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UPDATE 1-Flight Centre FY profit falls 4.7 pct year-on-year

Published 25/08/2016, 09:28 am
© Reuters.  UPDATE 1-Flight Centre FY profit falls 4.7 pct year-on-year
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SYDNEY, Aug 25 (Reuters) - Australia's top listed travel agent Flight Centre Travel Group Ltd FLT.AX said on Thursday its annual net profit fell 4.7 percent, owing to an airfare price war cutting into its margins, geopolitical uncertainty weighing on business travel and underperformance in India and Asia.

The company's net profit for the year to June 30 was A$244.6 million ($186 million), lower than the corresponding period last year, which was A$256.6 million. The result was below an average forecast of A$249 million from eight analysts polled by Thomson Reuters I/B/E/S.

"In the UK, the Brexit referendum has adversely affected consumer confidence and demand for travel in both the corporate and leisure sectors," Flight Centre Chief Executive Graham Turner said in the company's annual report.

He said airfares were particularly low during the June quarter, stoking an increase in customer numbers but not revenue, causing the company to miss sales targets.

Earnings-before-interest-and-tax in India, Asia and the United Arab Emirates fell 89 percent from A$10.3 million last year to A$1.1 million due to a downturn in the oil and gas sector reducing corporate travel, and lower airfare yields in India.

Flight Centre had issued a profit warning in May. company announced a final dividend of 92 cents, for a total dividend of $1.52, the same total dividend as 2015. ($1 = 1.3146 Australian dollars)

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