08-Feb-2006 9:49 AM
Flight Centre - Improved Performance for Flight Centre Limited
Analysis
Flight Centre Limited today released preliminary details on its second
quarter performance, ahead of its first half result announcement on
February 23.
The company expects a pre tax result for the three months to December 31 2005 that is broadly in line with the previous corresponding quarter*.
Executive chairman Graham Turner said the unaudited results signalled that Flight Centre Limited had turned the corner after a disappointing first quarter.
"The second quarter achievements are pleasing and show that the steps we have taken to reduce costs and to build a stronger overall business are beginning to generate results," he said.
"This should provide a solid springboard into a stronger second half."
The expansion of the company's FCm Travel Solutions corporate travel management network also continues to gain momentum.
Expansion in Asia has been rapid with the local network now extending to Singapore, Thailand, Korea, the Philippines, Malaysia and Japan, via licensing agreements.
This is in addition to the company's wholly owned business in Hong Kong, its 50% joint venture in China and its majority holding in the Indian FCm Travel Solutions business.
"We are starting to see the benefits from our investment in creating the FCm Travel Solutions network," Mr Turner said.
"With last year's acquisition of India's Friends Globe Travels, a business that is already delivering strong profit growth, and our investment in the joint venture in China there are exciting opportunities for Flight Centre Limited and for FCm Travel Solutions in the world's two growth economies."
*Flight Centre Limited's 2004/05 profit results have been adjusted for IFRS.
Flight Centre is a CAPA Member. For more information on the Centre for Asia Pacific Aviation's membership service, please click the icon below.
Executive chairman Graham Turner said the unaudited results signalled that Flight Centre Limited had turned the corner after a disappointing first quarter.
"The second quarter achievements are pleasing and show that the steps we have taken to reduce costs and to build a stronger overall business are beginning to generate results," he said.
"This should provide a solid springboard into a stronger second half."
The expansion of the company's FCm Travel Solutions corporate travel management network also continues to gain momentum.
Expansion in Asia has been rapid with the local network now extending to Singapore, Thailand, Korea, the Philippines, Malaysia and Japan, via licensing agreements.
This is in addition to the company's wholly owned business in Hong Kong, its 50% joint venture in China and its majority holding in the Indian FCm Travel Solutions business.
"We are starting to see the benefits from our investment in creating the FCm Travel Solutions network," Mr Turner said.
"With last year's acquisition of India's Friends Globe Travels, a business that is already delivering strong profit growth, and our investment in the joint venture in China there are exciting opportunities for Flight Centre Limited and for FCm Travel Solutions in the world's two growth economies."
*Flight Centre Limited's 2004/05 profit results have been adjusted for IFRS.
Flight Centre is a CAPA Member. For more information on the Centre for Asia Pacific Aviation's membership service, please click the icon below.
