FLIGHT CENTRE TRAVEL GROUP LIMITED (FLT)
28 August 2024
FY24 APPENDIX 4E AND ANNUAL REPORT
Please find attached for release to the market, copies of Flight Centre Travel Group Limited's final:
• Appendix 4E for the year ended 30 June 2024; and
• 2024 Annual Report (including the Directors' Report, the Financial Report, the Directors' Declaration and the
Audit Report)
ASX ANNOUNCEMENT
APPENDIX 4E 2024 FLIGHT CENTRE TRAVEL GROUP
1
RESULTS FOR ANNOUNCEMENT TO THE MARKET
RESULTS IN BRIEF
JUNE 2024
JUNE 2023
RESTATED3
CHANGE
CHANGE
$'000
$'000
$'000
%
Total transaction value (TTV)¹
23,744,461
21,938,594
1,805,867
8.2%
Revenue
2,710,748
2,280,782
429,966
18.9%
EBITDA²
422,559
266,152
156,407
58.8%
Statutory profit before income tax
219,708
70,459
149,249
211.8%
Statutory profit after income tax
139,155
47,412
91,743
193.5%
Statutory profit attributable to company owners
139,638
47,461
92,177
194.2%
Underlying EBITDA²
478,462
301,645
176,817
58.6%
Underlying profit before tax²˒³
320,385
138,829
181,556
130.8%
Underlying profit after tax²˒³
229,612
108,605
121,007
111.4%
1 TTV is non-IFRS financial information and is not subject to audit procedures, and does not represent revenue in accordance with Australian Accounting Standards. TTV
represents the price at which travel products and services have been sold across the group’s various operations, both as agent for various airlines and other service
providers and as principal, plus revenue and other income from other sources. TTV has been reduced by refunds. FLT’s revenue is, therefore, derived from TTV.
2 EBITDA, Underlying EBITDA, Underlying profit before tax (PBT) and Underlying profit after tax (PAT) are unaudited, non-IFRS measures. Refer to table below for
reconciliation of statutory to underlying results.
3 Amortisation of convertible notes has been included as an underlying adjustment in the current period, with prior period comparative amounts restated including
associated tax effect.
DIVIDENDS
AMOUNT PER
SECURITY
CENTS
100% FRANKED
AMOUNT
CENTS
30 JUNE 2024
Interim dividend4
10.0c
10.0c
Final dividend5
30.0c
30.0c
30 JUNE 2023
Final dividend
18.0 c
18.0 c
4 On 28 February 2024, FLT declared an interim dividend out of FY24 profits. The record date for determining entitlement to the dividend was 27 March 2024 and payment
date was 17 April 2024.
5 On 28 August 2024, FLT declared a final dividend out of FY24 profits. The record date for determining entitlement to the dividend was 19 September 2024 and payment
date is 17 October 2024 .
NET TANGIBLE ASSETS
JUNE 2024
JUNE 2023
$
$
Net tangible asset backing per ordinary security6
(0.85)
(1.48)
6 The current year and prior year net tangible asset backing per ordinary security balances include the value of leased assets as recognised under AASB 16 Leases.
DETAILS OF JOINT VENTURES AND ASSOCIATES
INVESTMENTS IN JOINT VENTURES
2024
2023
Pedal Group Pty Ltd (Pedal)
46.8 %
46.9 %
During the period, FLT did not receive a dividend. In 2023, $3,937,131 was received, of which 100% was received as shares
as part of the Pedal dividend reinvestment plan. FLT continues to have joint control.
