Travelodge profit falls again

Press, Volume CXIII, Issue 38183, 24 March 1973, Page 13

Travelodge profit falls again

(N.Z. Press Association—Copyright) SYDNEY, March 23. Australia’s largest motel group, Travelodge Australia, Ltd, has passed its interim dividend after a fall of 33 per cent in group net profit for the half-year to December 31.

The company’s profit has fallen in the last three halfyear periods. The 1971-72 year’s profit was $817,000 — a 30.5 per cent fall — and the normal 8.5 per cent final dividend was passed. The latest half-year profit has been qualified by the company’s auditors. I

The qualification stems from Travelodge’s practice of calculating net earnings without allowing for depreciation on buildings. In passing the interim dividend, the directors say in the interim report that they will await the full year’s results before considering the payment of a dividend. Despite the dramatic fall in net profit for the half-year, the directors expect the result for the full year to be “comparable” to that of 1972.

Travelodge’s development programme continues to be balanced between projects, inside and outside Australia.

Motels are being constructed at Queenstown (New Zealand) and Tahiti. In Australia, building is proceeding at Darwin and Camperdown, New South Wales.

The company has recently linked with the Mitsubishi Corporation of Japan, to develop the Travelodge system throughout Japan.