Flight Centre has just confirmed its previously flagged full year results, with a $245.2 million “underlying profit before tax” and an overall actual profit of $213.1m before tax, affected by $32.1m in abnormal items including $4.2m in donations and a $27.9m writedown in the goodwill value of its US operations.
The record figure was up 19.6% on the underlying pretax result last year, and saw the company for the first time achieve EBIT profits in all 10 countries in which it operates.
Total Transaction Volume increased 12% to a record $12.2 billion, while gross profit was up 8.1% to $1.7 billion.
Shop and business numbers rose to 2243 globally – of which 49% were located outside of Australia.
MD Graham Turner said that after Australia, the UK was the company’s largest profit generator, while results in South Africa improved and New Zealand “performed solidly, given the tragic events that unfolded in Christchurch”.
He said that 2011/12 had started solidly, with July trading in line with expectations but the volatile conditions mean it’s hard to predict full year outcomes at this stage.
Flight Centre strategies for the year ahead will include fast-tracking growth in corporate travel; improving the desktop tools available to travel consultants; refocusing on localised groupings of shops to reinforce ownership of the business model; more sophisticated enquiry management; an enhanced customer care culture; and “increasing our relevance to suppliers to ensure supplier margins are maintained,” Turner said.
He said that Travelport’s new Universal Desktop product had launched to Flight Centre shops in Queensland this week, after successful pilot programs in Australia, NZ and South Africa.
The company is targeting a 10% growth in shop and business numbers during 2011/12.
Other initiatives include the launch of Flight Centre’s first “fully transactional website” in Australia at www.travelthere.com, with the site’s dynamic packaging engine allowing customers to bundle international flights, hotels, car rental and activities.
More information in today’s Travel Daily.