28 Aug 2012

Weak profit for tourist company

6:39 am on 28 August 2012

Shares in Tourism Holdings have risen 1 cent to 59 cents, despite reporting weaker than expected profits.

The caravan and rental operator made $4.3 million in the year to June, compared with a loss of more than $27 million dollars in the previous year when it wrote down goodwill.

In February, Tourism Holdings forecast a full year profit of between $5 million and $6 million.

Chief executive Grant Webster said the economic environment is taking its toll on domestic operations.

"Traditional European/UK customers are still core to us," he said. "The exchange rates mean we need to be more price-competitive and more conscious of price".

Total revenue across its businesses in New Zealand, Australian and the United States rose 8% to $200 million.

The company will pay a dividend of two cents per share.