Tourism Holdings Limited reported a modest 2% revenue increase to NZD 937.2 million for the year ending June 2025, yet posted a significant net loss of NZD 25.8 million. Despite the losses, the company declared a final dividend, signaling cautious confidence.
- 2% revenue growth to NZD 937.2 million
- Net loss deepens by 165% to NZD 25.8 million
- Final dividend declared at NZD 0.04 per share
- Net tangible assets per share steady at NZD 1.96
- Full audited financials and investor presentation released
Revenue Growth Amidst Challenges
Tourism Holdings Limited (THL), a key player in New Zealand's tourism and leisure sector, has announced its financial results for the 12 months ending 30 June 2025. The company achieved a 2% increase in revenue, reaching NZD 937.2 million, reflecting resilience in a competitive and often volatile market.
A Sharp Turn in Profitability
Despite the revenue uptick, THL reported a net loss of NZD 25.8 million, a 165% deterioration compared to the previous year. This steep decline in profitability raises questions about underlying cost pressures, operational challenges, or one-off expenses that have yet to be fully detailed. The absence of explicit commentary on these factors in the announcement leaves investors seeking clarity from the accompanying audited financial statements.
Dividend Declaration Signals Confidence
In a move that may surprise some, THL declared a final dividend of NZD 0.04 per share, payable on 3 October 2025. This decision suggests the board retains confidence in the company’s long-term prospects and cash flow stability, despite the current loss. The dividend carries an imputed amount of NZD 0.0156 per share, which may appeal to income-focused investors.
Balance Sheet Stability
Net tangible assets per share remained largely unchanged at NZD 1.96, indicating that the company’s asset base has held steady through the fiscal year. This stability could provide a buffer as THL navigates the challenges reflected in its profit and loss statement.
Looking Ahead
With the full audited financial statements and an investor presentation now available, stakeholders will be keen to dissect the details behind the loss and assess management’s strategy for returning to profitability. The tourism sector remains sensitive to global economic conditions and travel trends, making THL’s next moves critical for its market positioning.
Bottom Line?
Tourism Holdings’ mixed results set the stage for a pivotal year ahead as it balances growth ambitions with profitability pressures.
Questions in the middle?
- What specific factors contributed to the sharp increase in net loss despite revenue growth?
- How sustainable is the declared dividend given the company’s current financial performance?
- What strategic initiatives is THL pursuing to restore profitability in the coming year?