Flight Centre Travel Group Limited (ASX:FLT) Releases Half-Year Results
Financial Performance
Flight Centre Travel Group Limited reported a $117 million underlying profit before tax (UPBT) for the first half of FY25, marking a 7% year-on-year increase. Total transaction value (TTV) grew by 3% to $11.7 billion, driven by strong performances in both corporate and leisure segments.
Profitability and Margins
UPBT margin in Australia was above 2.3% in January, with further improvements expected. Revenue as a percentage of TTV remained steady at 11.4%, while underlying costs were maintained at 9.9%.
Dividend Declaration
The board declared an 11-cent fully franked interim dividend, up 10% from 10 cents per share, payable on April 17.
Corporate and Leisure Business
The corporate segment achieved a record $6 billion TTV and is targeting a 15-20% productivity uplift by FY26 through AI and other initiatives. The leisure business became more productive and efficient post-COVID, now accounting for approximately half of leisure TTV, supported by acquisitions and AI-driven tools enhancing booking experiences.
Guidance
Flight Centre reaffirmed its guidance, targeting a UPBT between $365 million and $405 million for FY25, with expectations of a heavy profit weighting in the second half.
Executive Comments
CEO Graham Turner stated, “The 1H was a tale of two quarters in that 2Q TTV and profit growth rebounded after a challenging 1Q, providing good operating leverage and momentum ahead of our key trading months.” He added, “We are focussed on our FY25 goal of a 14% to 26.5% UPBT uplift and believe growth of this magnitude – $45 million to $85 million – will be a solid achievement.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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