Rugby World Cup boost puts Tourism Holdings back in the black

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Tourism Holdings, the largest provider of holiday rental vehicles in New Zealand and Australia, returned to profit in the first half after an increase in sales from the Rugby World Cup and first high season profits from its Road Bear unit in the US.

Profit was $4.2 million in the six months to December, from a loss of $1.3 million a year earlier, the company said. Sales rose 27 per cent to $108 million.

"The Road Bear business has continued to benefit from increased numbers of tourists visiting the USA and a positive tourism exchange rate," said chairman Keith Smith.

"The year-end Road Bear result is expected to be earnings before interest and tax of over $5 million."

Shares in the company closed up 2c at 65c.

Road Bear continued to beat expectations, contributing 20 per cent of the group sales increase over the six months.

At home, the rental market recovered because of the RWC, though the business remains focused on cutting costs and increasing add-on sales revenue.

Tourism Holdings, whose brands include Maui, Britz, Backpacker and Explore More expects profit for the full year to be in range of $5 million to $6 million.

"The tourism businesses in New Zealand continue to be affected negatively by the reductions in visitation from core European and UK markets and from general coach markets declines being experienced throughout the country," Smith said.

"There is some growth from Asian markets, and focus remains on delivering products to attract more of that customer base."

The board has declared a dividend of 2c a share to be paid on March 27.