Flight Centre Travel Group (FLT) H1 2025 earnings summary

Executive summary

• Achieved underlying profit before tax (UPBT) of $117m for 1H FY25, up 7% year-over-year, with a strong Q2 rebound and improved exit rate into the seasonally stronger 2H.

• Total transaction value (TTV) reached $11.7b, up 3.2% year-over-year, with record contributions from both corporate ($6b) and leisure ($5.5b) segments.

• Interim dividend of 11c per share declared, up 10% from the prior year, fully franked, representing 31% of underlying NPAT.

• Corporate and leisure divisions are more productive and profitable than pre-COVID, supported by cost discipline, efficiency gains, and digital investments.

• Investments in AI, cruise sector, and productivity initiatives are expected to drive a 15–20% productivity uplift by FY26.

Financial highlights

• Revenue increased 3.2% year-over-year to $1.33b for 1H FY25; revenue margin held steady at 11.4%.

• Underlying EBITDA was $193m, up 1% year-over-year; statutory EBITDA fell 18.7% to $178.2m.

• Statutory PBT fell 27% to $88m due to lower gains on convertible note buy-backs; underlying PBT up 7% to $117m.

• EPS down 31% to 27.4c; underlying EPS up 1.4% to 36.1c.

• Net cash outflow from operating activities was $166m in 1H, driven by airline payment cycle timing; $245m inflow in January 2025.

Outlook and guidance

• FY25 UPBT guidance reaffirmed at $365m–$405m, representing 14–26.5% growth over FY24, tracking toward the low-mid range.

• 2H is expected to be stronger due to seasonality, TTV growth, margin recovery, and productivity gains.

• Not expecting to reach the 2% UPBT margin target in FY25, but remains a medium-term goal.

• Positive early 2H trends: record profit for Scott Dunn, record Australian leisure TTV, and 19% TTV growth in US SME market in January.

• Anticipated market growth supported by IATA's forecast of a 6.7% global passenger increase in 2025.