Latest news with #Brisbane-headquartered
West Australian
28-04-2025
- Business
- West Australian
‘Exacerbated volatile conditions': Flight Centre downgrades full-year profit forecast amid US tariff chaos
Flight Centre has downgraded its full year profit guidance, blaming US President Donald Trump's tariff chaos 'exacerbated the volatile trading conditions'. Shares in the Brisbane-headquartered travel agent fell to a low of $11.94 in early trade on Wednesday after it revised its profit guidance from between $365 million to $405m, to a range of $300m and $335m. Shares have since recovered to be up 0.8 per cent to $12.56 just after 10am. In an update to the Australian Securities Exchange, Flight Centre pointed to 'recent US developments' that have led to lower-than-expected total transaction value growth in core brands, impacting overall margins. 'Second quarter earnings momentum reported at the half year flowed through to early 3Q results before US policy changes began to impact business and consumer confidence and corporate and leisure sales in March,' it said. The company said several actions were being implemented to address 'short-term results volatility, under-performing businesses' like StudentUniverse — a travel booking service for students and young adults — and its Canada leisure division. These included cutting its full-time employees by 5 per cent, predominantly in non-customer-facing areas, a recruitment freeze in other businesses, a 15 to 20 per cent capital expenditure reduction, as well as temporary airline capacity shifts away from US destinations. Flight Centre is currently reviewing StudentUniverse, which is trading below pre-pandemic levels and expected to lose up to $10m in the 2025 financial year. The company was initially expecting a result close to breakeven. 'Stronger overall results are expected in FY26 and beyond as trading conditions stabilise and as the strategies that are already in place gain momentum,' Flight Centre said. Flight Centre at the same time also announced an on-market share buyback of up to $200m, set to begin early next month and be completed within 12 months. 'While FY25 has been a turbulent year, our fundamentals are strong and we are well placed to deliver more rapid growth and enhanced shareholder returns next year and into the future as the trading cycle stabilises,' managing director Graham Turner said. 'Group-wide, we are maintaining cost discipline and implementing strategies to boost productivity and enhance the customer experience. 'The $200m buyback we have just announced underlines both our belief in the strength of our business and our commitment to enhancing shareholder returns.'
Reuters
10-02-2025
- Business
- Reuters
Australia's Star Entertainment rises on bids for its Brisbane joint venture
Feb 10 (Reuters) - Shares of Australia's Star Entertainment Group ( opens new tab rose on Monday after the embattled casino operator said it received separate offers from its Hong Kong-based investors to acquire a 50% interest in its Destination Brisbane Joint Venture. The Brisbane-headquartered firm's stock was up 9.1% at A$0.12, as of 2317 GMT, and was the top gainer on the broader benchmark S&P/ASX 200 index (.AXJO), opens new tab, which was down 0.6%. The stock, which is currently the top gainer on the benchmark index, has shed 42.1% so far this year. Destination Brisbane Consortium is a joint venture between Star Entertainment and its Hong Kong partners, Chow Tai Fook Enterprises and Far East Consortium. It operates Queen's Wharf Brisbane which includes, opens new tab luxury hotels and restaurants, among other amenities. Star owns 50% interest, opens new tab in the joint venture while Chow Tai Fook Enterprises and Far East Consortium own 25% each. The casino operator said none of the proposals have provided "sufficient value" for the company and that it continues to engage with the both the parties to negotiate the proposals. The announcement came as response to recent media report relating to the proposed offers. Last month, Star said it would divest its Star Sydney Event Centre assets to theater owner and operator Foundation Theatres for A$60 million ($37.5 million) as it undergoes a cash and liquidity crunch. Since 2021, Star has been embroiled in a slew of government probes over possible breaches of anti-money laundering and counter-terrorism laws at its Sydney and Queensland casinos. ($1 = 1.5997 Australian dollars)
