Tourism Holdings will step up investment in its TH2 joint venture with RV maker Thor Industries, which will stop it from repeating another year of record profits.
This story by Rebecca Howard originally appeared on Scoop Business.
The Auckland, New Zealand-based company reported a record net profit of $62.4 million in the year ended June 30, of which $23.1 million was an accounting gain on setting up the venture with Thor. Earnings before interest and taxation before one-off gains rose 33 percent to $63.5 million on a 25 percent increase in revenue to $425.9 million.
“This is a complex result with the one-off gains, U.S.A. tax changes, the first full year of El Monte and exchange rate movement impacts,” said Grant Webster, CEO of Tourism Holdings.
In February, Tourism Holdings announced it had formed a joint venture with Thor Industries to develop a single platform to connect a wide range of services in the growing market for RVs. The business – which geared toward leveraging digital assets – is headquartered in the U.S., but has teams operating in New Zealand and Australia.
Tourism Holdings will invest around $15 million in the business this year, which will mean net profit will fall from 2018’s record. Still, core business operating earnings before interest and tax will increase. He did not provide more specific guidance.