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Tourism Holdings expects to return to profitability this year following two years of losses.
Tourism Holdings reported its second straight annual loss as Covid-19 travel restrictions hurt its campervan business. But the company expects to return to profit this year as travel rebounds.
The company, which rents and sells campervans in New Zealand, Australia and the United States, reported a $2.1 million net loss in the year to the end of June, an improvement on the $14.5m loss the previous year.
Tourism Holdings has faced the biggest single challenge in its history as border closures due to Covid-19 wiped out the international travel market that underpins its business.
Chief executive Grant Webster said the past year had two distinct halves.
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“The first part of the year saw significant impacts from the Covid-19 Delta wave, travel border restrictions lifting later than initially anticipated, and an increasingly challenging global supply chain,” he said. “The industry is just starting to recover, borders have just opened, and customers are travelling.”
Tourism Holdings expects to return to profitability this year as tourism recovers, and said its profit is expected to be within the current range of analyst expectations of $17m to $30.2m.
Still, the company won’t pay a dividend for the past year and said a dividend is unlikely for the coming year.
More to come…
