Campervan firm Tourism Holdings Ltd has downgraded its profit guidance for the full year, blaming "falling Australian revenue" as it posted a $0.5 million loss for the six months to December.
The New Zealand-based company reduced its profit forecast to between $14 and $16 million, down from $19 million, as Australian turnover shrank to $47.3 million for the half year, down from $45.8 million in the previous corresponding period. Both the New Zealand and US rental operations posted growth.
"The Australian market remains tough," a THL statement said. "The strong and sustained rise of the Australian dollar against the currencies of core inbound tourism markets is entrenching perceptions that Australia is an expensive destination."
Meanwhile, it reported "a seamless transition" for its merger of the KEA and United brands into a single entity late last year but admitted earnings improvements had been "insufficient" to offset the $1.4 million cost of the project, along with the $4.5 million contribution to earnings by the Rugby World Cup in the previous corresponding period.
Chairman Keith Smith also highlighted the "significant challenges" facing core inbound tourism markets.
"However, we are satisfied our first half result was on track with expectations for the period," he said. "And as the success of the merger demonstrates, THL is making good progress reconfiguring the business for these conditions."
