2002

Flight Centre Limited posts solid first quarter results

Tuesday, 31 October 2002

Flight Centre Limited has started the 2002-2003 fiscal year solidly, posting improved results (unaudited) during the three months to September 30. Australasia’s leading travel retailer today reported significant increases in profit and sales figures for the first quarter of 2002-2003, in comparison to the corresponding quarter in 2001-2002. Flight Centre Limited chairman Norman Fussell said sales turnover had increased 33% to $1.05 billion, with pre tax profit jumping 59% from $14.1 million to $22.4 million during the period. Mr Fussell said profit after tax was $15.5 million, compared to $9.8 million in the previous September Quarter, a 58% increase. "These figures are promising, but it is still too early to make any predictions on likely results for the half year or full year," he said. "History tells us that seasonal and economic differences can lead to significant movements between individual quarters. "In comparing the figures it is also important to note that September 2001 was a reduced profit month, which had an impact on the first quarter result of 2001-2002. Likewise, the effects of the Bali tragedy may influence our performance in the coming months. "As a company, we can be pleased with our achievements in the early months of the current fiscal year, but our focus is very much on the future." Mr Fussell said the company’s Australian and New Zealand operations continued to perform strongly, along with the United Kingdom and South African stores and businesses. He said the company had seen a strong profit trend in West Canada and an improvement in profit in East Canada. In California, an increase in shop numbers had led to a 50% increase in turnover, but had also meant that the trend of reduction in losses reported at the end of last year had not carried on into the first quarter. Flight Centre Limited managing director Graham Turner said the company had increased its retail presence in the first quarter of 2002-2003 by opening 93 new stores. He said the company planned to open a total of 170 retail stores in 2002-2003. "Expansion will take place in all markets," Mr Turner said. "This will mean that by the start of 2003-2004 we will have about 1000 retail stores in our seven countries of operation." At today’s annual general meeting, Mr Fussell also announced that Flight Centre Limited would move to quarterly reporting of its financial results, effective immediately.