Apollo sees bushfire fallout on the horizon for bottom line

Apollo sees bushfire fallout on the horizon for bottom line

Motorhome company Apollo Tourism & Leisure (ASX: ATL) faces a slowdown on two fronts as bushfires take their toll on domestic customer numbers and forward bookings from overseas.

In a trading update today, the Brisbane-based group announced it would be challenging to reach the underlying FY19 net profit of $14.7 million again in FY20.

"Domestic last-minute bookings over the peak summer holiday period have been impacted by the bushfires. The global media reporting of the Australian bushfires will also impact forward bookings," Apollo said.

"As we monitor the bushfire situation our immediate thoughts are with the communities and families affected by these events."

The company also highlighted subdued - albeit improving - global RV sales markets as likely to affect results as well.

A further update will be made in Apollo's half-year results on 25 February, and investors don't appear to optimistic with ATL shares dropping 16 per cent to $0.36 in early trading today.

From a practical perspective, the fires have been a test of Apollo's technology and systems to cope with natural disasters. Using its telematics solution, the company has established geo-fencing around affected regions which are updated as the situation evolves.

"Guest safety is paramount and our operational focus in recent weeks has been on ensuring our valued guests stay safe and continue to enjoy their Australian RV holiday adventure in areas unaffected by the fires," the company says.

"We are attempting to contact any guest entering a geofenced area to ensure they are safe and are aware of the current situation. Information is also being made available to our guests on vehicle collection.

"This includes government websites to consult for planned travel routes along with recommendations to follow the advice of local authorities and listen to local radio stations for regular updates.".

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Employee resilience is key to business resilience
Partner Content
Employee mental health and wellbeing is top of mind for Australian businesses, and or...
Aon
Advertisement

Related Stories

Lorna Jane slapped with $5 million fine over false 'anti-virus activewear' claims

Lorna Jane slapped with $5 million fine over false 'anti-virus activewear' claims

Sportswear brand Lorna Jane has been ordered to dish out $5 milli...

Myer secures lease on new Victorian distribution centre

Myer secures lease on new Victorian distribution centre

Department store icon Myer (ASX: MYR) has today announced a ...

Daniel Andrews calls for "ring of steel" around Sydney as Victoria records 14 new cases

Daniel Andrews calls for "ring of steel" around Sydney as Victoria records 14 new cases

After Gladys Berejiklian today declared the COVID-19 situation in...

NSW outbreak a "national emergency" as state records 136 locally acquired cases

NSW outbreak a "national emergency" as state records 136 locally acquired cases

Both NSW premier Gladys Berejiklian and Chief Health Officer Dr K...