New Zealand campervan rental company faces challenges in a weakening economy

  • Tourism Holdings reduces FY 2024 net profit guidance
  • Expects net profit of NZ$50-53 million, down from NZ$75 million
  • FY 2025 net profit likely to fall short of proforma outcome
  • Weakening economy impacts regions and business divisions negatively
  • Vehicle sales decline globally, affecting earnings
  • Australian Retail Dealership unit contributes to decline in earnings
  • Forward booking intakes for Australasian shoulder season slow down
  • Tourism Holdings to engage with banking syndicate to amend covenant package

New Zealand-based campervan rental company Tourism Holdings has revised its earnings outlook for FY 2024, lowering its net profit guidance to NZ$50-53 million from the previous estimate of NZ$75 million. The company also anticipates that its net profit for FY 2025 will fall short of the proforma outcome of NZ$77.1 million for FY 2023. The weakening economy has negatively impacted various regions and business divisions, with declining vehicle sales volumes and margins being a major factor globally. The Australian Retail Dealership unit has particularly struggled with a shortfall in sales volumes of high-margin ex-fleet vehicles. Additionally, forward booking intakes for the Australasian shoulder season have slowed down, leading to a poorer rental performance compared to earlier forecasts. In light of these challenges, Tourism Holdings plans to engage with its banking syndicate to seek amendments to its covenant package in order to better reflect current trading conditions.

Factuality Level: 8
Factuality Justification: The article provides specific details about Tourism Holdings’ lowered earnings outlook, the reasons behind it, and the impact on its business divisions. It includes direct quotes from the company’s management and financial figures to support the information presented. There are no obvious signs of bias, sensationalism, or inaccuracies in the reporting.
Noise Level: 3
Noise Justification: The article provides specific details about Tourism Holdings’ lowered earnings outlook, the reasons behind it, and the impact on its business divisions. It includes financial figures and quotes from the company’s management. The article stays on topic and does not contain irrelevant information. However, it lacks in-depth analysis, antifragility considerations, and actionable insights, which prevent it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: The earnings outlook downgrade and write-down on its U.K. and Ireland business may impact Tourism Holdings’ stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to a financial company, Tourism Holdings, and provides information on the company’s lowered earnings outlook and write-down on its U.K. and Ireland business. There is no mention of an extreme event.
Public Companies: Tourism Holdings (N/A)
Key People: David Winning (Author)

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