The Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus after the company reported a 4% rise in underlying profit before tax to $124.6 million for the first half, with record total transaction value (TTV) and a 9% boost to underlying EBITDA.
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What did Flight Centre Travel Group report?
- First-half TTV reached a record $12.5 billion, up 7%
- Revenue increased 6% to $1.41 billion
- Underlying profit before tax (UPBT) was $125 million, up 4%
- Underlying EBITDA rose 9% to $213 million
- Fully franked interim dividend of 12 cents per share, up 9%
- Group-wide productivity hit new highs, with TTV per full-time employee up 13%
What else do investors need to know?
Flight Centre's corporate division delivered another record first-half, with efficiency programs boosting UPBT by 20% from just 6% TTV growth. Corporate Traveller and FCM brands both contributed, and new digital services including MelonPay and AI innovation are being rolled out.
In leisure, TTV grew 10% and the business reported improving profitability. The World360 Rewards program is gaining early traction, particularly with younger travellers, while acquisitions such as Iglu and Scott Dunn are driving growth in cruise and luxury travel respectively.
Ongoing investment in AI is helping automation and consultant productivity. The company processed over 8 million customer emails using AI, saving an estimated 67,000 hours for staff and customers alike.
What did Flight Centre Travel Group management say?
Managing Director Graham Turner said:
Our results reflect our global model's strength and our brands' enduring value as we continue to evolve…Despite challenging conditions, demand remains resilient and we're using our scale, people and technology to capture a growing market.
What's next for Flight Centre Travel Group?
Flight Centre reaffirmed full-year UPBT guidance between $315 million and $350 million, aiming for up to 15% growth on last year. The company expects stronger second-half profits, helped by leisure seasonality, new acquisitions, and cost and efficiency improvements.
Investments in technology and AI are set to continue, with $85 million in capex targeted for the year, especially toward digital tools. The business sees opportunities to further expand into emerging travel segments and leverage its loyalty programs to deepen customer relationships.
Flight Centre Travel Group share price snapshot
Over the past 12 months, the Flight Centre Travel Group shares have declined 25%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
