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Jasons Reports Annual Result

Published: Thu 11 Jun 2009 12:17 PM
For Immediate Release 11 June 2009
Jasons Reports Annual Result
Jasons Travel Media lifted revenues by 2.4% and recorded a 17.9% decrease in profit after tax for the year to 31 March 2009, caused in part by economic conditions and, in part, by costs associated with new activities.
Outlook for the Year Ahead
The company is expecting stable performance in both revenues and profitability in 2010. “Indications from the current level of Forward Contracts are for stable year-on-year revenue for our core products”, said CEO Matthew Mayne. “We have taken a conservative approach to forecasting revenues for peripheral products and local visitor guides. Some uncertainty remains around the short-term prospects for the tourism sector. However, with the benefit of a full year’s contribution from last year’s acquisitions and other new products, we expect to match the 2009 result.
“We are finding that although the market is currently down, we are experiencing increased market share based on many of our customers retaining spend with us given the surety of known performance such as that embodied in the Jasons brand’’ said Mr Mayne.
“The company is also exploring expansion opportunities in the Australian market. Australia continues to be the largest source market for visitors to New Zealand and the most significant destination for New Zealanders”, he added.
“As previously advised, the ‘09 trading result, the second highest in our history, has been affected, in part, by the general economic climate,” said Jasons chairman Geoff Burns. “In particular, we found a reduction in demand for advertising in smaller publications, particularly some local visitor maps and guides, leading to lower than expected revenues. We also launched several new publications in the second half which have not yet reached targeted revenues but they are important investments for our future”.
Total annual revenues for the year of $13.98M were up 2.4% on 2008, EBITDA of $2.12M was 17.9% below last year’s $2.64M, and net after-tax profit was $806k, versus $982k in 2008.
Interest charges for the year were $318k, versus $448k in 2008. Capital expenditure during the year was $487k (2008: $646k). The total expenditure on acquisitions in 2009 was $230k. “As anticipated, our interest charges reduced”, said Mr Burns. “The reduction in capital expenditure was also anticipated, following the completion of the major part of our website upgrade in the 2008 year.”
In addition to launching new tourism related publications in Christchurch, Rotorua and Auckland during the year under review, the company acquired tourism brochure distribution businesses in Rotorua and Northland. The company also launched a number of important new features on its website, Jasons Travel Channel at www.jasons.com. These include activity booking, virtual video capability and the tourism brochure distribution portal Visitorpoint Online, a key initiative in the development of our third party tourism brochure distribution service. The company’s web site continues to experience strong year-on-year traffic growth.
A fully-imputed final dividend of 2.24 cents (net 1.50 cents) will be paid on 31 July 2009. This maintains the annual dividend at prior year levels.
ENDS

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