- Flight Centre posted net profit after tax $262.93 million, up 13.9%.
- A record total transaction value of $21.8 billion, up 8.5%.
- Revenue of $2.95 billion, up 6.5%.
Travel agent Flight Centre posted a 14.5% increase in net profit after tax to $264.21 million, fuelled by strong international businesses.
The total transaction value was a record $21.8 billion, up 8.5%.
At the close, Flight Centre shares were down 8.1% to $61.68.
The travel agent has been hit with allegations of gouging customers, underpaying of staff, and of harassment and sexually explicit conduct toward female employees.
Managing director Graham Turner says the results highlight the strength of the company’s business model, its ongoing relevance to customers globally and its increasing diversity.
He says international businesses generated 49% of group TTV (total transaction value) during a year of significant disruption and change in Australia.
The Americas and the EMEA (Europe Middle East Africa) businesses together generated a $151 million profit, more than doubling combined results from just two years ago.
“To put these combined results in context, about 40% of FLT’s underlying FY18 PBT (profit before tax) came from the Americas and EMEA, compared to just 15% five years ago,” says Turner.
“This is a promising sign for the future, given the size of these markets — particularly in corporate
travel — and our relatively small market-share.
“While there is still work to be done in the leisure sector, we are also starting to see some positive
signs, with the Canada and US leisure businesses profitable for the first time since FY11 and FY12
respectively and the UK leisure business recording solid profit growth.”
The company declared a fully franked $1.07 final dividend, bringing the total payout to shareholders to of $1.67 a share.
Flight Centre 2018 results compared to previous years:
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