Tourism Holdings forecasts bigger loss
Tourism Holdings expects its net loss to be greater than the average of market expectations — $12.8 million for the June 2021 year — due to lowerthan-expected domestic travel activity.
THL outlined a strategic plan for the year at its annual meeting on October 30 and said yesterday the business had been successfully executing to that plan. But the past two months trading indicated domestic demand through January and March would be lower than initially anticipated.
“The loss for 2021 is expected to be greater than the average of the results projected by market analysts,” the company said. The average of broker expectations was for a loss of $12.8 million for the year. Shares in THL dropped by 14c, or 5.5 per cent, to $2.40 but recovered to $2.52.
THL said its focus on balance sheet management had been successful.
Expectations for year-end debt and capital expenditure remained in line with the guidance provided at the annual meeting, which was for capex of $100 -$130m and net debt of $100m.
THL said based on trading in November and early December, domestic demand for travel in the late January to March period was now expected to be lower than originally anticipated.
In Australia, there had been a positive level of rental activity in the short time that state Covid-19 border restrictions have been fully lifted.
“This provides confidence the Australian business will be able to operate profitably in the domestic market, assuming there are no domestic travel restrictions in place.”
THL’s net profit came to $27.4m in the June 2020 year.