JTG sees TTV tumble as review continues
Jetset Travelworld has reported a decline in pre-tax profits of 9.5% to $14.9 million amid a sharp fall in total transaction value (TTV) and revenue.
Retail TTV in the six months to December 31 dropped 9.3% to $1.8 billion while the wholesale sector tumbled more than 14% to $337.3 million.
The Travel Management division fared even worse with TTV down 18.6% to $305.8m and an EBITDAI loss of $1.8m, significantly up on the $732,000 deficit in the previous corresponding period.
Profit after tax attributable to members fell almost 23% to $8.6m.
The result came as the company said the development of "long term strategic options" was well advanced. A "
Chief executive Rob Gurney insisted that a detailed review of the business over the past six months has proved that it "has a key role to play in the growing and dynamic travel industry".
"We remain focused on transforming the business to build new capabilities and better leverage the existing assets to establish a platform for long term success," he said.
Franchisees, members and suppliers will be consulted via a "clear plan for engagement" between March and June.
Gurney said the financial results were in line with expectations and reflected a continuing decline in average selling prices and a cut in Government spending in the Travel Management sector.
Overall TTV fell 11% to $2.5b despite the number of domestic and international air transactions rising 5% and 6% respectively. Revenue slipped 8.8% to $171m.
But Gurney said cost cutting measures, including the loss of 110 jobs, 60% in the Travel Management division, have helped streamline operations.
"The restructure has been accelerated and further cost reduction initiatives have been implemented in the retail segment in the first half of FY13," he said. "The outcome of these initiatives is that operating costs have decreased by over 10% in the first half."
Turning to the future, Gurney said "substantial progress" has been made in its "business transformation" review.
Many initiatives "are still in their infancy" and the full cost and timing of implementation remains unknown.
Among the key objectives outlined by Jetset Travelworld are to better leverage the group's scale, develop deep consumer insight, build a digital and multi-channel capability and provide a compelling offer for franchisees and suppliers.
"The assessment of the strategic options available to JET has been thorough and comprehensive," Gurney said. "We will continue to thoroughly test the strategic options and initiatives with key stakeholders through personal engagement with franchisees and major suppliers.
"The extent of the transformation envisaged is expected to deliver long term benefits in the dynamic and growing travel market."
Adjusted EBITDAI in the retail sector fell 2.6% to $32.4m while revenue margin climbed from 5.1% to 5.4%. Costs reduced by 5.8%.
Wholesale adjusted EBITDAI declined 4.5% to $5.5m with revenue margin up from 13.2% to 13.7%.
Latest News
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Globally-renowned chefs gather for Vivid Food 2024
As a human, we agree that food is a fundamental part of the human experience. Some might say the most fundamental.
Air New Zealand returns to Hobart and Seoul
If you notice an uptick in Kiwis making their way through the Mona, you know why.
European Waterways targets multi-generational families with ‘floating villa’ deal
The jury is still out on whether spending a week on a 'floating villa' with family is a hell or a paradise.
Luxury Escapes launches ‘sail away’ sale
Rest assured, you'll be getting your 'sails' and 'sales' mixed up for the rest of the day.
Rex-owned National Jet Express adds weekly charter between Brisbane and Orange
This is for mining and civil contractors, so please, put your holiday attire away.
Let the games begin. Viking introduces eye-watering benefits for the industry’s top 10 advisors
Did someone say 'trip to Venice'? Hold my coat, this one is far too good to miss!
Best friends or frenemies? What is the REAL relationship between sales and marketing?
We can all stop fighting over the corner office because our mothers were right - we are all important in our own way.
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.