RWC pushes Tourism Holdings into profit
The Rugby World Cup, while resulting in uneven economic effects, is credited with Tourism Holdings' return to black in the second half of 2011.
Hot Topic
EARNINGS
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
The Rugby World Cup is credited with returning Tourism Holdings (THL) to profit.
In six-monthly accounts to December 31 posted to the NZX, Tourism Holding posted profit after tax of $4.2 million, a turnaround from the $1.3 million loss incurred in the first half of 2011.
Total operating revenue surged 37% to $108 million, from $85 million in the period prior.
The domestic tourism boost from the Rugby World Cup was not the sole driver of improved performance, with US-based subsidiary Road Bear’s revenue gains making up two-thirds ($11 million) of total revenue increase excluding fleet sales.
Looking ahead, Tourism Holdings expect to post a net profit after tax of between $5 million and $6 million for the full year to June 2012, but warn of rough times ahead.
“The macro trends for the New Zealand and Australia rental businesses remain difficult, with the high exchange rates being of particular concern,” the report says.
Tourism Holdings declined to offer a detailed forecast for the 2012 financial year due to global economic storm clouds. “It is too soon to consider a detailed forecast for the FY 2012 period as a whole, due to the on-going volatility and economic uncertainty in Europe and the United Kingdom.”
While the RWC was generally good for Tourism Holdings, pushing ebita from New Zealand operations up $4.5 million the effect was uneven. “Neither the Kiwi Experience nor Waitomo group as a whole saw any notable benefit from the Rugby World Cup,” the report says.
Matt Nippert
Thu, 23 Feb 2012
Thu, 23 Feb 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Free News Alerts
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
RWC pushes Tourism Holdings into profit
18991