| Mon 25 Feb 2008, 11:43 | | TRT - Tourism Investment Corporation - Solid Performance Boosts Tourvest Profit |
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TRT
TRT
TRT - Tourism Investment Corporation - Solid Performance Boosts Tourvest Profit
TOURISM INVESTMENT CORPORATION LIMITED
Registration number 1996/008144/06
Share code TRT
ISIN code ZAE000012472
SOLID PERFORMANCE BOOSTS TOURVEST PROFIT
Johannesburg, 25 February 2008 - A solid performance by most of its operations
boosted Tourvest`s operating income by 20% to R119 million for the six months to
December. Revenue rose by the same margin to R951 million.
With the interest charge going up from R3.8 million to R14.4 million as a result
of increased borrowings to fund recent acquisitions, as well as higher interest
rates, income attributable to ordinary shareholders rose by 5% to R52.5 million.
Earnings per share were 6% higher at 6.8 cents.
Chief executive Tommy Edmond said Tourvest Retail Travel, American Express
Foreign Exchange, the Victoria Falls activities hub and the Namibian tour
operator had performed exceptionally well. The tourist jewellery business had
also done well but the local jewellery operations had been negatively affected
by higher interest rates and the introduction of the National Credit Act. The
duty-free business had traded strongly on African routes but had disappointed on
the Virgin Atlantic contract; remedial measures are producing the required
improvement.
Among the acquisitions, the expansion into East Africa had benefited the group`s
inbound tourism business but the hotel and restaurant operations were not yet
performing in line with expectations. Occupation rates for the properties were
now rising, however, and with costs under strict control, the restaurant
business was expected to improve in the second half of the year.
"The volatility of the rand makes it difficult to predict the volume and
spending patterns of overseas visitors, and consequently to give a forecast for
the group`s performance. At the present exchange rate of approximately R7.80 to
the US dollar, trading should improve in the second half of the year," Edmond
said.
"The current political upheaval in Kenya is having a serious impact on our East
African operations and the losses they are likely to suffer in the second half
of the year will wipe out their good performance of the tour operator business
in the first. We`ve already retrenched staff and reduced salaries there. These
businesses contributed 9% to the operating income to December 2007."
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 Bank
Date: 25/02/2008 11:43:06 Produced by the JSE SENS Department.
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