Flight Centre Travel Group (FLT) H2 2024 earnings summary

Executive summary

• Achieved record TTV of AUD 23.74 billion, up 10% year-over-year, with strong growth in both corporate and leisure segments despite airfare deflation and a slower second half.

• Underlying PBT rose 131% to AUD 320 million, at the midpoint of guidance, with statutory PBT up 212% to AUD 220 million.

• Productivity gains achieved with record TTV using 63% of FY19 workforce and operating cost base 15% below 2019 levels.

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

• Strong balance sheet with cash exceeding AUD 1.1 billion and record operating cash inflows of AUD 421 million.

Financial highlights

• Revenue increased 19% to AUD 2.71 billion, outpacing TTV growth and driving a 100bps revenue margin improvement to 11.4%.

• Corporate PBT up 44% to AUD 211 million; leisure PBT more than doubled to AUD 188 million.

• Net margin improved to 1.35%, progressing toward the 2% target.

• 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 in FY25, with both corporate and leisure divisions aiming for 2.2%-2.3%.

• CapEx guidance of AUD 100 million for FY25, with 75% allocated to technology and systems.

• Initial FY25 trading is positive, with TTV and PBT exceeding the same period in 2024; guidance to be provided at the AGM in November.

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

• Expects travel industry to return to 4-5% global growth; early FY25 trading shows solid momentum.