Some good news from tvl in relation to their financial position.
The put option news is not so good. It looks like the International Group is not interested in tvl.
Almost no reaction from the market.
Travel.com.au expects FY EBITDA of $400K 13/06/2007 10:24:25 AM
Travel.com.au Ltd expects to post a rise in annual underlying earnings after experiencing a surge in revenue growth in the first two months of the final quarter.
The online travel agent said on Wednesday it expects to report annual earnings before interest, tax, depreciation and amortisation (EBITDA) of between $400,000 and $500,000.
TVL said its guidance excluded legal and advisory costs of up to $250,000 within the FY07 second half in relation to the lastminute.com.au change of control put option.
"After trading at or around EBITDA breakeven for the first nine months of FY07, TVL experienced accelerated revenue growth in the first two months of the final quarter," the company said.
"TVL now expects to report full year FY07 EBITDA of $400,000 to $500,000, before put option costs."
Last year, TVL reported a loss in EBITDA of $273,882.
TVL also announced that it had deferred the release of its new travel.com.au website until the second quarter of fiscal 2008.
TVL and the travel industry generally have benefited from benign trading conditions, with consumer confidence high and the strong Australian dollar encouraging international travel.
But TVL said there are also signs competition within the online travel sector is intensifying.
TVL said it would not provide guidance for next financial year until it had assessed trading in the first quarter.
"Directors emphasise that despite TVL experiencing high growth from a low base in Q4, it is too early to determine the sustainability or likely rate of future growth," the company said.
With regards to the lastminute.com.au put option, TVL said negotiations are continuing with Lastminute Network and an update would be provided as soon as is practicable.
A new lastminute.com.au website, which provides a hotel booking service, was launched in March, which crossed about 85 per cent of the website's operational systems to Australia from the United Kingdom.
TVL said the remaining processes will be gradually migrated to Australia over the next 12 months.
In the five months to May 31 this year, TVL said international flight bookings surged 44 per cent with total online and offline revenues in that business increasing by 40 per cent.
But growth in the lastminute.com.au business was constrained by the launch of the new website in March.
Hotel booking numbers for the period increased by 27 per cent.
TVL said it expects growth in hotel booking to increase during FY08 as the brand's online marketing strategy takes effect.
TVL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
