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

 

Weak Aussie demand weighs on Tourism Holdings earnings

Tourism Holdings says annual earnings fell 11 percent to $14.6 million on weak demand in Australia

By Tina Morrison

Aug 29 (BusinessDesk) – Tourism Holdings, which merged its campervan rental business with two rivals last year, posted an annual profit at the lower end of its forecast range as weak demand in Australia weighed on earnings.

Earnings before interest, tax and financing costs fell 11 percent to $14.6 million in the 12 months ended June 30, compared with the company’s forecast of $14 million to $16 million. Sales rose 12 percent to $224.6 million, the Auckland-based company said in a statement.

Tourism Holdings has expanded its business in New Zealand, buying rivals United Campervans and KEA Campers, on the expectation it can reduce overall fleet numbers and improve margins. The company sold 432 units during the year at expected margins and expects its fleet rationalisation to continue in an orderly fashion, it said.

Earnings at the New Zealand unit remained unchanged at $5.5 million in 2013 as the company cut four fleet categories from its campervan operation, merged its two budget brands, outsourced its car rentals business and developed an RV Super Centre in Albany.

“We would expect New Zealand rentals to see double digit growth in hires” the company said. “Longer term, the reduction in industry capacity in the market should underpin earnings growth in the coming years to achieve acceptable returns.”

In Australia, revenue fell 5 percent to $86.8 million and earnings dropped 68 percent to $1.3 million as tight economic conditions in Europe and a higher Australian dollar made the destination unattractive for tourists.

“Australia will remain tough in the coming year,” the company said. “We expect revenue to fall but operating earnings should improve as the fleet is rationalised and we reduce costs.”

In the US, which is the company’s largest campervan market, earnings increased 14 percent to $6.5 million. Tourism Holdings, which expanded to the US in December 2010 when it bought the existing Road Bear business, said the market is showing revenue growth in line with expectations.

Tourism Holdings expects to provide a forecast for the first half of its 2014 financial year at its annual meeting when it has more certainty about high season bookings.

Net profit fell 12 percent to $3.8 million in the 2013 year. The company said net profit is not directly comparable as the latest year includes $4.5 million of earnings from KEA and United and $1.4 million of merger costs, while the year earlier included a one-time $4.5 million earnings benefit from the Rugby World Cup.

The company will pay a final dividend of 2 cents a share on Oct. 24, taking the total to 4 cents, unchanged from the year earlier.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Grey Power: Is Disappointed To Learn Of More Bank Closures

Many older people are being left without essential services because of cost cutting and the march of modern technology. It is now expected that most banking transactions can occur via the internet or telephone. Jan Pentecost, President of the Grey Power ... More>>

ALSO:

Economy: Supply Chain On Brink Of Overload Says National Road Carriers

The New Zealand supply chain is on the brink of overload and it looks like the upcoming peak imports season may push it over the edge says National Road Carriers Association (NRC) CEO David Aitken. “Worldwide supply chains are in disarray,” says Mr Aitken. ... More>>

Retail: Supermarkets Announced As Government’s Second Market Study

The Government has today launched a market study to ensure New Zealanders are paying a fair price for groceries. More>>

ALSO:

Statistics New Zealand: Retail Sales Recover In The September 2020 Quarter

Retail sales values recorded the largest September quarter rise since the series began in 1995, Stats NZ said today. Spending on major household items, vehicles, and groceries contributed to the strong 7.4 percent ($1.8 billion) rise in total ... More>>

Kea Aerospace: New Zealand Flies Into The Stratosphere

Development has started on a solar-powered, unmanned aircraft that can fly in the stratosphere continuously for months at a time. The zero-emission aircraft will carry a suite of imagery equipment that will be game-changing for many industries, vastly ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO:


Forest & Bird: Kākāpō Wins Bird Of The Year 2020

The nation has voted and Aotearoa New Zealand has a new Bird of the Year. New Zealand’s moss-colored flightless parrot has climbed to the top-spot for the second time in Forest & Bird’s annual Te Manu Rongonui o Te Tau/Bird of the Year competition. ... More>>