Border closures slam THL

AUCKLAND-BASED campervan rental company Tourism Holdings Limited (THL) has delivered a net after tax loss of NZ$14.5m for the 12 months to 30 Jun, a significant slide on the NZ$27.4 million profit noted in the previous period.

EBITDA dwindled by NZ$71.3 million to NZ$40.4 million, while revenue also saw a dip of NZ$42 million to NZ$359 million, however tangible assets were maintained at NZ$261.5 million.

The biggest factor driving down profits over the last year has been the fortress state of borders in New Zealand and Australia, with THL’s business model heavily reliant on international visitors.

Despite the challenging conditions created by travel restrictions, the company said its outlook in the long-term looked “positive”, revealing its RV category to be growing globally as it continued to optimise its operational costs.

The company also stated it would continue to invest more in modernising its fleet and improving its revenue share in each of the markets it operates in, which also includes the US.

The report also stated that the Australian market delivered a positive EBIT result despite the many lockdown periods, and that domestic demand in the country looked strong as travel returns over the next year.