Flight Centre Travel Group Limited (ASX:FLT) is a leading travel company which has generated $21.8 billion in total transaction value in FY 2018.
On 21 September 2018, Flight Centre Travel Group’s shares initially uplifted by 0.019% after the announcement of its acquisition of Umapped company to enhance digital transformation capabilities. However, FLT stock soon slipped by 0.263% as at 2:30 PM AEST.
Umapped is a Toronto-based technology company which provides collaborative B2B2C itinerary and experience platform which helps leading global brands and Travel advisors to engage with their customers throughout their travel journey. With this acquisition, the company is expecting to enhance its mobile and web services to deliver better templates, documentation and real-time communication between customers and consultants. The company is planning to deploy Umapped software in many countries within a year. The company is planning to use its general cash to fund the acquisition. The purchase price of the acquisition is not yet disclosed by the company.
In a way, FLT is looking at measures to revolutionize the ways in which the traditional travel industry has been operating. With the above move, FLT will integrate Umapped products at businesses across the globe extending from the initial use in GOGO business in the USA.
For the year end June 30, 2018, the company recorded a TTV of $21.8 billion which was 8.5% higher than the previous year. The total revenue of the company increased by 6.5% from $2,770 million in FY2017 to $2,950 million in FY2018. The earning per share of the company increased by 14% from 228.5 cents in FY2017 to 260.5 cents in FY2018. The company is maintaining a strong cash position by having $1.5 billion in cash and cash investments till June 30, 2018. Due to increase in the corporate volumes and acquisitions, the trade and other receivables have also increased. The positive net debt of the company increased by 7% to $517 million as compared to the previous year. The operating cashflow was $314 million in FY 2018. The capital expenditure decreased to $87.3 million out of which around 50% was spent on IT & systems. The company is expecting around $100 million to $110 million expenditure in FY 2019. The company is expecting a 3.6% growth in the travel sector in FY 2019. The company has declared $1.67 fully franked dividend for each share in FY 2018.
FLT’s share price traded at $53.190 at market capitalization of $5.39 billion as on 21 September 2018.
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