Flight Centre acquires Irish travel agency; Myer’s Q3 results lower than expected; Shares down on open: Midday Roundup

Flight Centre has acquired a Dublin-based travel agency, flagging it could also launch a retail travel business in the country in order to strengthen its presence in the European market.

The acquisition price has not been disclosed. However, The Australian reports Flight Centre paid around $2.1 million for Ireland’s Travelplan Corporate.

Flight Centre managing director Graham Turner said the acquisition would enhance the company’s presence in the region.

“We know our global colleagues well and look forward to working together even more closely and to continued expansion and profit growth in Ireland,” he said.

The news follows the travel agency’s announcement it will appeal an $11 million dollar fine imposed by the Federal Court in March for anti-competitive behaviour.

Myer’s Q3 results lower than expected

Myer released its third quarter sales results today, which were lower than analysts’ expectations.

Total sales were $646.5 million, down 0.9% compared with the previous corresponding period.

Myer chief executive Bernie Brookes said the results were due to store closures and ongoing refurbishments.

“The marginal decline in total sales reflected the continued significant sales impact of the refurbishment of three of our top 20 stores and the commencement of a refurbishment at the Macquarie store in February,” he said. “In addition, sales continued to be impacted by the closure of Dandenong (VIC) last October and more recently the closure of the store at Elizabeth (SA) in February.”

Shares down on open

The S&P/ASX200 benchmark was down 0.2 points to 5448.6 at 11:55 AEST. Last night the Dow Jones closed down 0.13%, falling 21.97 points to 16,558.87.