Tourism Holdings expects chunkier full-year result

Tourism Holdings is seeing benefits from Apollo Tourism & Leisure merger. Photo / Supplied

Ahead of its half-year earnings out next week, Tourism Holdings says its merger with Apollo Tourism & Leisure is expected to create a chunkier net profit for its full-year result.

The tourism company told the market it had been assessing expectations for the full year and now expects an “improved” underlying net profit after tax (NPAT) for its full 2023 financial results.

Inclusive of Apollo Tourism & Leisure’s (ATL) net profit for the five months prior to completion of the merger, Tourism Holdings (THL) currently expects underlying NPAT for the full 2023 financial year to be above $75 million.

Excluding ATL’s profit for the period pre-merger, THL expects underlying NPAT for the whole period to be above $48m.

“This guidance also accounts for the reduction of rental revenue resulting from 310 fewer vehicles available for rent,” THL wrote in a statement.

The pro forma guidance includes an underlying profit of $27m attributable to ATL for the five-month period to November 30.

The underlying five-month result also comprises a $9m gain on the sale of 310 motorhomes to Jucy Rentals, also in November.

“The improved guidance reflects the strong trading of the business in the first half and a positive outlook for the remainder of FY23,” the company said.

“More details on the performance drivers will be provided in the half-year results release.”

Several “statutory items” are still being finalised around the merger, primarily relating to its costs, the acquisition of the remaining 51 per cent shareholding in the Just Go rental brand, as well as the sale of the Canadian properties.

The transaction accounting for the acquisition of ATL still hasn’t been completed either and could possibly impact the final net profit result for the company’s full financial year.

“The accounting outcome will not change the cash or economic outcome of THL’s performance,” THL said.

Tourism Holdings will be reporting its earnings for the six months ending December 31 on Thursday, February 23.

The company’s shares were up 1.3 per cent to $3.95 yesterday.