PROFIT SOARS FOR DIVERSIFIED TRAVEL GROUP

Written on the 13 July 2012

PROFIT SOARS FOR DIVERSIFIED TRAVEL GROUP

THE Flight Centre (FLT) success story continues with the Brisbane-based travel group today forecasting a record profit.

FLT predicts a $285-290 million profit before tax (PBT) for the 2012 financial year. If realised, the result would represent a record 16-18 per cent jump on the previous fiscal period’s $245.2 million PBT.

Managing director Graham Turner (pictured) credits strong consumer discretionary spending and the travel group’s successful diversification for the positive outlook.

“While the Australian leisure business continues to set records and remains the key contributor to group profits, corporate travel and international operations are now delivering solid overall earnings,” he says in an ASX statement.

“All 10 countries were profitable at earnings before interest and tax level (EBIT) for the second successive year and record profits were achieved in the United Kingdom, the United States, Dubai, Singapore and China in addition to Australia.”

FLT recently enhanced its flightcentre.com.au website as part of its plan to provide airfare booking services 24-hours a day and seven days a week.

“This is being achieved through initiatives like extended shop hours, expanded online offerings, call centres, mobile phone and laptop services and more after-hours sales teams,” says Turner.

During FY13, FLT plans to open its 2500th shop and expand its global workforce by 8-10 per cent with about 1000 new sales consultants to be recruited.

Full-year results will be released on August 28. FLT shares today remained flat at $19.28 per unit.


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