Mixed results for 2015 first half
Persistently weak consumer confidence was a recurring theme in financial results for the six months to 31 December, although some listed travel companies managed to defy the trend and post record sales – albeit with weaker results than previous forecasts. overall profit result for the six months was $141 million, down 9% on the previous corresponding period despite an 8.8% rise in global TTV for the period to $8.138 billion. MD Graham Turner said the first half of the prior financial year had produced a record due to “superior trading conditions” particularly in the Australian leisure business. The Flight Centre profit figure was also impacted by ongoing investment in the business, which included a number of new hyperstores opening in Los Angeles, Philadelphia, Delhi, Mumbai, Darwin and Abu Dhabi. put a brave face on its result, which saw drops in TTV (down 9% to $2.3b), revenue (down 8% to $139m) and “Adjusted EBITDAI” which fell 44% to $10.6 million. The company’s result for the half was a $200,000 loss – a significant improvement on the $3.9 million loss for the first half of 2013/14. Helloworld highlighted a 1% increase in TTV on a “like for like basis” in its retail network, saying this was an achievement in the subdued trading environment. The company also recorded declining TTV in its wholesale operations, with the overall profit result affected by the company’s heavy program of consumer marketing, costs associated with establishing the helloworld.com.au OTA operation and, interestingly, “improved agent incentive payments”. which has enjoyed a strong rise in its share price in recent months, declared a “stellar result” which saw TTV surge 22% to $620 million during the half. Pre-tax earnings were up 7% to $12.1 million, and CEO John Gucsic confirmed the company had seen record TTV every month during the half. reported strong results from its ongoing transformation program. An after-tax profit of $206 million was the carrier’s “best first-half performance since 2010”, with all parts of the business profitable on an underlying EBIT level – the first time Qantas International had been in the black since the GFC seven years ago. As well as $374 million in Qantas Transformation Program benefits the carrier also reported improving yields, a $33 million benefit from lower fuel prices and $59 million in savings due to the abolition of the carbon tax.
Flight Centre’s Helloworld Webjet, Qantas Virgin Australia
was in the red to the tune of $47.8 million for the half – however that was a $27 million improvement on the previous corresponding period. On an underlying profit before tax the VA result was a $10.2 million profit.