Flight Centre Travel Group (FLT) H1 2025 earnings summary

Executive summary

• Achieved 1H FY25 TTV of $11.7b, up 3.2% year-over-year, with record corporate ($6b) and leisure ($5.5b) contributions and strong international ticket growth in Australia.

• Underlying profit before tax for 1H FY25 was $117m, up 7% year-over-year, with strong Q2 momentum and improved exit rate into H2.

• Statutory profit before tax fell 26.6% to $88m, mainly due to lower gains on convertible note buy-backs.

• Interim dividend of 11c per share declared, 10% higher than 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 and digital investments.

Financial highlights

• Revenue increased 3.2% year-over-year to $1,328m for 1H FY25; group revenue margin steady at 11.4%.

• Underlying EBITDA was $193m, up 0.8%; underlying PBT up 7% to $117m; statutory PBT down 27% to $88m.

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

• Net cash outflow from operating activities was $165.6m, driven by airline payment cycle timing; $245m inflow in January 2025.

• Net tangible asset backing per share improved to $(1.01) from $(1.23) in the prior year.

Outlook and guidance

• FY25 underlying PBT guidance reaffirmed at $365m–$405m, tracking toward low-mid range, with earnings expected to be heavily 2H-weighted.

• 2H 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.