance

Tourism Holdings likely to exceed 2016 guidance as margins improve

By Sophie Boot

April 29 (BusinessDesk) - Tourism Holdings will likely exceed its 2016 guidance as margins improve in New Zealand and Australia, giving the campervan rental company confidence to predict growth over 2017 and 2018.

The Auckland-based company brought forward it projection for reaching annual profit of $30 million by a year to 2018, and said it would "meet and likely to some extent exceed" its earlier guidance for the year ending June 30, 2016, of $24 million, which would be up from last year's $20.1 million profit.

"The FY16 peak season in Australasia has performed to expectations, with continued positive inbound visitors," Tourism Holdings said. Rentals in New Zealand and Australia were flat on 2015, but growth was driven by improved utilisation and yield lift in both countries, it said.

The company anticipates rental growth and increased yield in 2017, particularly in New Zealand. It expects the British and Irish Lions rugby tour in late June and July that year to have a positive impact on results in the period, though will incur some increased costs to prepare its fleet.

Tourism Holdings said it can maintain a dividend payout ratio "at the higher end" of its policy, which is between 75 and 95 percent of net profit. In 2015, its payout ratio on net profit was 85 percent, and it said given its current capital expenditure program it expects to pay out about 90 percent in 2016.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The company's peer-to-peer motorhome rentals division, Mighway, has met initial expectations, and the company is increasing its investment to scale it in New Zealand and explore international expansion.

It's also increasing its 'flex-fleet', which is short-term inventory it sells after the peak season, to offset the reduction of its core fleet.

"The business model for THL is changing to being more flexible and customer focused," the company said. "There is a very significant amount of internal change which is being managed carefully as we grow."

The shares last traded at $2.63, and have gained 20 percent this year.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.