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Tourism Holdings profit down 80%

New Zealand's Tourism Holdings profit tanks

Aug 26, 2009

WELLINGTON - New Zealand tourism operator Tourism Holdings Ltd. reported a 80 percent fall in full year profit on Wednesday as the global recession hit the tourist industry.

The company posted a net profit after tax for the year ended June 30 of NZ$2.9 million ($2 million), compared with NZ$14.3 million the year before.

It said it would not pay a final dividend, after paying 6 cents a share last year.

Tourism Holdings said in February it expected a small net profit for the year, barring no large global shocks to the tourism sector.

It booked a loss of NZ$3.7 million on the sale of its 49 percent stake in bus and ferry operator Intercity Holdings.

The company has also sold out of an aquarium venture, a tour operation in Milford Sound, and slimmed down its campervan building operation.

Shares in Tourism Holdings closed on Tuesday at NZ$0.56, and have fallen around 14 percent so far this year compared to a 13 percent gain in the benchmark top 50 index .NZ50.

The company operates fleets of rental campervans in New Zealand and Australia, tourist bus services, as well as tourism attractions such as the Waitomo glow worm caves.

Tourism Holdings said forward bookings for its rentals were down 9 percent on a year ago, and it plans to increase capital spending on new vehicles in Australia and New Zealand.

New Zealand's Tourism Holdings profit tanks

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