| Wed 15 Aug 2007, 12:16 | | TRT - Tourvest - Expanded Tourvest`s earnings soar |
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TRT
TRT
TRT - Tourvest - Expanded Tourvest`s earnings soar in buoyant market
Tourism Investment Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/008144/06)
Share code: TRT
ISIN: ZAE000012472
"Tourvest"
Press Release
EXPANDED TOURVEST`S EARNINGS SOAR IN BUOYANT MARKET
Johannesburg, 15 August 2007 - Following the strategic expansion of its
operations internationally as well as into new South African tourism market
sectors, Tourvest made the most of favourable trading conditions, posting a 28%
increase in attributable earnings for the 12 months to 25 June.
Revenue for the year was up 25% at R1.6 billion, operating income rose by 18% to
R225 million and profit for the period increased from R115 million to R148
million, with earnings per share growing by 25% to 16 cents. An ordinary
dividend of 8 cents per share (2006: 6.4 cent) was declared in line with the
company`s policy of making a distribution equal to half its earnings per share.
Chief executive Tommy Edmond said Tourvest`s retail travel operations had
performed well on the back of a strong domestic market while its inbound
businesses had benefited from a 6% to 7% increase in the number of foreign
visitors and the softening of the rand against the dollar.
Particularly good results were produced by the outbound retail travel business,
which continued to gain market share; the retail merchandising division, where
the Caribbean acquisition contributed to profits in its first year of operation
and the jewellery business grew operating income by more than 130%; and the
American Express foreign exchange business, which increased operating income by
57%. The underperforming outbound tour operation was closed down and the
Shongololo train business has been sold.
"Subject to the exchange rate remaining at around R7 to the dollar, we expect
another good profit increase in the year ahead. The local market is likely to
remain robust while increased international awareness of South Africa ahead of
the 2010 World Cup is stimulating inbound tourism," he said.
Edmond noted that strategies to ensure that Tourvest would extract the maximum
benefit from the World Cup have already been put in place. The group was also
being positioned to take full advantage of the double-digit growth in overseas
tourist numbers which is expected after 2010.
"Tourvest`s performance is subject to two key factors: our retail travel
operation is dependent on the volume of activity in the local market while our
other businesses depend on the amount of money spent in South Africa by overseas
tourists, with our financial services division dependent equally on both
sectors. Tourvest`s strategy has therefore been to grow our South African
businesses while at the same time expanding our investments outside South Africa
to reduce our reliance on a single market," Edmond said.
Last week`s acquisition of the Drifters overland tour business, subject to the
fulfilment of certain conditions precedent, was the latest in a series of
expansion moves. These include the Ganzee chain of souvenir, crafts and curio
shops in the Caribbean, two hotels and a game lodge in South Africa, an inbound
tour operator in East Africa (where Tourvest has obtained the right to build a
lodge in the Serengeti), a corporate travel agent in Nigeria and four seafront
restaurants in the Cape.
"All these businesses need to be grown and all have the potential to add
significantly to the group`s bottom line. This will be a major focus area for
management in the current year, as will the need to maximise synergies and
support within the group, and to continue to grow its established businesses,"
Edmond said.
For further information call
Tommy Edmond, CEO, on 011 728 0540
Issued by du Plessis Associates on behalf of Tourism Investment Corporation.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:
082 330 2034 or e-mail: tourvest@dpapr.com
Website : www.tourvest.co.za
Sponsor: Investec Securities Limited
Date: 15/08/2007 12:16:01 Produced by the JSE SENS Department.
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