INVESTMENTS IN ASSOCIATES
2024
2023
Evolve Travel Limited
50.0 %
50.0 %
APPENDIX 4E
APPENDIX 4E 2024 FLIGHT CENTRE TRAVEL GROUP
2
UNDERLYING ADJUSTMENTS
Reconciliation of statutory to underlying profit before tax and after tax provided below:
JUNE 2024
JUNE 2023
RESTATED5
$'000
$'000
EBITDA¹
422,559
266,152
Depreciation and amortisation
(159,326)
(142,093)
Interest income
36,373
31,195
Interest expense
(79,898)
(84,795)
Statutory profit before income tax
219,708
70,459
Reconciliation of EBITDA to Underlying EBITDA
EBITDA¹
422,559
266,152
SU Impairment (non-cash), other restructuring costs and other head office lease
impairment
49,355
—
US Wholesale (GoGo) trading loss & closure costs2
17,207
—
Discova Americas trading loss & closure costs3
9,998
—
Employee retention plans
9,537
29,757
Productive Operations initiative4
7,105
—
Gain on buy-back and remeasurement of convertible notes
(48,022)
—
Supplier loss
10,723
—
Acquisition transaction costs - Scott Dunn
—
6,065
COVID-19 ROUA impairment / (reversal)
—
(329)
Underlying EBITDA¹
478,462
301,645
Amortisation of convertible notes
30,816
32,877
Productive Operations initiative4
12,046
—
Discova Americas trading loss & closure costs3
1,561
—
US Wholesale (GoGo) trading loss & closure costs2
351
—
Total underlying adjustments
100,677
68,370
Underlying profit before tax1,5
320,385
138,829
Statutory income tax expense
(80,553)
(23,047)
Underlying adjustments associated tax effect
(10,220)
(7,177)
Underlying profit after tax¹
229,612
108,605
1 EBITDA, underlying EBITDA, underlying PBT, underlying PAT are unaudited, non-IFRS measures.
2 Closure of US Wholesale business in February 2024.
3 Closure of Discova Americas business in June 2024.
4 Productive Operations initiative is a corporate business transformation project focused on lowering costs and growing income through automation and personal service.
As part of the Productive Operations initiative, FLT has invested in the development of software assets (in-house and software as a service) and these activities will result in
the retirement of certain legacy systems.
5 Amortisation of convertible notes has been included as an underlying adjustment in the current period, with prior period comparative amounts restated including
associated tax effect.
COMPLIANCE STATEMENT
The report is based on the consolidated financial report which has been audited. Refer to the attached full financial report
for all other disclosures in respect of the Appendix 4E.
Signed:
G.F. Turner
Director
28 August 2024
APPENDIX 4E CONTINUED
APPENDIX 4E 2024 FLIGHT CENTRE TRAVEL GROUP
3
ANNUAL
REPORT
2024
Family, village, tribe
Ownership
Brightness
of future
Taking
responsibility
Our People
Our Customers
Egalitarianism
& Unity
Profit we are
proud of
One best way
Reward &
Recognition
We care for our people’s health and wellbeing,
their personal and professional development,
and their financial security.
We believe that work should be challenging and
fun for everyone.
Our supportive work community provides
an inspiring and challenging career path for
committed people. Promotion and transfers
from within will always be our first choice and will
give people the exciting opportunity to move
globally across our company.
We treat the business as our own and have
the opportunity to share in our company’s
financial success with access to shares programs,
outcome based incentives and profit share.
In each of our businesses there is ‘one best way’
to operate globally. We value common sense over
conventional wisdom in running our business. We
foster entrepreneurial thinking to continuously
find better ways to innovate and improve.
Our structure is simple, lean, flat and transparent,
with accessible leaders and minimal layers
between the customer and the CEO. Everyone
belongs to a family (team), which is the most
important group at FCTG, who are supported by
a ‘self-help’ village and a tribe.
A fair margin resulting in a business profit we
can be proud of, is the key measure of whether
we really are providing our customers with an
amazing experience, amazing product and a
caring and respectful service - an experience
customers genuinely value.
We recognise and celebrate our individual
and collective successes with recognition
and rewards which are based on measurable
outcome based quantitative KPI’s. What gets
rewarded gets done is our basic principle and
we reward outcomes not behaviour.
We take full responsibility for our own success or
failures. We do not externalise. We accept that
we have total ownership and responsibility, but
not always control.
We believe that every individual is equally
important and has access to the same
opportunities and rights. We work as a
community with accessible leaders and we
embrace diverse cultures, backgrounds and
perspectives. We have an irreverent culture of
taking our business seriously but not ourselves.
Our customers always have a choice, and we
care about personally delivering amazing travel
experiences to them, whatever it takes.
