Tourism Holdings raises annual earnings guidance as NZ enjoys bumper visitor numbers
By Paul McBeth
June 21 (BusinessDesk) – Tourism Holdings raised its earnings guidance and says annual profit will probably rise by about 21 percent as New Zealand continues to register record visitor numbers.
The Auckland-based company expects to report net profit of about $29.5 million in the year ending June 30, up from $24.4 million a year earlier, and ahead of earlier guidance for profit to exceed $27 million. The upgrade was due to “recent trading results in New Zealand the USA,” it said in a brief statement.
"The details of the improvement and outlook for the next financial year will be discussed in more detail in late August, when the company looks forward to releasing its audited annual results," chairman Rob Campbell said.
New Zealand has been experiencing record short-term visitor arrivals and tourism has been a key plank the country's economic growth over the past year when weak global dairy prices took the wind out of the rural sector.
Tourism Holdings delivered a 38 percent increase in first-half profit with strong tourist demand in New Zealand and Australia, and has set a goal to achieve annual profit of $50 million by 2020.
The shares last traded at $3.83 and have increased 3.5 percent so far this year, lagging behind the 10 percent gain on the benchmark S&P/NZX 50 index over the same period.