Tourism Holdings is back in black, with operating profits for the year ended June recovering to levels last seen before the global financial crisis.
The company recorded an after-tax profit of $4.3 million, a turnaround from last year's $27.3 million loss. Last year's result included a non-cash goodwill write-down of $26.1 million.
The result was driven by tight control of costs, operational improvements, the first full-year from its US motorhome business Road Bear, and a pick-up in motorhome rental activity during the 2011 Rugby World Cup, chairman Keith Smith said.
Revenue was up from $186 million to $200 million, net debt reduced $3 million to $96 million and a dividend was declared at 2c per share fully imputed.
The broad macro-economic factors for tourism worldwide were still of concern and New Zealand was the operating market most susceptible to the current conditions, Mr Smith said.
New Zealand still held a strong positive reputation internationally. However, that needed to be balanced against the price expectations for the customer when comparing alternative destinations.
The United States was benefiting from a lower currency and also had the promotional power of a marketing campaign which had a significant budget.
The Australian market held some uncertainty with strong competition for both the international and domestic tourist from the US.
The New Zealand rentals business achieved earnings before interest and tax of $5.5 million, up $3.5 million on the previous year, with the Rugby World Cup contributing about $4.5 million.
The company believed the New Zealand rentals market would continue to be flat or declining due to the challenges facing its key customer markets.
During the year, the Wellington branch was closed and a new Queenstown site opened, which had consolidated three sites to create more presence and ensure operational cost savings.
More recently, the closure of the Auckland Central City branch was announced, along with the outsourcing of the company's car business through a third-party supplier to leverage their fleet and facilities.
In the tourism businesses, neither the Waitomo Group nor Kiwi Experience received any discernible increase in custom during the Rugby World Cup.
Revenue fell from $21.9 million to $21.5 million, while earnings before interest and tax were down slightly at $3.8 million from $3.9 million.
