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LATEST FINANCIAL ANNOUNCEMENT
Flight Centre Travel Group
(ASX: FLT)
Full Year 2024
24 July 2024
Senior Associate: Theadore Leighton Manjah
FLIGHT CENTRE TRAVEL GROUP AMENDS FY24 GUIDANCE RANGE
FLIGHT Centre Travel Group (FLT) today amended its 2024 fiscal year (FY24) profit guidance.
Based on preliminary trading results for the period, the company expects to deliver:
- Total transaction value (TTV) in the order of $23.7billion, in line with the record FY19 result and a circa $1.7billion year-on-year increase despite significant airfare deflation during the year and in the second half (2H) in particular
- An underlying profit before tax (PBT) between $316million and $324million, circa 130% growth on the prior year (underlying $138.8million* PBT)
- A 1.3%-1.4% underlying profit margin (underlying PBT as a percentage of TTV), a significant improvement on the 0.6% FY23 and 0.94% FY24 1H results; and
- A strong margin runway into FY25, with underlying leisure PBT margin exceeding 2% for the FY24 2H and the corporate business exceeding 2% for the fourth quarter (4Q), as FLT made solid progress towards its group-wide 2% margin target
FLT's amended profit range of $316million to $324million excludes circa $4million in trading losses for the Discova Central Americas (DCA) destination management company, following FLT's decision to close the business (previously flagged as under review) and in line with the company's treatment of its other non-continuing business, wholesaler GoGo.
DCA's losses were not excluded from previous FY24 guidance of $300million to $340million given the business was under review when that guidance was provided. Excluding those $4million in trading losses, previous guidance would have been for a $304million-$344million underlying PBT.
As announced previously, FY24 underlying profit results have been adjusted to exclude the impacts of various non-recurring items, thereby providing a truer reflection of the business's underlying performance and future prospects. These were detailed in FLT's 1H result announcement in February 2024 and in the accompanying table, with the DCA closure the only adjustment that has impacted the previous guidance range issued in February.
The table has also been updated to include impairment (non-cash) and one-off restructuring costs, predominantly related to StudentUniverse, which was subject to an internal review during the FY24 2H and then restructured. As announced previously, StudentUniverse is now part of a specialist online travel agency...