Investors keen to see VBA's new product
From AAP
SYDNEY, Feb 22 AAP - Travellers and investors alike hope chief executive John Borghetti sheds more light on Virgin Blue Holdings Ltd's new products beyond the confirmed new uniform when he delivers the airline's half year results on Wednesday.
The airline group, comprising Virgin Blue, Polynesian Blue, Pacific Blue and V Australia, has foreshadowed - through an earnings downgrade last month - that first half profit would be weaker due to the effect of the Queensland floods and weak consumer sentiment.
Hence, with little surprise expected from the financial numbers, much interest is expected to centre on whether Mr Borghetti will reveal more details on his strategy to capture a greater share of corporate travellers.
The Virgin Blue boss could unveil Virgin Blue's new domestic business class product, an alliance with an Asian carrier, new routes and even a new name for the airline group.
Or potentially, none of the above.
What is known is that cabin crew will start wearing new uniforms from Wednesday.
The new outfits, designed by Project Runway winner Juli Grbac, will be presented to the public for the first time during a fashion show featuring supermodel Elle Macpherson at a Sydney CBD shopping centre.
Net profit for the six months to December 31, was expected to come in at $27 million, according to the median of five analysts' forecasts gathered by AAP.
If the result prints in line with consensus, it would represent a 57 per cent decline from net profit of $62.5 million in the first half of 2009/10.
Company guidance, issued last month was for net profit of between $23 million and $26 million. It was the third earnings downgrade since May last year.
"The extent of this impact on revenue cannot be accurately estimated at this time, but could be up to $40 million," Virgin Blue said on January 25.
In terms of underlying profit before tax - the company's preferred measure - Virgin Blue said in January it expected the first half result to be between $70 million and $75 million, compared with the prior year's $75.6 million.
The market consensus for underlying profit before tax is $73 million.
"In terms of short-term financial performance, we expect 2H11 (second half of fiscal 2011) to be of greater significance, given rising fuel prices and continued yield pressure in the domestic leisure segment," JP Morgan analysts Scott Carroll and Paul Huxford said in a research note dated February 2.
Virgin Blue closed down one cent at 38.5 cents on Wednesday.