Flight Centre (FLT) - FY15 result in line and outlook comment stronger than market expectations

Flight Centre had an income margin of 13.6% as compared to 14% in pcp which contributed to the lower underlying profit. The lower income margin reflected lower commission earnings in Australia, a slight change in product mix brought about by rapid corporate travel growth, and recognition of an additional component of accommodation TTV for the first time. Net operating cash flow up 60% to $362.5m. FLT sees solid growth prospects globally during 2015/16 and will target an underlying PBT between $380million and $395million for the year to June 30 2016. If achieved, this will represent 4%-8% growth on the $366.3million statutory PBT achieved during 2014/15. FLT said it started the year “reasonably” and “tracking in-line with Profit before tax growth target”. Read the full summary here: (VIEW LINK). The full report will be available exclusively to Bell Potter clients tomorrow.