Travel agent travels well
Shares in Flight Centre, Australia's biggest travel agency, rose 2 per cent to $40.14 on Wednesday after it told the market a strong end to the year had meant pre-tax profit was likely to be at the top end or slightly above previous guidance.
Unaudited figures indicated that Flight Centre would post an underlying pre-tax profit of between $338 million and $342 million for the year to June - a 16 per cent to 18 per cent rise on 2011-12.
Flight Centre said actual pre-tax profit was expected to exceed the underlying number because it was likely to book an extra $6 million from a property portfolio.
The company initially aimed for underlying annual pre-tax profit of $305 million to $315 million in 2012-13, but raised its guidance in May to between $325 million and $340 million.
Managing director Graham Turner said the "positive momentum" had continued in the last two months of the financial year, which would result in all of its businesses across 10 countries recording pre-tax profits for the third year in a row.
Australia, Britain and the US generated about 80 per cent of sales, and strong leisure travel underpinned Flight Centre's performance in Britain.
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Flight Centre said it has raised its full-year earnings guidance for the second time in two months and is on track for another record profit. Unaudited figures showed underlying pre-tax profit of between $338 million and $342 million for the year to June, a 16–18% rise on 2011–12.
Shares in Flight Centre rose 2% to $40.14 on Wednesday after the company told the market a strong end to the year had pushed pre-tax profit to the top end or slightly above previous guidance.
Flight Centre reported an underlying pre-tax profit range of $338M–$342M, but said actual pre-tax profit was likely to exceed that underlying number because it expected to book an extra $6 million from a property portfolio.
The company initially aimed for underlying annual pre-tax profit of $305M–$315M for 2012–13, raised guidance in May to $325M–$340M, and later revised it to an unaudited underlying range of $338M–$342M as the year closed.
Managing director Graham Turner pointed to 'positive momentum' in the last two months of the financial year, which helped all of its businesses across 10 countries record pre-tax profits. The company also noted strong leisure travel, particularly supporting its performance in Britain.
Flight Centre said Australia, Britain and the United States generated about 80% of the company's sales.
According to the company, all of Flight Centre's businesses across 10 countries recorded pre-tax profits for the third year in a row, reflecting broad-based strength across its markets.
Investors should note that Flight Centre has raised guidance twice this year and expects underlying pre-tax profit of roughly $338M–$342M, with a likely additional $6M property gain boosting actual results. Also watch that around 80% of sales come from Australia, Britain and the US and that strong leisure travel helped recent performance.
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