KEY POINTS:
Tourism Holdings posted a jump in half-year profit yesterday but uncertainty over bookings saw the NZX-listed operator stick to its full-year forecast.
Net profit for the six months ending December 31 was $4.7 million, up from $4.2 million the previous year, on the back of revenue of $90.5
million, up from $80.6 million.
Tourism Holdings - which owns coaches, rents vehicles and operates attractions including Kelly Tarlton's and Waitomo Glow-worm Caves - said continued improvement was expected in the second half with the strength in visitor numbers to New Zealand and Australia.
However, the company reaffirmed its full-year net profit forecast of between $15 million and $18 million, compared with about $15 million the previous year (excluding the impairment write down of Kelly Tarlton's).
Indications were for a quieter fourth quarter although a trend towards last-minute bookings made forecasting less reliable.
Chief executive Trevor Hall said the January to March quarter appeared good but he was still watching the final quarter with interest.
"The order book for the fourth quarter, we want that to firm up a bit before we can go a bit stronger on that forecast," Hall said.
Tourism Holdings shares closed up 1c at $2.11.
First NZ Capital analyst Jason Familton said it was a solid result and the reaffirmed full-year forecast would reassure the market.
"Obviously the restructuring is beginning to work and I think some of the measures they've taken to in particular increase yield in the rentals business are bearing fruit now as well," Familton said.
The rentals division had performed well, particularly in Australia, generated earnings before interest and tax up 6 per cent at $12.4 million, with turnover up 15 per cent at $58 million.
Australian fleet utilisation, hire days, insurance and add-on sales had all increased.
The leisure group division increased earnings before interest and tax to $500,000, as against a break-even position last year, on the back of a 6 per cent growth in revenue to $36 million.
Chief executive Hall said most profits in the leisure business were traditionally generated in the second half of the year.
One reason for investing in Australia had been to flatten the company's revenue profile.
The value of the New Zealand dollar had bounced back since the full-year forecast was originally set last year, impacting on the discretionary spending of visitors, but Hall did not foresee any significant risks.
"As I like to say, tourism's a long-term industry and we'll always see macro impacts in the sector, but we don't see too much wrong at the moment looking forward," he said.