FLT - Flight Centre Travel Group

[It's Snake Pliskin]

What's happening with this stock?

 

[GreatPig]

Re: Flight centre

From what I can see, it's just continuing the geneal down trend it's been on since 2002.

Cheers,
GP

 

[dutchie]

Re: Flight centre

All travel agencies must be suffering from the fact that so much travel information is available on the net and more importantly it is very easy and convenient to book flights/accomodation/excursions/tours etc yourself.

 

[WaySolid]

Re: Flight centre

A case of poor fundamentals.

They are being left behind in the technology stakes. Visit their website and try and research an international airfare. I'm not sure what role TA might play in this stock but have a personal view that I wouldn't touch it with a stick on the long side.

 

[It's Snake Pliskin]

Re: Flight centre

Thanks.
Yes the fundamentals are a problem at the moment.

 

[RichKid]

Re: Flight centre

Was it Qantas that dropped a favourable arrangement with Flight Centre because of margin pressures last year? I heard that did a lot of damage to them.

 

[krisbarry]

Re: Flight centre

Flight Centre has taken many hits in recent years due to many factors:

a) September 11th
b) Rising Fuel Costs - Airline fuel surcharges
c) Decreased Agency Commissions
d) Online travel agency such as webjet are becoming more popular
e) E-Tickets
f) SARS Virus
g) recent bad press (ACCC) due to slogan "Best Prices Guaranteed"
h) Flight Centre Stores look out of date, very 90's. In urgent need of a make-over

etc. etc.

Travel/Aviation industry world wide is not looking to good.

 

[It's Snake Pliskin]

Those who hold Flight Centre

This is purely for entertainment.

Those of you who hold Flight Centre, would you be kind enough to disclose your purchase prices and intended plans for this stock. Where do you see it going? Why did you buy it? etc.

There is a lot of mixed information on this stock, different perceptions and analysts who have opposing views. Even the analysts of one newsletter have different views which lead to their recommendation.

I'll start by stating I paid $15.46, basically because it was undervalued. I plan to hold for the long term if the fundamentals don't screw up further. I will constantly watch the fundamentals but won't overreact to panick selling. I see this as a quality company with a good track record, but with some problems at the moment. I believe it will only take one good profit forecast to lift this stock again. I see the competition being weaker if there is a downturn in the industry, due to the large presence of flight Centre agencies. I do concede the website issue is a problem that needs to be overcome.

 

[TjamesX]

Re: Those who hold Flight Centre

I don't hold FLT and never have, and I have never actually used their service. But some fundamental questions;

Do they make their money only on commission from selling seats or is it more involved than that. I know that the big push for people to book online direct with the airline would be having an effect and will continue to do so, especially with the move to budget flying.

I assume that they're only real leverage is through the end destination accomodation/packages and the ability to provide these at a discount to the customer because of the volume of packages they sell?

TJ

 

[mime]

Re: Those who hold Flight Centre

I don't think the long team outlook is good mainly because the internet is digging into their profits. Plus I think Qantas cut their comission from 5% to 1%.

 

[TjamesX]

Re: Flight Centre FLT

In the age of people increasingly getting information from the web and it actually being more useful for the consumer;

Re;
realestate.com
seek.com
etc etc etc

The amount of little Flight Centre agencies popping up everywhere really does surprise me. Why couldn't they create a kickass website with graphics/pictures of avery destination/hotel you could ever want to go to and let people create/mix/match their own holiday packages is beyond me! Maybe people do prefer to talk one on one with someone who hands them a glossy brochure - and thats why there's a flight centre agency on every street....

Travel agency group Flight Centre has again disappointed investors after warning that its full-year profit will be below last year's.

But the global company said yesterday that even though it had missed its target, shareholders could look forward to a return to "healthy" profit growth in 2005-06.

Flight Centre said full-year pre-tax profit should be between $106 million and $109 million, down 10 to 12 per cent on its target of $121 million.

Just four months ago, the company predicted annual profit growth would be flat on the previous year. But it has been posting profit warnings since January.

Managing director Graham Turner said profitability had been hurt as Flight Centre spent up on expanding its overseas operations.

Although sales continued to grow at 10 to 12 per cent a year, he said, ongoing investment and other costs had weighed on earnings.

"This has been a difficult year, characterised by consolidation, significant structural change and investment in strategies that will allow us to maintain our competitive edge in the future," he said. "While we have been disappointed with our profit results, we are developing a strong overall business for the years ahead."

Advertisement
AdvertisementFlight Centre's shares fell as much as $1.54 before settling at $14.10, down 70c. The stock has been on a descent since January 13 - from $18.86 - after Flight Centre said first-half earnings would be down 8 to 10 per cent.

Mr Turner said the second half would also be below expectations due to redundancy expenses, asset write-offs and provisioning related to the acquisition of ITG Ltd.

However, chief executive Shane Flynn said the company's business improvement program, called "Full Throttle", would help deliver returns to investors in coming years.

"Full Throttle" emphasises a return to a leaner operating structure, and is expected to deliver $15 million in pre-tax savings in 2005-06 and up to $60 million by the end of 2007-08.

Flight Centre, which operates in Australia, New Zealand, South Africa, Hong Kong Canada, the US and UK, reports its annual results on August 18.

 

[RichKid]

Re: Flight Centre FLT

Hey folks,
I've merged the two threads on flight centre into this thread. Please try to maintain just one thread per stock unless it is absolutely necessary as it helps maintain a well structured site and a flowing conversation, it may also generate more debate.
Thanks!

PS This is a chart of FLT, $14 looks like a key level. Just look at that big candle from last week!! (see GP's chart in post #2 for the long term price patterns).

 

[serp]

Re: Flight Centre FLT

I've been checking the figures and its weird cause profits are down and dividends are up over the last coupld of years??? How does that work? Why pay out higher dividends? Is this because they aren't reinvesting profits into the business? Even though profits for last financial year are tiny compared to say 4 or 5 years beforehand.

 

[tech/a]

Re: Flight Centre FLT

Check out WEBJET WEB they are taking the market by storm.

They even post their monthly profit figures to the ASX you'll find them under announcements.
I first noticed them at 20.5c

There is one place lost profits are going.

 

[el_ninj0]

Re: Flight Centre FLT

Check out WEBJET WEB they are taking the market by storm.

They even post their monthly profit figures to the ASX you'll find them under announcements.
I first noticed them at 20.5c

There is one place lost profits are going.

Wow, I agree tech/a. How do you find out about such great little companies like this?

 

[serp]

Re: Flight Centre FLT

Can anyone answer my question about the rise in dividends but the fall in profit? Whats the motivation behind that?

 

[serp]

Re: Flight Centre FLT

Wow, I agree tech/a. How do you find out about such great little companies like this?

Mate, I thought everyone knows about webjet.

Didn't realise the SP was that low though.

 

[tech/a]

Re: Flight Centre FLT

El ninjO
One of the benifit of technical searches.
its just turned up on a breakouts scan.

Serp.
I'm not a fundamentalist I've posted your question on Reefcap under Fundamentals---I'm sure there will be an answer.

 

[tech/a]

Re: Flight Centre FLT

Serp.

Ducati posted a good response to your question here.

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=2;t=000269

 

[TjamesX]

Re: Flight Centre FLT

Webjet came to my attention last friday.... bit of a saga at the moment and probably deserves its own thread.