Travel retailer Flight Centre announced another record profit this morning – $349.2 million before tax, 20% more than last year. Cost control was a significant factor with modest turnover growth of 7% to $14.3 billion.
The company said average rent per shop (it has 2500 now) decreased, while sales and marketing spend also declined, although this is likely to be an aberration from the traditionally aggressive marketer.
“Lowering cost per enquiry remains a priority but FLT’s overall investment in sales and marketing is likely to increase year-on-year in future, as has been the case historically,” the company said.
Managing director Graham Turner said all 10 countries were profitable for the third consecutive year while there were “record earnings before interest and tax from FLT’s three largest businesses – Australia, the United Kingdom and the united States – plus the emerging Singapore and Greater China businesss.”
He added that online bookings grew 20%.
“Key results drivers for 2012/13 included business growth, margin improvement, productivity enhancements and diversity”.