Flight Centre Travel Group Ltd

FLT Details
 
Riding on business expansion: Flight Centre Travel Group Ltd (ASX: FLT) has strengthened its corporate travel footprint on Continental Europe. The company, which recently acquired corporate businesses in Germany, Finland, Norway, Denmark and Sweden agreed to acquire a minority interest in 3Mundi, a travel and technology company with operations in France, Switzerland and Spain. FLT will initially invest in a 25% interest in the Paris-based business, with additional put and call agreements in place to allow FLT to potentially increase its holding to 100% in the future.
 
Recently, it had acquired a 24.1% interest in Bibam to strengthens e-commerce capabilities. Bibam is an Argentina based travel and technology group with a strong presence in the on and offline leisure, corporate and wholesale sectors. Importantly, it is Argentina's second largest travel group, owns and operates the Biblos brand and fast-growing e-commerce player Avantrip.com. The company's investment in Bibam would deliver enhanced digital commerce capabilities through access to Bibam's scalable ecommerce platforms and software development teams, while providing access to a strategically aligned and experienced partner. FLT will pay $US7million for its 24.1% stake in Bibam and will be represented on the company's board, with Mr. Smith to be appointed a director. During the 2017 financial year, FLT expects its online leisure businesses, which also include the rapidly growing flightcentre.com.au website, to generate in the order of $1billion in total transaction value (TTV) globally.Meanwhile, FLT stock has moved up 39.3% in the last three months, while it is up 33.3% in the last one year as on June 29, 2017. We give a “Buy” recommendation on the stock at the current price of $39.87
 

FLT Daily chart; (Source: Thomson Reuters)

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