For FCTG to survive, grow, and prosper,
for generations, we must live by our
Company Purpose, Vision and our
Philosophies. Our culture must be
celebrated and protected, while
being robust and independent, with
the ability to outlive our current and
future leaders.
Our Values
Our Vision: To become the world’s
most exciting and profitable travel
retailer, personally delivering amazing
experiences to our people, our
customers and our partners.
Our Purpose: To open up the world
for those who want to see.
Our Business Model
OUR PHILOSOPHIES
FLIGHT CENTRE TRAVEL GROUP LIMITED
(FLT) CORPORATE DIRECTORY
Directors
Graham Turner
Gary Smith
John Eales
Robert Baker
Colette Garnsey
Kirsty Rankin
Secretary
David Smith
Principal registered office and
place of business in Australia
275 Grey St, South Brisbane QLD 4101
+61 7 3083 0088
ABN 25 003 377 188
Share register
Computershare Investor Services Pty Ltd
200 Mary Street,
Brisbane QLD 4000
+61 7 3237 2100
Auditor
Ernst & Young
111 Eagle Street
Brisbane QLD 4000
Stock exchange listing
FLT shares are listed on the Australian Securities Exchange.
Website address
https://www.fctgl.com/
This financial report covers the consolidated financial
statements for the consolidated entity consisting of FLT
and its subsidiaries. The financial report is presented in
Australian currency.
FLT is a company limited by shares, incorporated and
domiciled in Australia.
A description of the nature of the consolidated entity’s
operations and its principal activities is included in the
review of operations and activities in the directors’ report.
The financial report was authorised for issue by the
directors on 28 August 2024. The directors have the
power to amend and reissue the financial report.
FLT endorses the ASX's Corporate Governance Principles
and Recommendations and complies in all areas, apart
from amalgamating the Remuneration and the Nomination
Committee. Further information on FLT's compliance with
the Corporate Governance Principles and
Recommendations, including FLT’s Corporate Governance
Statement, can be found on the company's website,
https://www.fctgl.com/investors#governance-documents
CONTENTS
Page
Chairman's message ....................................................................
2
FY24 Results & Outlook ...............................................................
4
Directors' Report ...........................................................................
7
Auditor’s independence declaration to the Directors of
Flight Centre Travel Group Limited ...........................................
35
Statement of profit or loss ...........................................................
36
Statement of other comprehensive income .............................
37
Statement of cash flows ...............................................................
38
Balance sheet ................................................................................
39
Statement of changes in equity ..................................................
40
Notes to the financial statements ..............................................
41
Tax Consolidated Entity Report .................................................
118
Directors’ declaration ...................................................................
124
Independent Auditor's Report to the Members of Flight
Centre Travel Group Limited ......................................................
125
Shareholder information ..............................................................
130
Tax Transparency Report (unaudited) ........................................
131
KEY DATES 2024/25
28 August 2024
2023/24 full year results released
19 September 2024
2023/24 final dividend record date
24 September 2024
Director nomination deadline
17 October 2024
2023/24 final dividend
payment date
14 November 2024
Annual General Meeting
26 February 2025*
2024/25 half year results released
27 March 2025*
2024/25 interim dividend record
date
17 April 2025*
2024/25 interim dividend payment
date
* Date is subject to change
1
CHAIRMAN’S MESSAGE
GARY SMITH
I am delighted to share our annual report for the 2024 fiscal
year (FY24) with you, our valued shareholders.
The 12 months to June 30, 2024 - our 29th year as a listed
entity - was another significant period for your company as
we:
• Delivered strong financial results in an improved, but
still volatile trading climate
• Strengthened our balance sheet by using circa
$385million in free cash to repay debt and buy-back
convertible notes (CNs); and
• Developed stronger foundations for the future through
our ongoing investment in key growth drivers -
including our people, our network and the experience
we deliver to our valued customers through our diverse
global brand stable
Our financial results are covered in detail elsewhere in this
report, while Skroo has outlined our key operational
achievements within his column.
