Traveller’s Choice has once again preserved its perfect record of returning a profit every year of the company’s 42-year history.
The travel agent network posted a pre-tax operating profit of $2.05 million for the 2019 financial year – a 32 per cent increase on FY18.
Travellers Choice managing director Christian Hunter (pictured) said strong airline ticket sales unpinned the company’s growth.
“Overall, we observed a 13 per cent rise in the number of airline tickets processed year-on-year, with a 12 per cent increase in international airline tickets,” he said.
“Revenue from our preferred agreements rose across the board, reflecting robust trading conditions and the proven ability of our members to direct business to our valued partners.”
Hunters said Travellers Choice also benefited from a reduction in costs and its continued investment in support services that help members identify and seize commercial opportunities, particularly local area marketing and digital promotions.
The Travellers Choice board has approved the distribution of 88 per cent of its FY19 profit directly to members, who remain the company’s sole shareholders.
All member shareholders will receive a five per cent unfranked dividend (25 cents per share), with the majority of the remaining operating profit distributed through trading rebates based on sales support for preferred agreements.
“In terms of the current financial year, it’s early days, but forward sales are looking positive,” Hunter said.
“In addition, we are preparing to welcome a number of new, high-calibre members to the network.
“As a result, we are anticipating a strong profit performance for the company [in] 2019/20.”
Travellers Choice member shareholders will meet in Adelaide in November for the group’s annual general meeting and conference.