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Highlights
- The NZ Government has announced to re-open Auckland’s border from mid-December.
- Tourism Holdings has disclosed that the agreement to sell its peer-to-peer businesses would become conditional once Camplify obtains clearance on the proposed acquisition from Commerce Commission.
- Serko has released its half-year results, reporting significant growth in its operating revenue, and going for an equity raise.
Auckland’s border restrictions are set to be lifted from 15 December, allowing fully vaccinated Kiwis and those carrying negative COVID-19 test results to travel to and from the city.
As a result, travel companies are experiencing a rise in their domestic travel bookings as people are looking forward to meeting their family and friends.
However, many local leaders specially from Maori communities are wary of this border re-opening as they fear the spread of the deadly virus to other parts of the country from Auckland, which has been the epicentre of virus infections.
Also, with many far-flung areas having limited access to health facilities and ICU beds, people residing in these areas are hoping that potential visitors should delay their travel plans by one more year so as to limit the spread of the virus.
With this backdrop, let us look at the four NZX travel stocks.
Image source: © 2021 Kalkine Media, data source- EODHD/Others
Tourism Holdings Limited (NZX:THL)
Tourism Holdings Limited has recently made an announcement to sell Mighway and ShareACamper to Camplify Holdings Limited. THL has notified that Camplify would seek approval from Commerce Commission for clearance w.r.t. the proposed acquisition.
It is noted that the purchase price has been fixed at AUD$7.37 million.
On 25 November, at the time of writing, Tourism Holdings up by 1.06% at NZ$2.860.
Related Read: Would NZX tourism stocks feel Auckland border curbs’ effects?
Air New Zealand Limited (NZX:AIR; ASX:AIZ)
Air New Zealand Limited has recently unveiled its 2021 Annual Databook, highlighting its competitive advantages, sustainability efforts, network, performance, etc.
Do Read: Air NZ (NZX:AIR): What were the highlights of recently held ASM?
As the NZ Government prepares for the re-opening of the country's borders next year, Air NZ is focusing on strengthening its core operations, building its digital capability as well as enhancing its loyalty programme so that it is in a better position when there is an influx of tourists in 2022.
On 25 November, at the time of writing, Air New Zealand was trading flat at NZ$1.595.
Serko Limited (NZX:SKO; ASX:SKO)
The tech company that focuses on corporate travel and expense management is Serko Limited. Recently, the Company has revealed going for an equity raise of up to NZ$85 million so as to strengthen its global growth strategy.
Must Read: Which are 5 NZX technology stocks with healthy 6-month returns?
Also, it has released its half-year financial results ended 30 September 2021, reporting an 81% growth in its operating revenue, amounting to NZ$9.2 million, owing to limited lockdowns in the initial part of the year clubbed with contribution from Booking.com for business.
Further, its cash position stood at NZ$62.3 million towards the end of the said period, reflecting prudent cash management amid uncertainties.
SKO expects full-year revenue in the range of NZ$21 million and NZ$25 million.
On 25 November, at the time of writing, Serko was trading low by 11.85% at NZ$6.920.
Auckland International Airport Limited (NZX:AIA; ASX:AIA)
Auckland International Airport Limited has recently provided its traffic update for September 2021.
Due to Auckland being at alert level 4 for a major part of September, its total passenger volumes fell by 92.2% in the month when compared to pcp.
Related Read: Why should 5 tourism stocks worry about 2022, not 2021?
Further, even in October 2021, its total passenger volumes declined by 92.5%, with hardly any change from previous month, even when the city was at alert level 3 throughout the said month.
On 25 November, at the time of writing, Auckland International Airport was trading low by 0.75% NZ$7.94.
Bottom Line
While the re-opening of Auckland borders has been greeted with relief and celebration by many Aucklanders, many New Zealanders are still hesitant to make travel plans for they fear that it would lead to an influx of COVID-19 infections.