Flight Centre Travel Group (FLT) Company Presentation summary

Trading overview and financial guidance

• FY25 underlying PBT expected between $300m-$335m, aligning with FY24 midpoint; record TTV anticipated, driven by lower-margin leisure businesses.

• Global trading conditions remain inconsistent, with US policy changes and airfare deflation impacting growth, especially in March and April.

• Short-term travel pattern shifts, including an 11% drop in US visitor arrivals in March 2025, are affecting results.

• Up to $200m on-market share buy-back announced to reduce shares on issue and support EPS growth.

Segment performance and operational factors

• Corporate segment on track for record TTV in a flat market, with strong account wins and high retention.

• Leisure profit ahead of prior year and pre-COVID levels, but growth led by lower-margin businesses.

• StudentUniverse expected to lose up to $10m; review underway.

• Asia region faces challenges in FY25 but expects a turnaround in FY26 after system improvements and investments.

• Small improvement in other segment losses, offset by increased investment in TP Connects.

Strategic initiatives and investments

• Significant investments in technology, infrastructure, and resourcing to drive future profitable growth.

• Corporate productivity initiatives target a 15-20% uplift by FY26, with digitisation and proprietary tools like Melon SME.

• Leisure sector investments include cruise network expansion and growth in independent agent/agency and Travel Money businesses.

• Artificial intelligence initiatives focus on customer experience, hyper-personalisation, and productivity.

• TP Connects airfare aggregation business receives $25m investment to enhance capabilities and external revenue.