Flight Centre Travel Group [ASX:FLT] released its FY22 results on Thursday, with FLT shares falling 5%.
Flight Centre, one of the most shorted stocks on the ASX, saw underlying loss after tax shrink 25% to $272.6 million as total transaction value rose 162% to $10.3 billion.
Year to date, FLT shares are down 11%.
Source: www.tradingview.com
Is Flight Centre bouncing back?
Here are the key financial highlights:
- Total transaction volume rose 162% to $10.3 billion
- Revenue rose 154% to $1 billion
- Underlying EBITDA loss shrank 46% to $183.1 million
- Statutory profit after tax shrank 37% to $377.8 million
Source: FLT
More highlights included:
- Global corporate business was profitable for the 2022 financial year, with recovery outperforming the wider industry
- Since travel restrictions were loosened around March, the company has seen an improvement in operating cash flow as more Australians returned to travel
- The company is now also within the $700 million range for liquidity after repaying outstanding debts in the UK
- Customer retention rates were up with accounts for around $2.5 billion in annual spending
- Leisure segments have reached ‘productivity at record highs’ with $750 million in gross online leisure TTV for the year
- TTV and revenue increased 162% to $10.3 billion and 154% to $1 billion, respectively, over the full year
FLT’s CEO Graham Turner stated:
‘It is, of course, early days in the recovery and there is still considerable upside potential. For example, Australian outbound passenger departures tracked at just 35% of pre-COVID levels over the FY22 2H, peaking at 60% in June.
‘There is also some ongoing supply constraints and macro-economic uncertainty, although these factors do not seem to be slowing the recovery at this stage.
‘While the cost of living is generally increasing, very low unemployment globally and travel’s proven resilience are significant offsetting factors for our business, with customers having both the means and the desire to make the most of their limited vacation time after being denied that opportunity for some two years. Corporates also continue to re-engage face-toface to re-establish old business relationships or to create new ones.
‘We will, of course, continue to monitor COVID-19 and the possible incidences and impacts of future strains. While we believe further lockdowns are highly unlikely, there is little visibility around government’s future strategies or intentions.’
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Regards,
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