Wellington, Feb 24 NZPA - Tourism Holdings is reporting half year net profit of $1.4 million, compared to a loss of $300,000 a year earlier, as revenue lifted 15 percent to $92m.

Excluding non-recurring items, net profit for the six months to December was $1.7m compared to a loss of $3.6m for the prior period.

All business units in the group returned increased operating earnings, the company said today.

The earnings before interest and tax (ebit) performance from continuing businesses improved from a loss of $4.4m to a profit of $3.1m.

When fleet sales and sales at motor home, campervan and caravan manufacturer Ci Munro were excluded, the rise in revenue was 8 percent.

Revenue from campervan and car rental operations, excluding fleet sales, was up 11 percent, and ebit was up 52 percent at $4.4m.

The improved result also reflected the turnaround of the company's manufacturing business, which was expected to return to profitability in the 2011 financial year, Tourism Holdings said.

The tourism businesses continued to perform, and had shown the benefits of cost reduction programmes implemented during the past two years with ebit of $1.9m, compared to $600,000 a year earlier.

Trading revenues in the rentals business rose 11 percent to $60m, with Rentals Australia up 15 percent and Rentals New Zealand up 4 percent. The number of hire days was down 3 percent.

Vehicle sales revenue increased $7.8m, or 89 percent, with both Australia and New Zealand seeing a general improvement in the market for second hand private leisure vehicles.

Tourism Holdings tourism businesses, including activities around the Waitomo Caves and Kiwi Experience, had a 217 percent rise in ebit to $1.9m. While revenue for the tourism businesses was down 6 percent, costs were down by $2.6m, the company said.

A dividend of 2c per share is to be paid.

Expectations for the second half of the financial year were for a continuing reduction in international visitor demand in line with Australian and New Zealand national tourism forecasts, the company said.

Consequently, the second half performance was not expected to show the same improvement in ebit from a year earlier as the first half did.

Tourism Holdings shares closed at 96c yesterday, having ranged between 40c and $1.05 in the past year.