Tourism Holdings Limited reduces earnings guidance for the fiscal year 2024. for the year, the company expects net profit after tax to be between $50 Million and $53 Million. This compares to earlier guidance set in February 2024 for NPAT to be around $75 Million.

The weakening economy has impacted most regions and business divisions negatively and lowered expectations into fourth quarter. Vehicle sales have been a major factor globally, with sales volumes and margins now declining more quickly than expected in most markets. Over 50% of the overall group EBIT decline is attributable to the Australian Retail Dealership division and in particular, a shortfall in the sales volumes of high-margin ex-fleet vehicles.

Rental yields have generally met expectations in most markets, however a recent slowdown in forward booking intakes for the Australasian shoulder season will lead to a poorer rental performance than earlier forecasts in the remainder of year 2024.