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Flight Centre shares dip despite record profit

AAP  |  23 Aug 2018Text size  Decrease  Increase  |  
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SYDNEY [AAP] Flight Centre (ASX: FLT) shares have plunged despite the bookings business lifting full-year profit by 13.9 per cent to $262.9 million and posting record results.

Shares were down 8.8 per cent to $61.22 after the company reported revenue for the year to 30 June also rose, by 6.5 per cent, to $2.95 billion.

Flight Centre said it achieved record total transaction value of $21.8 billion in fiscal 2018, and record underlying pre-tax profit of $384.7 million.

Businesses in the Americas, Europe, the Middle East and Africa generated about 40 per cent of underlying profit and Flight Centre said profit in the Americas more than doubled.

Australia and New Zealand showed slower than normal transaction growth of four per cent, the company said.

Flight Centre declared a final dividend of $1.07, up from 94 cents a year earlier.

UBS analysts said the result was "good" but of "mixed quality" with the international performance strong but Australia below expectations.

The company was the subject of media attention on Wednesday, with the ABC's 7.30 Report running a critical story making allegations about Flight Centre's business practices and culture.

 

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