Tourism Holdings Limited (ASX:THL) Updates FY25 Profit Guidance
Updated Financial Guidance
Tourism Holdings Limited (ASX: THL) (thl) expects FY25 underlying net profit after tax (uNPAT) to be at the lower end of the current analyst range of $27.0 million to $34.4 million. This guidance is normalised to exclude one-off items and is subject to year-end procedures. The forecast reflects continued earnings pressure from challenges in global RV sales, particularly in the USA market.
Future Outlook
Looking ahead to FY26, thl plans to begin the year with an opening net debt of approximately $500 million and a rentals forward book showing double-digit growth in rental revenue across all markets except the USA. Forward rental revenue in New Zealand and Australia is approximately 25% higher than last year. In the USA, bookings have recovered closer to typical levels, with a single-digit decline in forward rental revenue beyond the current high season compared to the same time last year.
Asset Impairment Testing
As part of the year-end process, thl is conducting impairment testing on its asset values, including the NZ$36 million goodwill associated with its USA business. Due to the uncertain outlook for international travel to the USA, a goodwill impairment may be required. The impairment testing process is ongoing, and no final decision has been made. Additionally, thl is addressing several other potential one-off non-cash items that may impact statutory net profit after tax in FY25.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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