Record TTV and profits for FCTG.
Flight Centre Travel Group has just announced its 2013/14 FY results, revealing its TTV grew 12.6% year-on-year to $16 billion and an underlying pre-tax profit of $376.5 million, surging 9.7% ($33.4 million) – both milestones.
The figures were in sync with preliminary guidance provided by Flight Centre four weeks ago.
Commenting on the operational highlights of the past year, managing director Graham Turner said the group had achieved solid trading results in most countries and had made “significant progress in the strategic transition from travel agent to world class retailer.”
“For the fourth consecutive year, all ten countries were profitable,” Turner said.
“Record TTV was generated in each of these countries in local currency and seven businesses – Australia, the United Kingdom, the United States, New Zealand, South Africa, Singapore and Greater China – delivered record EBIT.”
Turner said the Australian arm of the business “remained the company’s main profit and sales driver”, with growth from both leisure and business travel sectors.
However, Turner emphasised that the growth of TTV “is being adversely impacted by lower yields (cheaper airfares) on some key international routes.”
“The cheap airfares we are seeing are creating exciting travel opportunities for our customers and we will continue to proactively promote the best deals,” he added.
FCTG said in terms of 2014/15 guidance, the group will initially target a pre-tax profit between $395 million – $405 million – an increase of between 5%-8%.
MEANWHILE, Flight Centre Travel Group announced it had agreed to acquire UK-based Topdeck Tours – a business Turner co-founded in London in 1973.
FCTG has agreed to add a 90% holding in Topdeck to its long-standing 67% interest in Back-Roads Touring.
Both Topdeck and Back-Roads Touring will remain as standalone businesses, with the current senior leadership to remain in place.
Further details in today’s issue of Travel Daily.