Third Consecutive Record Profit for Jetset Travelworld Group

The Jetset Travelworld Group, one of Australia’s leading retail travel franchise networks, has declared a record before tax profit of $12.8 million and an after tax profit of $9.0 million.

These represent increases of 39.8% and 41.4% respectively over last year.

As a result, the Board has declared a final dividend of 4.0 cents per share fully franked. This brings the total of proposed or paid dividends in respect of the 2006 financial year to 6.0 cents per share fully franked, representing a 50% increase on the previous year.

The Group’s Executive Chairman, Brian Wild, said the result was a superb outcome and a credit to the efforts of all staff and the agency network, particularly against the backdrop of recent structural consolidation in the industry and changes to commission arrangements.

“It has been a particularly important year for the Group with the result being a direct reflection of initiatives undertaken during the past two years, among them a comprehensive review of our strategic direction, a robust focus on cost-containment and strong growth in outbound markets,” said Mr Wild.

The Group’s Chief Executive Officer, Joe Esposito said the result maintains a strong cash position to take advantage of any opportunities that may arise in the future.

Mr Esposito said the past year has been overlaid with a renewed emphasis on a marketing presence with the introduction of a highly effective “Partnership Marketing Program”, redefining the Group’s relationships with preferred suppliers, and the implementation of revitalised marketing strategies for the Jetset and Travelworld brands.

“The Company’s insurance product, Travellers Assistance, the National Ticket Centre together with strong sales performance have all contributed to the outstanding result,” said Mr Esposito.

He said further initiatives to underpin profit growth in the 2006/07 financial year will be pursued by Michael Reed, who begins as the new Chief Executive of The Jetset Travelworld Group on 28 August 2006.

Mr Wild noted that Joe Esposito would be leaving the Company to return to his hometown of Melbourne where he planned to spend more time with his family.  He said that the Board acknowledged the contribution Mr Esposito had made during his term as Chief Executive.

The Board is confident about the outlook for the Company, with continued profit growth expected.

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