Tourism Holdings is ratcheting up its focus overseas with the likes of its planned Apollo Tourism & Leisure takeover to counter the uncertainty posed by New Zealand’s ongoing self isolation.
The company today confirmed a net loss of $4.4 million in the six months ended Dec 31, widening from a loss of $1.7m a year earlier, as revenue dropped 15% to $174.9m.
Tourism Holdings said supply chain issues and inflation are becoming an increasing problem, with varying impacts across its NZ, Australia and US businesses.
Chair Rob Campbell said the loss reflected another period when Tourism Holdings was “materially impacted” by the covid-19 pandemic.
“Despite this, Tourism Holdings remains proactive in mitigating the current impact on its business and positioning itself to succeed assuming international tourism returns in a meaningful way,” he said.
Tourism Holdings expects its loss in the six months ending June 30 to be smaller than the $12.7m reported in the same period a year earlier.
A key plank in that plan is the acquisition of ASX-listed Apollo. The Australian company’s board this week backed the deal after independent adviser Grant Thornton said the issuing of one Tourism Holdings share for every 3.68 Apollo shares was a fair and reasonable offer.
“Without a doubt the most significant event in the period was the agreement for the proposed merger of Tourism Holdings and Apollo,” Campbell said.
The Apollo deal beefs up Tourism Holdings’ fleet of rental campervans by 2,700 vehicles and takes the NZ firm into new territories such as Canada at a time when its expectations for the domestic market are curtailed by the ongoing self-isolation requirements of international visitors.
That’s currently under review by the government, but didn’t come soon enough for luxury bus operator, Leopard Coachlines, which called in liquidators last week.
Tourism Holdings chief executive Grant Webster said he’s excited about the firm’s global opportunities with international visitors already in the US and starting to book in Australia, where quarantine-free travel started this week.
“The fact that New Zealand has no certainty on the removal of self-isolation requirements is frustrating but it won’t stop THL investing globally for growth,” Webster said.
Tourism Holdings’ US business was the only division to stay in the black through the December half, reporting a 28% decline in earnings before interest and tax (ebit) to US$7.9m, which was in line with expectations.
The NZ rental division narrowed its ebit loss to $7m from $10.8m, while the Australian arm more than halved its ebit loss to A$900,000.
The shares were unchanged at $2.40 in early trading on the NZX.
