One of New Zealand’s largest tourism firms has significantly revised its net loss forecast.
In an update to the NZX yesterday, Tourism Holdings Ltd (THL) improved its outlook and said it expected its 2021 financial year (FY21) net loss would be between $14million and $18million, down from the loss projected by market analysts of about $21.5million.
The company, which rents and sells campervans in New Zealand, Australia and the United States said its US business remained strong.
It had met its target average vehicle sales margins in the US in recent months, although some of this margin growth was considered one-off in nature, reflecting the market conditions at present.
It was also positive about its rentals, expecting the upcoming US summer to be similar to or busier than the previous one.
Back home, following the completion of the Great New Zealand Motorhome Sale campaign late last year, sales margins had recovered to previous levels and in some cases exceeded them.
However, the New Zealand rental business would continue to be loss-making under a domestic-only environment.
"We have experienced an increase in web search activity in connection with the reopening of transtasman travel, with search activity is highest for school holiday and Queenstown," the company said.
Vehicle sales volumes in Australia had remained stable.
An extended period of state borders remaining open, other than one lockdown in Brisbane, had accommodated for growth in domestic rental demand.
Yields in Australia were now at levels consistent with pre-Covid-19 norms, the firm said.
Beyond FY21, it expected to be well-prepared for a range of scenarios.
