What would you say if your company saw its statutory profit before tax (PBT) increase by 11.2 percent to $156.9 million for the first half of the 2015/16 financial year?
Some may cry, some may literally jump for joy, others may be thinking about their bonuses while the rest would be quick to share the news of their success. Over here we’d probably do a Beyonce (we just wouldn’t look as good doing it):
But not Flight Centre’s MD Graham Turner, who took a more modest approach, saying the company “started the year reasonably”.
Perhaps he was keeping his excitement at bay so as to not offend the competition like helloworld, which today also released its financial results with impressive total transaction value (TTV) growth and a slight decrease in overall profit. Click here for more information.
Back to Flight Centre, the group’s TTV increased by $1 billion to $9.18 billion compared to the corresponding six months the prior year.
Revenue jumped by 15.1 percent to around $1.27 billion and net profit after tax sat at around $116.7 million, up from $100.3 million.
Turner said the ‘reasonable’ start to the year came despite tough conditions and investments, including the company’s recent purchase of StudentUniverse.com and share purchases in BYOjet.
“Our financial results… have been encouraging and we have made significant enhancements at an operational level.”
Graham Turner, Flight Centre MD
“These broad-ranging enhancements have been geared towards improving longest term results and, in some cases, have led to a slight slowdown on PBT growth so far this year.
“They have however, delivered a platform for stronger future returns and should lead to longer term benefits.”
All countries across the Flight Centre Group were profitable during the six months except the Americas and India where the company recorded losses.
In Australia, the company’s TTV increased by seven percent, which was underpinned by strong sales in ocean and river cruising; youth touring; complex airfares; corporate accounts; and foreign exchange.
Additionally, Flight Centre noted solid growth in low cost carrier sales after signing agreements with Air Asia X and Tigerair.