Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — H1 FY2025 Earnings Presentation
49 slides from Flight Centre Travel's earnings presentation, Feb 26, 2025
Slide 1: FLT: FY25 1st Half Result Presentation
FLT: FY25 1st Half Result Presentation February 26, 2025 1 | FLT
Slide 2: Speakers & Presentation Sections
SPEAKERS & PRESENTATION SECTIONS Q&A Greg Parker CEO – Supply Adam Campbell Graham “Skroo” Turner Chris Galanty James Kavanagh CEO – Global Business Global MD & CEO CEO – Corporate CEO – Leisure Services & Global CFO Introduction & Overview Results, Highlights & Outlook Trading & Strategic Update Tr
Slide 3: FY25 1H: Introduction & Overview
F Y 2 5 1 H : I N T R O D U C T I O N & OV E RV I E W Graham Turner • A DI VERS IFIED G LOBAL TRAVEL BUSINESS Americas Four key divisions in four key regions, large leisure and corporate businesses • MI X OF ESTABLIS HED & EMERGING BR ANDS Group earnings driven by 4 businesses that will each generat
Slide 4: FLT: Consistent TTV growth record over 30 years
FY25 1H FLT: Consistent TTV growth record over 30 years FLT Pre-COVID 1H TTV FLT Post-COVID 1H TTV 25.0b 23.7b 14.0b 11.7b 12.0b 11.3b 20.0b 9.9b 10.0b 15.0b 8.0b $ $ 6.0b 10.0b 4.0b 3.3b 5.0b 2.0b 1.5b 1.0b 0.0b 0.0b FY21 FY22 FY23 FY24 FY25 FY98 FY01 FY96 FY97 FY99 FY00 FY02 FY03 FY04 FY05 FY06 FY
Slide 5: FY25 1H: Introduction & Overview
F Y 2 5 1 H : I N T R O D U C T I O N & OV E RV I E W Graham Turner • 1 H G ROWTH ACROS S KEY FINANCIAL METRICS Including TTV, revenue and underlying profit • A TALE OF TWO QUARTERS Tailwinds into the 2H from much stronger 2Q • 1 H M ARGINS STEADY AND SET FO R 2 H GROWTH Increased volumes and scale
Slide 6: Results, Highlights & Outlook
SECTION 2 RESULTS, HIGHLIGHTS & OUTLOOK 6 | FLT
Slide 7: Result Overview
FY25 1H Result Overview TTV growth record extended Earnings uplift while preparing for 11c per share interim • TTV of $11.7b – Circa $365million YoY era of more profitable growth dividend declared growth • $117million underlying PBT achieved – up 7% • Fully franked dividend payable on April • Record
Slide 8: A tale of two contrasting quarters
FY25 1H A tale of two contrasting quarters 1Q 2Q • Marginal improvement across most key metrics • More rapid TTV growth, delivering economics of scale and operating • Patchy/inconsistent trading conditions leverage • Lower than normal TTV growth impacting super over-ride revenue and • 2Q UPBT growth
Slide 9: 6.5% average reduction in adult economy fares (ex Australia)
6.5% average reduction in adult economy fares (ex Australia) FY25 H1 Vs FY24 H1 9 | FLT
Slide 10: Divisional performance summary
FY25 1H Divisional performance summary CORPORATE LEISURE OTHER (51% of Group 1H TTV) (47% of Group 1H TTV) • Circa $4m reduction in 1H losses • Record TTV of $6b - growth in line with market • 7% TTV growth to $5.5b • Stronger results from revenue generating during period of consolidation after very
Slide 11: Segment Results
FY25 1H Segment Results LEI SURE CORPOR AT E OTH ER G ROUP $'m HY2025 HY2024 HY2025 HY2024 HY2025 HY2024 HY2025 HY2024 TTV 5,527 5,167 5,992 5,886 173 275 11,692 11,327 Revenue 654 627 558 542 116 118 1,328 1,287 Underlying PBT 59 59 96 93 (38) (42) 117 109 Underlying EBITDA 104 104 113 114 (24) (27
Slide 12: Balance Sheet
FY25 1H Balance Sheet $'m Cash & cash equivalents Financial assets 31-Dec-24 718 - 30-Jun-24 1,138 10 Mvmt (420) (10) Trade & other receivables 806 885 (79) H IG HL IG HTS Contract assets 340 301 39 Other current assets 176 149 27 • Continued focus on strengthening the balance sheet, including: Curr
Slide 13: Profit & Loss
FY25 1H Profit & Loss $'m Group TTV HY25 11,692 HY24 11,327 Mvmt 365 Mvmt % 3% Operating revenue 1,328 1,287 41 3% H IG HL IG HTS Total revenue 1,328 1,287 41 3% • Both TTV and UPBT increased significantly in 2Q after a softer 1Q: Other income 36 71 (35) (49%) ▪ Corporate TTV up 5% in 2Q (1Q down 1%
