Tourism operator upbeat

By SIMON HENDERY Tourism writer

Listed tourism operator Tourism Holdings has reported a better-than-expected net profit of $8.7 million for the year to the end of June, up from $255,000 last year.

The company said three weeks ago that it expected to report a $7.5 million result, but it has since benefited from a favourable review of its Australian tax obligations.

Excluding one-off items, the company made a $7.2 million tax-paid profit this year, compared to $2.7 million last year.

Tourism Holdings said its business in the second half of the financial year had been seriously affected by a decline in international tourists travelling to New Zealand and Australia as a result of the Iraq war and the Sars virus.

But whereas the September 11 terror attacks and the collapse of Ansett Airlines the previous year hit the company going into its peak summer season, Sars and the Iraq war did their damage during the quieter winter period.

Group turnover was down 9 per cent to $165.4 million - in part, the company said, because it had sold businesses during the year.

The company said a major contributor to its improved profit was an improved performance from its Australian vehicle rental business, which had increased earnings before interest, tax and amortisation from $2.5 million last year to $6.7 million.

Tourism Holdings will pay a 4c a share final dividend.

That will take its dividend payment for the year to 8c, up from 3c last year.

It said the short-term business outlook remained clouded by the aftermath of Sars, which had badly affected bookings for the September quarter.

The poor ski season in New Zealand had also had a damaging impact on the company's coaching and rentals businesses.

"However there are indications from airlines increasing capacity into Australia and New Zealand and our current forward bookings, that the summer season appears to have recovered to previous years' levels."