NZ Experience slashes 1H profit guidance in half

Wednesday 8th February 2012

New Zealand Experience expects its first-half net profit to come in about $750,000, well below its previous guidance of between $1.4 million and $1.6 million and below the $1.01 million it reported for its previous first half.

The Rainbow's End theme park owner and operator said visitors to the park in Auckland's Manukau totalled 154,500 in the six months ended Dec. 31, well below the 168,000 visitors in the same six months a year earlier.

“This decline was primarily experienced in the month of December alone which is usually a peak trading month,” the company said.

Adverse weather conditions were the main problem although the Rugby World Cup also “diverted customer expenditure choices including a related reduction in pre-Christmas private function activity at Rainbow's End in comparison to the strong function-related visitor numbers achieved in December 2010,” it said.

Revenue per visitor rose as a result of increased site offerings and higher admission prices.

“While these factors maintained total revenue at a consistent level year-on-year, the full recovery of planned increases in our cost base was inhibited by the fall in visitor numbers,” it said.

Continued higher spend per customer, additional function activity and other initiatives, together with “a less disruptive weather pattern,” mean it should be able to recover some of the shortfall in profitability suffered in the first half, it said.

The company will report its actual results for the six months ended Dec. 31 on Feb. 23.

New Zealand Experience shares haven't traded today and closed yesterday at 40 cents, down from their October peak at 45 cents but up from as low as 31 cents last May.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

No comments yet