Slide 14: Cash Flow
FY25 1H $’m HY25 HY24 Mvmt Operating activities Cash Flow Operating activities before interest and tax Net interest and tax paid (138) (28) 29 (18) (167) (10) Cash flow from operating activities (166) 11 (177) H IG HL IG HTS Investing activities • $165.6million 1H operating cash outflow (FY24 1H: $1
Slide 15: Our Journey to 2%
Our Journey to 2% • All brands & businesses progressing towards tailored internal targets Ongoing company-wide • Leisure & corporate businesses overall targeting 2%+ underlying net margin focus on achieving 2% UPBT Margin Target OU R 2% UPB T M AR GI N TARGE T RE MAI NS IN PATH I N PL AC E BU T WO R
Slide 16: Building blocks in place for stronger 2H
OUT LOOK Building blocks in place for stronger 2H EXECUTING KEY STRATEGIES GOOD MOMENTUM READY TO CAPITALISE ✓ Maintaining cost discipline ✓ Accelerated TTV growth leading to Balance sheet strength ✓ Corporate productive operations improved super over-ride returns & ✓ Cash reserves building now embe
Slide 17: FY25: Guidance maintained
OUT LOOK FY25: Guidance maintained DI VERSI FI ED BU SI NE SS WITH RESI LI ENT C USTOM ER B ASE , WEL L PL ACE D TO ACH I EVE FY 25 TARGE TS FU LL Y EAR PROFI T TARGE T RE AFFIR ME D POSI TIVE EARLY TRE NDS • Continuing to target an UPBT between $365million and $405million for • 2Q momentum continui
Slide 18: FY25: Heavy 2H earnings skew expected
OUT LOOK FY25: Heavy 2H earnings skew expected FLT TY PIC ALLY GE NE RATES THE MAJ ORI TY OF I TS UNDE RLY ING PROFI T DUR ING THE SEC OND H AL F O F A FISC AL Y EAR AS I LLU STR ATE D BY I TS RE SULTS I N TH E TWO MOST RE CE NT C OM PARABLE Y EARS FY19 H2 FY24 H2 70% of UPBT generated 66% of UPBT g
Slide 19: Trading & Strategic Update: Corporate
SECTION 3 TRADING & STRATEGIC UPDATE C O R P O R AT E 19 | FLT
Slide 20: Global Winning Brands | Market Segments
WHERE WE PLAY C O R P O R AT E Global Winning Brands | Market Segments CUSTOMER VALUE PROPOSITION SUPPLIER VALUE PROPOSITION Why are we different? Why are we different? • Exclusive programs/content ENTERPRISE • Combination of local vs. $100M+ spend • The only global alternative to traditional TMCs g
Slide 21: Strategy on a page
C O R P O R AT E Strategy on a page GLOBAL WINNING BRANDS Two globally differentiated winning brands focused on Corporate Traveller is the TMC that’s fanatical about SMEs and delivers FCM is The Alternative TMC for Multi-National Corporates. SME and global multi-nationals Care Uplifted through the p
Slide 22: Growing to win
C O R P O R AT E TTV Recovery as a % of FY19 1H Growing to win 200 150 A MATER IALLY LARGE R BU SINE SS WI TH I NC REASE D 100 GL OBAL M ARKET-SH ARE 50 0 FY21 FY22 FY23 FY24 FY25 TTV Recovery as a % of FY19 1H ✓ 1H TTV and volume growth in line with overall market following period of very rapid org
Slide 23: Segment highlights
C O R P O R AT E Segment highlights TTV by Geography ONG OI NG GROWTH WH I LE LAYI NG STRONGE R FOUNDATI ONS FOR NE W ERA OF M ORE PROFI TABL E EX PANSI ON 12% 30% 27% Geographic Diversity ✓ Larger businesses (Americas, ANZ and EMEA) generally delivering solid results, particularly after 1Q 31% ✓ So
Slide 24: Segment highlights continued
C O R P O R AT E Segment highlights continued ONG OI NG GROWTH WH I LE LAYI NG STRONGE R FOUNDATI ONS FOR NE W ERA OF M ORE PROFI TABL E EX PANSI ON Expansion of Specialist Brands ✓ Successfully targeting specialist sectors ✓ Stage, Screen & Sport eyeing expansion opportunities under a new global le
Slide 25: Mass adoption of Melon & FCM Platform
