Flight Centre Travel Group Ltd

FLT Details
Revised PBT guidance for full year: Flight Centre Travel Group Ltd (ASX: FLT) reported for a record first half (1H) sales with a profit before tax (PBT) in consensus with the targeted range for the six months to December 31, 2016. 1H total transaction value (TTV) topped $5billion for the first time at the back of strong ticket sales. However, the record sales were not translated to record 1H profits, FLT still reported for a decent underlying PBT of $113.2million. In Europe, the business delivered record 1H results in local currency. On the other hand, currency headwinds affected UK result translation. The group secured three small acquisitions in addition to Shenzhen Sunny Holiday International that include a 49% interest in Ignite (Australian retail business), the European corporate businesses, and Bengaluru-based Travel Tours Group's (TTG) business assets.
 

Market Share (Source: Company Reports)
 
FLT has a strong balance sheet, with more than $350 million in positive net debt. The drivers for 2H results include accelerated TTV growth if stability in airfare pricing is achieved, stable trading environment with improvement in the USA and Europe, boost from touring businesses and cost control benefits. Given some bit of uncertainty around airfare pricing, foreign exchange movement and so forth, the full year underlying PBT is now expected to be between $300 million and $330 million (previously $320 million-$355 million). The stock has moved up 3.8% on March 10, 2017. We give a “Buy” recommendation at the current price of $ 29.94

 
FLT Daily Chart (Source: Thomson Reuters) 

Sealink Travel Group Ltd

SLK Details
Strong 1H 17 financial performance: Sealink Travel Group Ltd (ASX: SLK) reported for record interim result with 1H 17 strong sales and profit in all businesses. The group’s revenue of $105.8 million surged up 42% on 1HFY16 revenue of $74.4 million while NPAT of $13.1 million for 1HFY17 was up 52% over 1HFY16 NPAT of $8.6 million. Underlying EBIT grew 48% to $20.7 million, before acquisition related expenses. There was a 34% rise in basic EPS of 13.0 cents per share on 1HFY16 and the fully franked interim dividend of 6.0 cents per share was up 33.3%. The result was driven by strong tourism growth and full period for SeaLink South East Queensland/Gladstone and Captain Cook Cruises, Western Australia, and strong international tourism demand growth of 11% per annum. Significant boost came in from new ferry services and the uplift in sales and margins for the lunch and dinner cruise market on Sydney Harbour. New innovative IT solutions and mobile ticketing applications have also been rolled-out by the group. SLK has started the second half as per the expectations and expects to report an improved profit for FY17. However, FY17 EBIT from Gladstone / SEQ operations is expected to be below the FY16 figure owing to previously foreshadowed transition from construction to operational contracts in Gladstone. The group also announced that the Company Secretary, Trevor Waller, has retired recently. We maintain a “Hold” recommendation on the stock at the current price of $ 4.33

 
SLK Daily Chart (Source: Thomson Reuters) 

Corporate Travel Management Ltd

CTD Details
Rise in EBITDA from organic growth:Corporate Travel Management Ltd (ASX: CTD) reported for 1H 17 net profit after tax attributable to the owners of CTD, of $22.1 million against $17.3 million of previous corresponding year. There was 44.5% growth in EBITDA, adjusted for acquisition and other non-recurring costs (adjusted EBITDA), to $40.4 million with 29% of the adjusted EBITDA increase resulting from organic growth. CTD’s SMART technology program and expansion of the global network were key contributing factors to organic growth and client wins. CTD declared an interim dividend at 12 cents per share against 2016 interim dividend of 9.0 cents per share, and this represented an interim payout ratio of 57%. Australia and New Zealand’s TTV (unaudited) grew by 7.7% and North America’s TTV (unaudited) rose by 88.8%, while the operation in Asia contributed $638.6 million in TTV (unaudited) and the operation in Europe contributed $162.9 million in TTV (unaudited). Net assets of $300.3 million represent a strong financial position. Meanwhile, Brooke Connell has ceased to be the group’s Joint Company Secretary.


EPS and Profit Growth (Source: Company Reports)
 
The group is being at the top end of FY17 underlying EBITDA guidance, or $97m and seems to witness growth into FY18. The stock has surged 17.69% in last one month (as at March 09, 2017) and now trades at higher levels. We give a “Hold” recommendation at the current price of $ 19.47

 
CTD Daily Chart (Source: Thomson Reuters)

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