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Tourism Holdings warns of hit to full year earnings

Campervan operator Tourism Holdings says reiterated that its full year underlying profit will be at the lower end of analysts' expectations of $27 million to $34.4m. Photo: Campervan operator and takeover target Tourism Holdings is warning of a hit to full year earnings from weaker vehicle sales, pressured bookings, and a possible writedown of an asset value. The company repeated for the second time in two months that its full year underlying profit will be at the lower end of investment analysts' expectations of $27 million to $34.4m. It made a similar warning in April when the consensus of forecasts was $45.2m. "The result for FY25 reflects continued near-term earnings pressure from the challenges impacting global RV (recreational vehicle) sales and, to a lesser extent, the USA market," the company said in a statement to the NZX. "Manufacturing divisions in Australia and New Zealand will also experience a year-on-year earnings decline, as manufacturing volumes decrease following the actions taken to right-size production and total inventory." Tourism Holdings reported a profit of $39.4m in the previous financial year. It said it was also looking at whether to make a write down in the value of assets, the principal item being goodwill of $36m associated with its US business. Goodwill is the value attached to intangible items such as brand value and software. "Given the uncertain outlook for international travel to the USA, THL expects that a goodwill impairment may be required," adding it was looking at other possible one-off items which would affect the bottom line. However, it said the start of the new financial year showed a double digit improvement in bookings in New Zealand and Australia, and single figures in the US. Last month Tourism Holdings said it had received an indicative takeover offer from a consortium comprising Australian private equity firm BGH Capital and the former owners of an Australian tourism business bought by THL. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.