HOW WE WIN C O R P O R AT E Mass adoption of Melon & FCM Platform New revenue streams by solving customer problems Melon is a one-stop shop for our customers to search, book and Our vision is to be the “Alternative”, the most flexible business travel manage their business travel, allowing CT to impr
Slide 26: Melon Adoption: Growing exponentially
C O R P O R AT E Melon Adoption: Growing exponentially 2024 Calendar Year Growth Active Customers + 65% Monthly Active Users +109% Transactions +182% TTV +164% 26 | FLT
Slide 27: Productive Operations
C O R P O R AT E Productive Operations Building a single global operating system for both brands that drives every activity through the right channel. Lowering costs and growing income while delighting customers through automation and personal service. 01 02 03 Digitisation & Enable Self Service Con
Slide 28: Investing in Artificial Intelligence
C O R P O R AT E Investing in Artificial Intelligence We are dedicated to transforming corporate travel through innovative technologies. Our Flight Centre AI Centre of Excellence (CoE) is at the heart of this transformation. 01 02 03 Customer Products Business Productivity Disruption
Slide 29: Future Growth Drivers
C O R P O R AT E Future Growth Drivers C ONTINU ED O RGANIC SALES GR EATER E FFIC I ENC Y/ GROWTH SC ALE B ENEFI TS • Continuing to reduce costs per transaction • High customer retention rates • Staff numbers now being reduced as operational efficiency • Investment in leading Sales & Marketing Machi
Slide 30: Trading & Strategic Update: Leisure
SECTION 4 TRADING & STRATEGIC UPDATE L EI SU RE 30 | FLT
Slide 31: Positioned to Grow
LEISURE Positioned to Grow WE LL POSI TI ONE D TO G ROW TRANSFORM ED O PE RATING M ODE L Core markets: AU, NZ, RSA New operating model with winning models fueling growth Challenger: US, UK, CA, SG POWERED BY M ULTI CH ANNE L ENAB LED B RANDS PRODU CTI VE RE TAIL FO OTPR INT Ability for customer to b
Slide 32: Segment highlights
LEISURE Segment highlights MORE PRODUCTIVE MORE EFFICIE NT MORE PROFITABLE • Solid TTV growth achieved with similar FTE • UPBT growth rapidly outpacing TTV growth • FY25 1H profit in line with strong prior year workforce to FY24 1H during 2Q result but well above pre-COVID levels • Strong growth in
Slide 33: Business Overview
LEISURE Business Overview FOUR LE ISURE CATEGORIES, OPERATING WITH A LEANER COST BASE & SCALABLE OFFERINGS Mass Market Luxury Specialist Independents Global omni-channel travel The leading network of Specialist brands: Fast growing community retailer famous for flights + luxury travel advisors desig
Slide 34: Ongoing Business Model Shift
Ongoing Business Model Shift Employee Model Online Model Independent Model • Generate the largest share of TTV and continue • Travel products sold through FLT brands • Lower cost (payroll and property costs) vs to be a growth model. including FC.com, BYOJet, Aunt Betty and employee-based models Stud
Slide 35: 35 | FLT
EXPL@RATIONS troducing a reime | @jcruises Alta, Norway perfect place to explore the great {rom Alta Canyon or mmerse in local ing, China The beating heat of china, 2eing ieee te ForGilden Gy Tionarmpen Sacre the Se oe eee Groot Wot t Che Bee) Cape Town, South Africa Dominated by the Inrecise Table
Slide 36: Outlook: Longer Term Objectives
LEISURE Outlook: Longer Term Objectives Global leisure is laser focused on five ”Big Moves” 1 DI FFER ENTIATE FL IG HT C ENTRE Omni Travel Retailer of choice, famous for flights + holidays, backed by expertise 2 LU XU RY TRAVEL Grow collection of brands through organic growth, M&A, partnerships & ev
Slide 37: Differentiating Flight Centre brand
LEISURE Differentiating Flight Centre brand Reinvigorating FLT's earnings powerhouse • Flagship Flight Centre brand capturing c.50% of leisure TTV and delivering strong operating leverage • Ongoing focus on TTV growth in-store, online and via specialist business network to drive further efficiencies
