Flight Centre Travel Group releases its full-year FY24 results to the ASX
Flight Centre Travel Group (ASX:FLT) has issued its full year results for FY24 to the Australian Securities Exchange. Please click here for the full announcement.
Flight Centre Travel Group has delivered a AU$320 million underlying PBT for 2024 fiscal year (FY24) – the result is a 131 per cent increase on the AU$139 million FY23 and is at the mid-point of FLT’s guidance range.
Total Transaction Value (TTV) reached a record AU$23.74 billion, slightly above the AU$23.7 billion FY19 result and a circa AU$1.8 billion year on year increase, with both corporate and leisure businesses delivering more than AU$1 billion year on year growth, and corporate achieving another record.
FLT’s global corporate business delivered a 44 per cent underlying PBT increase to AU$211 million, with Corporate Traveller contributing a record profit.
Corporate TTV increased by 10 per cent to a record AU$12.1 billion, as the business finished the year about 35 per cent larger than FY19 in a sector that has only recovered to circa 80 per cent of the pre-pandemic activity levels (Source: MIDT).
Comments by Bertrand Saillet, Asia Managing Director, FCM Travel:
“FY24 was a record-breaking year for FCM Travel in Asia, in both TTV and profit levels, driven by strong performance across Southeast Asia and India. Southeast Asia’s consolidated partnerships with our airline partners have yielded greater productivity.
“FCM Meetings & Events India experienced significant double-digit growth, marked by consistent market share and profitability increases.
“They were also awarded India’s Top 100 Great Mid-size Workplaces 2024 and the Best in Professional Services by Great Places to Work®. We believe that our employees are our greatest asset, and this recognition reaffirms our commitment to creating a strong ecosystem for everyone to thrive.
“Our “glocal” capabilities have continued to ensure our success in North Asia. Investing in the corporate-specific AI Centre of Excellence for productive operations has led to substantial growth in profitability through digital transformation in Greater China.
“Corporate travel continues to be a critical facet for businesses as they look to survive, thrive, and grow at home and abroad. There’s no question that businesses see travel as a non-discretionary spend.
“FY25 looks encouraging with strong customer wins and a high customer retention rate. As business travel is projected to increase, we’re strategically expanding into new markets. We’ve invested in having the best-in-class technology and people to serve the business travel and MICE industry.”
Comments by Chris Galanty, Global Corporate CEO, Flight Centre Travel Group:
“It’s been a robust year for the corporate pillar of the Flight Centre Travel Group with our flagship brands of Corporate Traveller and FCM Travel delivering record Total Transaction Value in a sector that has only recovered to circa 80 per cent of pre-COVID transaction volumes.
“This result has been driven by high customer retention rates and a large pipeline of new account wins, some of which have yet to be fully implemented, so we’ll see the benefits of these flow over the coming months once they begin trading.
“FCM Travel transaction volumes rose by 10 per cent year on year as the business continues to win and service large multi-national and enterprise-level accounts, while Corporate Traveller delivered a record profit globally, alongside winning managed and unmanaged SME and start-up accounts.
“Our blend of exceptional people and innovative technology continues to set us apart with both dedicated travel consultants and managers joining forces with the mass adoption of Corporate Traveller’s Melon online booking tool in the Northern Hemisphere and FCM Platform globally.
“We’ve continued to invest, and this year saw us launch our global corporate-specific AI Centre of Excellence that’s revolutionising customer service, empowering our agents through smart automation, and is a key driver as we remain on track to deliver our Productive Operations project.
“We’ve also spent a lot of time in understanding the pain points of our customers and we’ve made significant investments to solve these problems – this has since allowed us to generate new revenue streams – meaning that we ultimately stay ahead of the curve.
“We’ve done an excellent job in building a solid foundation of stability, and as recent global industry-wide issues have proved, it always pays to have a travel management company on your side.
“The corporate arm of the Flight Centre Travel Group is a materially larger business than pre-COVID and we’re energised by the progress we’ve made in the Grow to Win space - and will continue to make - in productive operations in Flight Centre Travel Group’s journey to becoming a two per cent margin business.