Transonic earnings up 39pc for half-year

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15/02/2005

Transonic earnings up 39pc for half-year

Transonic Travel today announced a net profit after tax of $2.4 million for the six months to December 31, 2004.

The result is a significant improvement on the $0.8 million profit the company posted for the first half of 2003-04.

First-half revenue increased by 17 per cent to $31.6 million and earnings before interest and tax increased by 39 per cent to $3.7 million.

Transonic chairman John Ward said the result reflected growing demand for international travel following the SARS-influenced downturn in 2003, as well as tight control of costs.

“Assuming a stable environment, we now expect our earnings before interest and tax for the full year to increase by at least 25 per cent over 2003-04 (when EBIT was $8.3 million),” Ward said.

Transonic ceo Peter Lacaze said the company was now in “an excellent position” to expand its existing operations and take advantage of further acquisition opportunities.

Transonic listed on the Australian Stock Exchange in May 2004.

In July 2004 the company acquired Newmans South Pacific Vacations, a wholesale tour operator from North America to Australia, New Zealand and the Pacific Islands.

In January 2005 it spent $16.5 million to buy ATS Tours, ATS Pacific and Islands in the Sun, which operate leisure business in the US, Australia, New Zealand and Fiji markets.

Transonic also bought 50 per cent of Fiji’s largest tourist coach company, Coral Sun.

15 February 2005

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