Flight Centre Travel Group (FLT) H2 2024 earnings summary

Executive summary

• Achieved record TTV of AUD 23.74 billion, up 10% year-over-year in both corporate and leisure segments, despite airfare deflation and industry-wide lower growth rates in corporate travel.

• Underlying PBT reached AUD 320 million, up 131%, at the midpoint of guidance, reflecting strong returns and improved key metrics.

• Maintained significant productivity gains and cost discipline, with operating cost base 15% below 2019 levels and further margin improvement opportunities.

• Strategic closures and restructures of underperforming businesses, with expected reduction in related losses in FY 2025.

• Strong balance sheet with cash and investments exceeding AUD 1.16 billion and operating cash inflows of AUD 421 million.

Financial highlights

• Revenue grew 19% to AUD 2.71 billion, with revenue margin up 100 basis points to 11.4%.

• Corporate PBT of AUD 211 million, up 44% year-over-year, with record profit for Corporate Traveller.

• Leisure profit more than doubled, with revenue margin up 110 basis points and net margin at 1.7% for the year, exceeding 2% in the second half.

• Head office costs reduced from AUD 74 million to under AUD 60 million.

• 41% of incremental revenue growth converted to underlying EBITDA.

Outlook and guidance

• Targeting a sustainable 2% PBT margin, with both corporate and leisure divisions aiming for 2.2%-2.3% for the full year.

• Expecting seasonally softer first half in FY 2025, but aiming for improvement over the prior year.

• Ongoing focus on profitable growth, innovation, and efficiency, with continued investment in people, technology, and new shop openings.

• Initial trading for FY 2025 is positive, with TTV and PBT exceeding the same period in 2024; guidance to be provided at the AGM in November.

• CapEx guidance of AUD 100 million for FY 2025, with 75% allocated to technology and the remainder to physical shop growth.