NZ's Tourism Holdings lowers f'cast, sells assets

WELLINGTON, June 13 (Reuters) - New Zealand tourism operator Tourism Holdings Ltd (THL.NZ) lowered its full-year profit forecast on Friday and said it would sell some assets to pay down debt and concentrate on its core business.

The company said it would sell its businesses in Milford Sound in the South Island, one of New Zealand's premier tourist destinations, and some bus operations for a total of about NZ$26 million ($17.3 million), in response to lower tourist numbers and weaker margins.

"Since March trading conditions across most businesses have worsened in New Zealand due to reduced international arrivals from source markets and lower than anticipated levels of travel booked for the winter period," the company said in a statement.

Tourism Holdings said it now expects a full-year net profit of between NZ$13 million-NZ$14 million, unchanged from last year's result, but down from the February's forecast of NZ$15 million-NZ$17 million.

The company said it would make a one-off gain of around NZ$9 million from the asset sales, of which about half would be booked in the current financial year.

The sale proceeds would be used to pay down debt.

The company said it also expected to book an after-tax loss of NZ$3.8 million for its CI Munro motorhome building operation, because of problems involved with its relocation.

Shares in Tourism Holdings closed on Thursday at NZ$1.68.

In March, the company announced the sale of its Kelly Tarlton Underwater World attraction to Australia's Village Roadshow (VRL.AX) for NZ$13 million.

Tourism Holdings operates campervan rental fleets in New Zealand and Australia, tourist bus and ferry services, and tourism attractions such as the Waitomo glow worm caves.

In February, it said 2008 would be a tough year for New Zealand's tourism industry because of market turmoil and a high currency.

Last July a NZ$277 million takeover bid for Tourism Holdings by Australia's MFS Living and Leisure Group MPY.AX failed after some institutional shareholders resisted the offer. ($1=NZ$1.33) (Reporting by Kazunori Takada; Editing by James Thornhill)