21 Feb 2017

Tourism Holdings reports higher profit

6:20 pm on 21 February 2017

The campervan rental company, Tourism Holdings, has reported a rise in its half-year profit off the back of a strong tourism sector and trans-Tasman growth.

Its profit rose 38 percent to $11.3 million in the six months to December compared with the previous period.

Revenue jumped 9 percent to $146 million.

Campervan on Mount Cook Road with Mount Cook and Lake Pukaki, Mount Cook National Park, UNESCO World Heritage Site, Canterbury, South Island, New Zealand.

An increase in tourist numbers has helped Tourism Holding's profits rise 38 percent. Photo: AFP

The company said its New Zealand businesses were performing well by being exposed to the high number of tourists coming here, while there had been an increase in demand in Australia.

It said the Brexit vote and United States election had created some risk, but there had been no material change in bookings.

In December, the company said it was buying the United States rental business, El Monte.

Tourism Holdings chief executive Grant Webster said it was in the early stages with that business.

"We have learnt that any acquisition needs a clear and simple plan in the first instance and we are working very effectively with the El Monte team to set some new goals and measures that align with how we operate," he said.

Mr Webster said the company had raised its expectations for future profits and was now targeting a full-year profit of $50 million by 2020.

"We have a real enthusiasm across the business to achieve the 2020 goal," he said.

The company had maintained a current full-year profit forecast of $27 million but it was confident it would exceed that.

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