Tourism Holdings to report smaller loss

THL's Kiwi Experience is starting to take bookings for its bus tours. Photo / NZME

Campervan rental business Tourism Holdings says it expects to report a smaller loss in the year ending June than had been predicted by some analysts.

The company said its statutory net loss for the 2022 financial year will likely be between $2 million and $4m, while the underlying net loss will be in the range of $4.7m to $6.7m.

A number of one-off items account for the $2m difference in the two numbers, including a $6.2m gain on the sales of Mighway, ShareACamper and Roadpass Digital.

It also includes $5.1m of expected transaction costs related to the proposed merger with Apollo Tourism & Leisure, which is yet to get regulatory approval.

The NZ regulator is expected to make a decision by June 30 and the Australian one by July 21. Both have expressed concern over the level of market control the combined entity would have.

Tourism Holdings' forecast loss is smaller than analysts had expected earlier this year as the three big broking firms had each forecast a net loss of between $11m and $13m.

The company said it was seeing a recovery in international demand for RV travel in all countries where it operates.

"This is evident in the strong number of international bookings in the United States for the upcoming 2022 summer period," it said in an update.

"In New Zealand and Australia, there have been good early indicators for demand out of Europe, although primarily for travel from October 2022 onwards".

The significant improvement on earlier earnings expectations comes from Australia, it said, which has seen average yields climb above pre-covid levels.

Tourism Holdings flagged that supply chain challenges were still delaying vehicle deliveries and increasing some costs, which it expects to continue into 2023.

Its managed tours business, Kiwi Experience, is beginning to take bookings for the summer and expects small group tours to resume from July 2022.

However, Tourism Holdings has asked KPMG to shop the division around to potential buyers as the company asks whether it "may be better suited under different ownership as it emerges from hibernation".

Shares in the company rose 1.4 per cent to $2.81 at market open this morning.