Slide 38: Attachment Strategies Contributing to 12% Basket Size Increase
LEISURE Attachment Strategies Contributing to 12% Basket Size Increase 38 | FLT
Slide 39: Key Drivers
LEISURE Key Drivers SC ALING O UR PORTFO LI O OF DI FFER ENTIATE D WI NNI NG M ODE LS PRODU CTS • Physical expansion (multi-channel growth: stores & teams, • Drive attachment of Ancillary 'travel & service' products online, app, consultants & independent agents) • Create & optimise sales of manufact
Slide 40: Enhanced Digital Capability
LEISURE Enhanced Digital Capability Key Digital Investments Building our brands together on a shared ecosystem of tech-powered products. Key investment in digital capability, and mobility to capture a greater share of wallet, drive customer personalization and support sales growth. Leveraging machin
Slide 41: Closing remarks and recap
C lo si n g re ma rk s an d re c ap: Graham Turner • Pos iti ve out look for 2H - ongoi ng growth achi eved during 1H, wi th s oli d ta ilwinds int o 3Q • Corporat e bus ine ss continuing to de li ve r record s ale s and now eye ing s igni fi ca nt producti vity g ains • AU Lei sure TTV returning to
Slide 42: Thank You
THANK YOU QUESTIONS 42 | FLT FLT’s board of directors has authorized this announcement
Slide 43: Five-year result summary
APPENDI X 1 Five-year result summary $'m December 2024 December 2023 December 2022 December 2021 December 2020 TTV $11,692 $11,327 $9,886 $3,263 $1,533 Revenue margin 11.4% 11.4 % 10.1 % 9.7% 10.4 % EBITDA $178 $219 $77 ($190) ($226) EBITDA (underlying) $193 $191 $95 ($184) ($156) PBT $88 $120 ($17)
Slide 44: FLT's "Other" segment
APPENDI X 2 FLT's "Other" segment Pillars - Underlying PBT HY25 HY24 Other Pillar (38.2) (42.0) Operating businesses • Operating businesses profitable – Discova Asia, touring businesses – along with Avmin (air charter) Operating Businesses (6.6) (7.6) • Pedal Group (cycle joint venture) results impr
Slide 45: Capital Allocation Framework
APPENDI X 3 Capital Allocation Framework Maximising shareholder returns & long-term growth while balancing a conservative capital structure underpins FLT’s capital allocation framework Business • Portfolio growth 2% Underlying PBT reinvestment • Transformation & optimisation margin • M&A opportuniti
Slide 46: $63m 1H capital expenditure
APPENDI X4 $63m 1H capital expenditure ENHANCIN G PRODUCTIVITY, THE CUSTOMER EXPERIE NCE & REDUCING COSTS CIRCA 70% WEIGHTED TOWARDS SYSTEMS/TECHNOLOGY IMPROVEMEN TS Key Focus Areas CORPORATE LEISURE SUPP LY / OTHER • Customer-facing platforms – Melon, • Widest range of content – connections • Helio
Slide 47: Geographic segment results
APPENDI X5 Geographic segment results AU $m ANZ AMERICAS EMEA ASIA OTHER HY2025 HY2024 HY2025 HY2024 HY2025 HY2024 HY2025 HY2024 HY2025 HY2024 TTV 6,467 6,044 2,315 2,384 2,057 2,002 709 754 144 145 Revenue 701 663 243 249 220 219 52 52 112 103 Underlying PBT 119 103 25 21 38 36 (4) 4 (61) (54) Unde
Slide 48: Bridge between statutory & underlying PBT
APPENDI X6 Bridge between statutory & underlying PBT $'000 HY25 HY24 ADJUSTMENTS MADE TO UNDERLYING PBT INCLUDE: Restated* • Buy-back & remeasurement of CBs - no change expected for full Net Profit Before Tax 88,241 120,236 year unless further buy-backs occur Amortisation of Convertible Notes 13,978
Slide 49: Glossary
APPENDI X 7 Glossary ABS Australian Bureau of Statistics 1H First half MoM Month-on-month ABV Average booking value 1Q First quarter NDC New Distribution Capability AI Artificial intelligence EMEA Europe, Middle East & Africa NPAT Net profit after tax Avg Average FCB Flight Centre brand PBT Profit b
Flight Centre Travel Group — H1 FY2025 Earnings Presentation on 6ix