Flight Centre six monthly pre-tax profit up 18% to $119.7 million.
Flight Centre has just released its figures for the six months to 31 Dec, with a record figure for both profits and sales.
Pre-tax profit was $119.7 million, up 18% on the $101.1 million figure for the previous corresponding period, while TTV increased 9% to $6.2 billion for the half.
Sales staff numbers grew 8% to 11,866 while shop numbers increased 6% to 2313, the company confirmed.
A fully franked $0.41 per share interim dividend was declared,with md Graham Turner saying nine of Flight Centre’s ten regions turned a profit and that the strongest growth came from Australia, the UK and Dubai, as well as its corporate travel businesses in Canada and the USA.
“Growth of this magnitude is a sound achievement for a company of our size and given the economic uncertainty in some regions,” Turner said.
He said the period had coincided with significant investment in the company’s core business, including global sales network expansion and the “successful stage one rollout of the new Universal Desktop for our sales consultants in Australia, New Zealand and South Africa”.
As well as the increasing number of Flight Centre shops, the company also grew online with Australian brands such as flightcentre.com.au and travelthere.com recording a 26% increase in TTV, with more international airfares made available online and the introduction of enhanced hotel and cruise booking engines.
Turner said that growth slowed in Australia during the second quarter before rebounding in January, and pre-tax profit for the first seven months of 2011/12 is about 22% higher than the previous corresponding period.
“In light of our position after seven months’ trading, we believe it is appropriate to increase our full year profit target,” he added, with the company targeting a profit before tax of between $270m and $290m.
Turner added that the voluntary administration of Air Australia last Fri is expected to cost the company up to $1 million.
In the current period further growth plans will see the company launch quickbeds.com and Travel Associates in New Zealand as well as open its first Flight Centre shop in Hong Kong and launch the popular Travel Expo program in the USA.
Flight Centre will also open its first Australian “hyperstore” in Perth, with the store to house Flight Centre, Travel Money Oz and corporate sales teams.
And on the corporate front, FCm Travel Solutions has been launched in Canada, to operate alongside the SME-focused Corporate Traveller brand.
More information in today’s Travel Daily.
