Revenue for the six months to December was up 9% to $146million, operating profit before tax rose 29% to $17.7million and after-tax profit gained 38% on a year ago, at $11.3 million.
On the back of the strong result, Tourism Holdings yesterday restated its aim to deliver an after-tax profit of $50million on full-year 2020, and maintained its full-year 2017 profit guidance of $27.5million.
Chairman Rob Campbell said the company had continued to deliver profits, dividend growth and return on funds employed, which included acquisitions announced last December that would provide another "positive leap" for Tourism Holdings.
The December acquisitions included the $91million paid for El Monte Rents Inc, the US’ second largest RV rental business, expansion of the Mighway booking service platform into North America and several transactions with Roadtrippers USA.
Tourism Holdings shares were up slightly at $3.90 following the announcement.
Craigs Investment Partners broker Peter McIntyre said it was a "strong result from Tourism Holdings, again", and both its New Zealand van rentals and tourism ventures were "particularly strong".
The underlying earnings before interest, tax, depreciation and amortisation (ebitda) of rentals were 62% and tourism operations was up 25%.
Mr McIntyre noted earnings before interest and tax were up more than 12% on a year ago and would have been higher, but for "negative currency headwinds", which affected Australian and US operations.
Net debt rose $13million to $103million, and when El Monte’s debt was posted in the second half trading, it was expected to be about $190million-$200million, Mr McIntyre said.
Forsyth Barr broker Damian Foster said the result was characterised by strong profit growth in New Zealand, during the seasonally weaker part of the year, plus some progress in Australia.
"Tourism Holdings is enjoying industry tailwinds in New Zealand and to a lesser extent in Australia," Mr Foster said.Chairman Mr Campbell said the El Monte purchase, launch of a pilot of Mighway and investment in road trip app Roadtrippers USA would "reset the expectations" of Tourism Holdings for the next three years.
"With El Monte we have gained a significant infrastructure base, market share position and experience that ... will deliver superior results," he said.
While reiterating earlier financial guidance of expecting to book a $27million profit for the full year, Mr Campbell was treating that figure as a "minimum deliverable", with results to date supporting his prediction.
