Prof it slump to $29m for Tourism Holdings

Tourism Holdings has announced a 52 per cent fall in after-tax profits to $29.8 million from the previous year, and embraced a sustainable theme called ‘‘Future-fit Business’’.

Chairman Rob Campbell said last year’s profit included a oneoff gain of $23m.

While the directors were not satisfied with the results they were still ‘‘very confident’’ in the future of the business and its competitive position.

The report highlighted comments from climate change experts about record temperatures and Campbell said it was why Tourism Holdings was prepared to act more aggressively at the risk of being accused of ‘‘greenwashing’’, or using it as an excuse not to pay dividends when profits drop.

One of the main reasons for the profit fall was declining sales of rental vehicles – 34 per cent down in the US, and 15 per cent down in Australia, offset by 8 per cent higher sales in New Zealand, although short of targets especially for minivan sales.

Vehicle sales was the key issue. Total sales for the year were down 515 on the 2408 sold in 2018. The situation was different in the separate markets.

Overall revenue from all divisions was down 1 per cent to $423m for the year ending June 2019.

Income from the company’s Waitomo business fell to $41.4m from $41.8m last year as growth in visitor numbers slowed in the tourism market generally.

The Kiwi Experience backpacker division saw significant falls in backpacker arrivals from Europe year, prompting cost reductions and marketing initiatives to promote new product lines.

Tourism Holdings paid a final dividend of 14 cents a shares bringing the full year dividend to 27 cents a share, the same as 2018.