Tourism Holdings reaps rewards from US business with doubling of profit

Thursday, 22 February 2018

THL's Waitomo tourist operation has seen strong growth from Asia and UK markets.

Tourism Holdings Ltd more than doubled it's half yearly net profit thanks in part to US expansion and tax benefits.

Net profit was up 102 per cent to $22.8m on revenue of $209m in the company's financial result to December, and it wil pay a dividend of 13 cents a share.

Chief executive Grant Webster said the result included $9.5m in gross earnings from El Monte, the American-based motorhome rental and sales business it bought early last year.

It also reflected the impact of changes in US Federal tax rates which came into effect during the reporting period.

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Webster said there had been strong growth in the Australian and New Zealand rental markets, with the Lions Tour assisting in that.

Mighway, a peer-to-peer rental vehicle service, had also grown with more than 700 New Zealand motorhome owners using the platform.

Tourism results were mixed.

The Waitomo Caves operation performed well, particularly with the Chinese, Korean and UK visitor markets.

But Kiwi Experience results were below expectations following a drop in backpackers from the UK and Europe.

THL is forecasting a full year net profit of $55m to $59m, and Webster said a new joint venture enhanced their prospects of meeting that goal.

The JV with Thor Industries, a leading global recreational vehicle manufacturer, is due to be finalised at the end of the month.

It will create a digital platform for RV owners which will include trip planning and booking, roadside assistance, and RV and campsite rental.