MFS will keep the Stella Group and has upgraded the company's profit guidance to at least EBITDA of $220 million for the 2008 financial year – an increase of $10 million over the previous guidance.
MFS’ chief executive Michael King said after reviewing Stella’s year-to-date results, it was the decision of the board of MFS that it was in the best interests for Stella to be withdrawn from partial sale.
“The Stella Group has achieved financial year-to-date EBITDA of more than $63 million, putting it comfortably on track to exceed FY08 market guidance on a seasonally adjusted basis. The Stella Group’s profit guidance for the current financial year has been upgraded to at least EBITDA of $220 million, an increase of $10 million on previous Stella guidance,” he added.
Meanwhile, Stella has continued the global expansion of its retail agency network with the purchase of
The purchase of Global delivers a further 1100 travel agencies to the Stella network, including 650 travel agencies in the Global network and 450 independent travel agents from Worldchoice, another leading consortium that Global has reached agreement to acquire.
The acquisition is expected to add $54 million to Stella Group’s EBITDA over the next three years. Stella Group is now forecasting a full-year EBITDA of at least $280 million for the year ending June 30, 2009, compared to the previous forecast of $262 million EBITDA.
Australian Property Journal
