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Flight Centre’s half-year profits slump 74%

written by Adam Thorn | February 27, 2020

Flight Centre revealed on Thursday that its half-year profits after tax plunged 74 per cent, from $85 million to just $22.1 million.

The travel group also cut its full-year profit guidance by 22 per cent, to between $240 million and $300 million, which it blamed on the ongoing coronavirus outbreak.

Its shares have been trading 20 per cent lower since the start of 2020.

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Chief executive Graham Turner said, “It is, of course, an evolving situation and we will continue to monitor developments.”

The group blamed a series of global events for the results including Brexit, the US-China trade wars and civil unrest in Hong Kong.

The travel group has cut its interim dividend after delivering the results on Thursday, which cover the second half of 2020.

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Underlying profit was 20 per cent lower due to “underperformance” in cost growth, leisure operations and acquisitions, and growth in its online leisure and low-margin foreign exchange businesses.

Its half-year dividend of 40 cents per share was down from 60 cents in the same half of 2020.

Turner said, “Unfortunately, we were unable to fully benefit from this accelerated leisure and corporate [transaction] growth.

“Within our business, we have continued to proactively address internal factors that have impacted profit growth recently and have also initiated strategies to deliver further market share growth and greater efficiency in the future.”

25% off starts now! Australian Aviation magazine Cyber Monday sale is now live. Have the very best of Australian Aviation’s annual print and digital subscription. This includes every In Focus and Behind the Lens digital magazine, special coverage, exclusive photos and editions you may have miss. Subscribe now at australianaviation.com.au.

Flight Centre’s half-year profits slump 74% Comment

  • Rob Hall

    says:

    Their first mistake was dropping their popular cruise specialist division “Cruiseabout” & replacing that with
    “travel Associates” What a meaningless business name is that. They now seem to be closing some of those
    offices, with their better sales operators now working from home. What does that situation say to regular and
    experienced cruise customers? Go figure!

Leave a Comment to Rob Hall Cancel

Your email address will not be published. Required fields are marked *

Flight Centre’s half-year profits slump 74%

written by Adam Thorn | February 27, 2020

Flight Centre revealed on Thursday that its half-year profits after tax plunged 74 per cent, from $85 million to just $22.1 million.

The travel group also cut its full-year profit guidance by 22 per cent, to between $240 million and $300 million, which it blamed on the ongoing coronavirus outbreak.

Its shares have been trading 20 per cent lower since the start of 2020.

Advertisement
Advertisement

Chief executive Graham Turner said, “It is, of course, an evolving situation and we will continue to monitor developments.”

The group blamed a series of global events for the results including Brexit, the US-China trade wars and civil unrest in Hong Kong.

The travel group has cut its interim dividend after delivering the results on Thursday, which cover the second half of 2020.

PROMOTED CONTENT

Underlying profit was 20 per cent lower due to “underperformance” in cost growth, leisure operations and acquisitions, and growth in its online leisure and low-margin foreign exchange businesses.

Its half-year dividend of 40 cents per share was down from 60 cents in the same half of 2020.

Turner said, “Unfortunately, we were unable to fully benefit from this accelerated leisure and corporate [transaction] growth.

“Within our business, we have continued to proactively address internal factors that have impacted profit growth recently and have also initiated strategies to deliver further market share growth and greater efficiency in the future.”

25% off starts now! Australian Aviation magazine Cyber Monday sale is now live. Have the very best of Australian Aviation’s annual print and digital subscription. This includes every In Focus and Behind the Lens digital magazine, special coverage, exclusive photos and editions you may have miss. Subscribe now at australianaviation.com.au.

Flight Centre’s half-year profits slump 74% Comment

  • Rob Hall

    says:

    Their first mistake was dropping their popular cruise specialist division “Cruiseabout” & replacing that with
    “travel Associates” What a meaningless business name is that. They now seem to be closing some of those
    offices, with their better sales operators now working from home. What does that situation say to regular and
    experienced cruise customers? Go figure!

Leave a Comment to Rob Hall Cancel

Your email address will not be published. Required fields are marked *

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