Tourism Holdings reports 25 per cent fall in profit

Tourism Holdings today reported a 25 per cent fall in net profit for the half year ended December.

The company reported a net profit of $4.2 million for the six months, down from $5.5 million for the previous December half.

At its annual general meeting in December the company had forecast a net profit of $5.5 million to $6 million for the period.

Today THL said that guidance had not included a negative $1.5 million adjustment made under International Financial Reporting Standards.

For the full year, the company has reduced its profit forecast to a range of $14.5 million to $15.5 million, from $17 million.

Revenue was down 3.5 per cent at $80.6 million.

THL will pay an interim dividend of 5c per share. Earnings per share fell 25 per cent to 4.2c per share, from 5.6c per share.

International tourism makes up 90 per cent of the company's turnover, but THL said the continued strength of the New Zealand dollar had meant international visitors were spending less time and money in New Zealand.

International tourists are also travelling to New Zealand later in the summer season than usual, with bookings up for February and March, but lower in November and December.

"THL's earnings profile is therefore shifting more to the second six months of the year," the company said.

Rentals New Zealand earnings before interest and tax (ebit) fell 10 per cent to $4.3m, on 6 per cent lower revenue.

Ebit for Rentals Australia rose 16 per cent to $5.8 million on 2 per cent higher revenue, following a change in its business model last year. The company's attractions took a hit, with ebit falling to $500,000 from $2.3 million.

Those most affected were Kelly Tarlton's and Milford Sound Red Boats. Fire and vandalism at the Waitomo Glowworm Cave on December 14 and 28 destroyed the visitor centre, including amenities, restaurant and souvenir retail and office facilities.

They were covered by insurance but it was likely to take 18 months to replace them.

THL's coach operations of Johnston's, Great Sights, Air Bus, Kiwi Experience and Fiji had an ebit loss of $500,000 compared to last year's profit of $400,000.

Shares in THL last traded yesterday at $1.69, having ranged between $1.45 and $2.18 over the past year.

- NZPA