Online sales help lift Flight Centre to record first half profit

Graham Turner’s Flight Centre has set an interim net profit thanks to strong online and in store sales growth in both corporate and leisure travel.

Australia’s biggest travel agency group has soared to new heights, delivering another record first half result on the back of strong sales.

Flight Centre reported this morning that its net profit shot up 20.7 per cent to $110.8 million over the six months to December. That was up from $91.8 million a year ago.

Revenue swelled 15 per cent to $1.05 billion thanks to strong online and in store sales growth in both corporate and leisure travel.

Managing Director Graham Turner said the group’s three largest businesss--Australia, the UK and the USA—generated nearly 80 per cent its total transaction value.

“The Australian business has, so far, been the key contributor to overall results although we have also seen continued growth in offshore earnings,’’ Mr Turner said.

The Brisbane-based company continued to expand its store network, with 2,643 stores in operation as of the end of 2013, an 8.2 per cent increase on the previous year. It has created an additional 1,100 full-time jobs over the past year.

Flight Centre said it had also increased in-store productivity and lifted its income margin slightly to 14.1 per cent during the half.

The company said it expects to post a pre-tax profit of between $370 million and $385 million for the full 2013-14 financial year, up between eight and 12 per cent on the underlying 2012-13 result.

“The company sees growth opportunities in all markets and will continue to focus on its seven strategic priorities that lead to what we refer to as our Killer Theme - our evolution from travel agent to world class travel retailer,” Mr Turner said.

Flight Centre announced a fully-franked interim dividend of 55 cents per share, up from 46 cents per share a year ago.