FY25 Half Year Results Release (inc guidance commentary)
| Stock | Flight Centre Travel Group Ltd (FLT.ASX) |
|---|---|
| Release Time | 26 Feb 2025, 8:17 a.m. |
| Price Sensitive | Yes |
FY25 Half Year Results Release (inc guidance commentary)
- Growth across key financial metrics
- Solid 2Q recovery after challenging 1Q
- Margins steady and set for 2H growth
Flight Centre Travel Group (FLT) has achieved a $117million underlying profit before tax (UPBT) for the 2025 fiscal year (FY25) first half (1H). The result represents 7% year-on-year (YoY) growth and reflects a solid second quarter (2Q) rebound after a challenging 1Q. 2Q UPBT increased about 14% - well above the 2% 1Q growth rate - delivering a strong 1H exit rate into the 2H, FLT's peak trading period. Statutory PBT was $88.2million (FY24 1H: $120.2million), with the YoY movement largely reflecting materially higher FY24 gains on the buy-back and remeasurement of convertible notes (CNs). UPBT growth was achieved during a period of investment in initiatives geared towards delivering sustainable profit growth after rapid recovery post-COVID, such as increased investment in Artificial Intelligence (AI) to deliver new customer products, enhance productivity, and create disruptive new offerings. Group-wide, TTV increased by $365million to $11.7billion as FLT delivered YoY 1H TTV growth for the 28th time in 30 years since listing. This included a record $6billion contribution from the corporate business and a $5.5billion contribution from the global leisure business. FLT's directors today declared a fully franked 11 cents per share interim dividend, payable on April 17 to shareholders registered on March 27 (FY24 1H:10 cents per share).
FLT continues to target an UPBT between $365million and $405million for FY25 (FY24: $320million) and is currently tracking towards the low-mid section of the range, ahead of its seasonally busiest trading months.
FLT is well placed to benefit from anticipated market growth, with IATA projecting a 6.7% passenger increase globally during the 2025 calendar year. International air capacity is also set for further growth in Australia, with the Australian Competition & Consumer Commission (ACCC) last week issuing a draft determination in favour of the proposed Virgin Australia and Qatar Airways tie-up.