Qantas books $60m pre-tax profit on part EQUANT sale

Airways Ltd has ■ I announced that it will book a $6O million pre-tax profit on the of its holding in EQUANT NV, an international data network com pany based in the Netherlands. The profit would appear in Qantas’ second half results for the financial year ended June 30, 1999, and it “still has not been finalised” if the profit would be booked as an abnormal.

EQUANT and Societe Internationale de Telecommunications Aeronautiques SC (SITA) are joint venture operators of the world’s largest data communications network. Qantas acquired its EQUANT interest from SITA in 1995 after a restruc ture of SITA’s operations. The disposal of EQUANT shares, in which 30 per cent of the airline’s stake was sold, came as a result of the second public offering of Qantas shares on the New York Stock Exchange and the Paris Bourse in mid-

February. Qantas share sale restrictions had prevented Qantas from selling any further EQUANT shares before July 2000 unless a further public offering occurs.

“In the event of a further public offer ing, Qantas will assess the merits of fur ther asset sales of its shareholding based on conditions at that time,” the airline said. The announcement came two days before Qantas released its interim finan cial results which were generally expect ed to be marginally above the airlines forecast. Cheaper world oil prices, a strong domestic economy, and continued cost cutting are expected to improve the airline’s bottom line, according to market analysts.

As a result, the airline is expected to beat its 1997/98 half year result of $lB3 million and full year result of $305 mil lion. Qantas shares have surged almost 54 per cent since August 31 last year to a high of $4.06 in February. (AAP) ■