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REPORTING SEASON: Flight Centre (FLT)

Brought to you by CommSec

 

Figure 1: Flight Centre 12 month chart

 

Global travel agent Flight Centre Travel Group Limited (FLT) has lifted its first half profit by almost 21% to a record $110.8 million due to network expansion, enhanced in-store productivity and improved sales in both corporate and leisure markets.

Total Transaction Value (TTV), which FLT uses to measure the price at which its products and services have been sold in conjunction with other revenue, rose 13.5% to $7.48 billion.

Audited revenue was up 15.1% to a record $1.05 billion.

FLT’s Australian business contributed the most, with a record TTV of $4.3B. Its UK, Singapore and China businesses also posted record sales; while FLT said its New Zealand, South Africa, India and Dubai businesses performed strongly. Severe weather impacted sales in North America and Canada.

FLT said the weaker Aussie dollar in the half did not have an adverse impact, with Australians still choosing to travel.

The company will continue to look for expansion opportunities while aiming to maintain healthy cash reserves.

FLT expects to post a FY profit before tax between $370-385 million assuming stable trading conditions.

A penalty associated with the loss of a court case against the ACCC in December is expected to be factored in to the FY result.

Shareholders will receive a fully franked interim dividend of 55c per share to be paid on April 17.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Juliette Saly, Market Analyst,