Mixed results see JTG profits slump

Mixed results see JTG profits slump
By admin

Outgoing Jetset Travelworld boss Peter Lacaze has talked of a “challenging” 12 months, as the group’s profits tumbled 72% on last year.

Profit after tax for the financial year totalled $5.5 million, down from $19.2 million the previous year.

Lacaze blamed the result on reduced airfares, exchange rate volatility and industrial action against Qantas.

But he described the end result as “mixed”, with revenue growing 6% to $361.1 million and total transaction value (TTV) climbing 8% to $5.65 billion.

Its wholesale operations saw TTV growth of 30% to $858.1 million for the 12 months, while its revenue margin rose 13.4%. The result includes its newly launched ReadyRooms.com.au business, unveiled in May this year.

The firm claimed the site had been “enthusiastically embraced” by the trade, with July bookings more than double those in May.

Meanwhile, Lacaze said the retail segment, which produced a 4% increase in TTV and a revenue margin of 4.82%, had performed well in a “variable” market.

“Despite the market challenges, it is pleasing that the group generated TTV of $5.63 billion and maintained a revenue margin in excess of 6%,” he said.

The TTV of its travel management business increased 14% to $744.4 million over the year, but incurred an adjusted EBITDAI loss of $3.3 million.

JTG announced in April that losses incurred within the segment were “in excess of expectations”.

News that it would cut 110 positions across the business, predominantly in the travel management segment, followed shortly after.

Chairman Tom Dery said management would now focus on implementing restructuring plans revealed in June, and adapting the business to “current and emerging trends”.

He added that the economic outlook for the financial year ending June 2013 looked "uncertain".


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