Flight Centre (ASX:FLT) Travel Group Ltd (ASX: FLT) is experiencing a notable increase in its share price, which has risen nearly 4% to $20.06 in morning trading. This boost follows the release of the company’s impressive FY 2024 results.
Key Financial Highlights
Flight Centre’s FY 2024 performance demonstrates substantial growth across several metrics:
- Total Transaction Value (TTV): Increased by 8% to a record $23.74 billion.
- Revenue Margin: Rose by 100 basis points to 11.4%.
- Operating Revenue: Up 19% to $2.71 billion.
- Underlying EBITDA: Grew by 58% to $478 million.
- Underlying Profit Before Tax: Surged 130% to $320 million.
- Dividends Per Share: Increased by 122% to 40 cents per share.
Performance Overview
For the year ending June 30, Flight Centre achieved a record TTV of $23.74 billion, driven by significant growth in both leisure and corporate travel sectors. The company’s operating revenue saw a strong increase of 19%, fueled by a higher revenue margin of 11.4%. This margin improvement was supported by stable supplier margins and strategic efforts to enhance revenue streams and product offerings.
The company’s underlying profit before tax reached $320 million, marking a significant 130% rise from the previous year and aligning closely with the company’s guidance. Reflecting this robust performance, Flight Centre’s board declared a fully franked final dividend of 30 cents per share, bringing the total dividends for FY 2024 to 40 cents per share.
Management Insights
Graham Turner, Flight Centre’s managing director, highlighted the company’s resilience in a challenging economic and geopolitical environment. He noted that the business not only grew but also surpassed its previous record result from FY 2019, despite a leaner workforce and lower cost base. Turner acknowledged the impact of deflationary airfare trends, which saw international economy fares decrease globally by 6% and by 13% in Australia during the second half of the year. He views this trend as a positive development, making travel more affordable and likely boosting volume growth.
Looking Ahead
Flight Centre is optimistic about its prospects for FY 2025. The company is well-positioned to leverage growth opportunities in a more normalized market environment, supported by its strong brand network, robust balance sheet, and improving margin profile. Additionally, Australian international ticket sales rose by 18% in July, even as average economy fares decreased by 5% compared to July 2023.