-
16-04-2020, 09:07 PM
#101
They might as well put their ultra expensive ~ $250m Queenstown development on ice. Its going to be many years before tourism is back to anything like what it was in my opinion. If they stretch themselves too much with massive debt at present they run the very real risk of going broke. This is not a time for bravery in the tourism industry, its a time to batten down the hatches and concentrating on surviving the greatest worldwide recession since the great depression of 1929-late 1930's.
If the directors don't understand this and proceed, good luck to them and the company, they're going to need it. Disc: No stake and no interest in buying one.
Last edited by Beagle; 16-04-2020 at 09:11 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
-
16-04-2020, 09:56 PM
#102
A flood of Auzies on ski packages this year?
-
17-04-2020, 11:14 AM
#103
I think that if they pull the right strings they would get a very sweet debt package. Domestic tourism is about 57% of the market, add in Aussie and a few places like South Korea and we could be back to 2015 numbers. Skyline made a profit every year I could research, they sailed through the GFC (I do not expect them to make a profit this year). Disclosure, just bought some.
-
17-04-2020, 05:39 PM
#104
I think you've underestimated how many Kiwi's will return this year, (I won't be for one). $250m is truckload of debt given the size of their balance sheet. Amazing how that project blew out from initial estimate of $60m just a few years ago ! I can't help wondering what it really costs to complete when its finally built ?
Hope you're not counting on any profit in FY21 either...and good luck, I think you'll need it !
Last edited by Beagle; 17-04-2020 at 05:41 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
-
17-04-2020, 09:06 PM
#105
I don't need luck as I don't own any
-
17-04-2020, 10:03 PM
#106
Originally Posted by Beagle
I think you've underestimated how many Kiwi's will return this year, (I won't be for one). $250m is truckload of debt given the size of their balance sheet. Amazing how that project blew out from initial estimate of $60m just a few years ago ! I can't help wondering what it really costs to complete when its finally built ?
Hope you're not counting on any profit in FY21 either...and good luck, I think you'll need it !
Not as bad as the Auck harbour bridge from the initial $50,000,000 to a now estimated $350,000,000 and they haven't even confirmed on the plans.
-
19-04-2020, 02:32 PM
#107
I was a bit interested in seeing what the segment revenue was, and where they made their money. $71m operating profit 2019.
Thought the Chch Casino would be a bit more profitable, but only about 1/4 of revenue ($60m) and operating profit was only $10m. Hmmmm Not really going to carry them through. Accounts for around 1/3 of their staff. Obviously shutdown now, but not really reliant on tourists so much. Are casion's recession resilient to a degree?
Tourism is about 2/3rd of their incoming (rest is property investment and all other segments). Accounts for the lions share of their operating profit - $57m last year. About 75% of their tourism revenue in NZ, rest off-shore.
Total Equity approx. $430m with no long term debt. Would be a (very) gutsy call to do an expansion in Qtown now - but possibility to save money while construction on a downer and not doing work when busy with tourists.
Some of those assets are very strong assets and effectively irreplaceable, generating good returns ordinarily. But would be a throw in the bottom draw share for the moment. Still even at a price target of say $10, minimum shareholding of 4,000 means $40k.....
-
19-04-2020, 02:56 PM
#108
NZ tourism spending
https://en.wikipedia.org/wiki/Tourism_in_New_Zealand
" International and domestic tourism contributes, in total, NZ$34 billion to New Zealand's economy every year.[2]
Domestic tourist spending of NZ$20.2 billion a year still[when?] exceeds that of international visitors (NZ$11.8 billion).
By far the highest number of New Zealand's tourists (about 45%) come from Australia due to close proximity and relations.(NZ$6.3m)"
-
19-04-2020, 06:29 PM
#109
Originally Posted by kiora
NZ tourism spending
https://en.wikipedia.org/wiki/Tourism_in_New_Zealand
" International and domestic tourism contributes, in total, NZ$34 billion to New Zealand's economy every year.[2]
Domestic tourist spending of NZ$20.2 billion a year still[when?] exceeds that of international visitors (NZ$11.8 billion).
By far the highest number of New Zealand's tourists (about 45%) come from Australia due to close proximity and relations.(NZ$6.3m)"
Tourism industry (and especially the ski industry) would be really keen to get a trans-tasman bubble going. But we need them more than what they need us....
-
27-04-2020, 10:20 AM
#110
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks