Tourism Holdings posts rise in half year net profit

Tourism Holdings Ltd today posted a 15.3 per cent rise in net profit to $4.86 million in the December half year.

It forecast a full year net profit from continuing businesses of $12.5m to $13.5m against $12.5m for 2004. However, losses from Oz Experience, currently being sold, would drag the profit down to $10.5m to $11.5m against $11.2m last year.

Total operating revenue rose 6.6 per cent to $88.2m and earnings per share rose 14 per cent to 4.9c. New Zealand revenue was up 12 per cent and in Australia down 7 per cent primarily due to entering into a third party arrangement for car rentals and the lower volumes from Oz Experience.

THL will pay a fully imputed interim dividend to 5cps, up from 4c, on April 22.

The company said that adjusting for the losses for Oz Experience, which is subject to a conditional sale due to settle in April, the net profit from continuing businesses was $5.9m compared to last year's $5m.

THL said major cost efficiencies were achieved in its rentals division where Ebita (earnings before interest, tax and amortisation) increased 37 per cent to $15.1m on a revenue increase of 6 per cent.

A prior period GST refund helped Rentals Australia Ebita increase 22 per cent to $5.5m.

During the six months THL acquired three businesses -- the Hertz Australia and Cruise NZ motorhome fleets and the Paihia based cruising and coaching businesses of Fullers, Bay of Islands.

It said "two unfortunate accidents" in December to the vessels Excitor and Tiger III had affected December and January earnings for the latter. With the replacement of Tiger III with Tiger V within ten days and the repairing of the Excitor the cruising fleet has recovered.

THL said the tourism industry was stable and the Asian tsunami had not deterred international travellers.

New Zealand operations together with much of the tourism sector were adversely affected by unusually bad weather in December and early January.

Lower trans-tasman air fares had helped New Zealand enjoy strong international visitor arrivals with an increasing influence from Australia which now represents 37 per cent of all international arrivals, increasing at 23 per cent annually.

THL said it was seeing signs of slower growth from traditional northern hemisphere and Japanese markets.

THL shares were down 2c to $2.16 shortly after the result.

- NZPA