From a high-level financial perspective, our strong year-on-
year (YOY) growth meant we regained more of the ground
lost during the COVID years in very important areas, while
also establishing some new milestones. Milestones included
recorded total transaction value (TTV) of $23.74billion, which
narrowly eclipsed our $23.7billion FY19 result, and a record
operating cash inflow of circa $420million.
Recovery is also illustrated by YOY improvement across
other key financial metrics, specifically:
• Margin - revenue and profit
• Profitability - both underlying and statutory and before
and after tax; and
• Shareholder returns, an area that I will focus on in
greater detail in this column, along with People and
Sustainability
ONGOING FOCUS ON IMPROVING SHAREHOLDER
RETURNS
At the start of FY24, we unveiled a new capital management
policy designed to create shareholder value in the short and
long-term by using free cash flow to:
• Re-invest in the business to drive longer term growth
through capital expenditure and, where appropriate,
mergers and acquisitions (M&A); and
• Deliver tangible benefits in both the short and long-
term through a combination of dividend payments and
strategic buy-backs of FLT’s issued capital or CNs to
reduce future dilution and increase earnings per share
Under this policy our ongoing intention is to allocate 50-60%
of net profit after tax (NPAT) to dividends and/or capital
management initiatives, subject of course to the business’s
anticipated needs at the time.
I’m pleased to report that, including the 30 cents per share
FY24 final dividend declared today (August 28), we have
returned 38% of underlying NPAT to shareholders, while
also retaining significant funds for other capital management
activities with the potential to increase future earnings per
share (EPS).
Given our strong FY24 profit growth, EPS increased 176%
from 23.1 cents to 63.7 cents. We also delivered a circa 8%
Total Shareholder Return (TSR), based on total dividends
related to the year of 40 cents per share and our share price
increase from $19.05 to $20.18 during FY24.
As mentioned above, we invested circa $385million in debt
and CN reduction, with $300million used to repay bank debt
and overdrafts (both of which can be redrawn) and
$84million used to buy back CNs with a $75million face
value.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
2
Given our commitment to our capital management policy
and our strong cash generation, evidenced by our record
operating cash inflow, we expect to take further near-term
action to improve our position and our ability to capitalise
on any opportunities that arise.
INVESTING IN OUR PEOPLE
Our people continue to be integral to our success.
Accordingly, we continue to invest significantly in our People
& Culture areas globally and in the overall value proposition
we offer to our employees.
During FY24, we initiated our first truly global engagement
survey in partnership with Great Places to Work (GPTW).
About 65% of our people participated in the research, which
led to FLT receiving GPTW certification in 25 countries and
national recognition on GPTW’s lists in the United Kingdom,
India and Indonesia.
The survey focussed on 25 areas, with FLT typically scoring
highly in the following categories:
• Justice (87%) - employees believe management
promotes inclusive behaviour and avoids
discrimination
• Intimacy (84%) - in essence, they feel they can be
themselves and support each other; and
• Camaraderie (82%) - our people feel they belong to a
community, have the freedom to express themselves
and enjoy their work
Thanks in no small part to our people, our company and our
brands also won numerous awards during the year, including
major honours for our corporate and leisure businesses at
the annual World Travel Awards.
Flight Centre brand, which was judged Most Outstanding
Travel Agency Group at Australia’s 2023 Nation Travel
Industry Awards, was also recently recognised as Australia’s
most trusted travel agent (Source: Roy Morgan Risk Report
2024).
ESG - ENVIRONMENT, SOCIAL & GOVERNANCE
In addition to investing in the key areas of ESG during FY24
(as outlined below), I’m pleased to report that we also
produced and released our second-ever Sustainability
Report. This new report highlights our achievements while
also outlining the targets that we are working towards in
various key areas, and can be accessed via our corporate
website, www.fctgl.com.
From a sustainability governance perspective, we
strengthened our sustainability leadership team, which
includes five members of our global executive team
(taskforce), our global sustainability officer and other senior
leaders with broad representation across our brands and
regions to ensure high-level ownership of this very important
area.
Within the environmental area, Flight Centre brand’s (FCB)
Planting for the Planet program proved to be a great
success story.
This program, which customers can access via FCB’s
Captain’s Pack, comfortably exceeded its FY24 goal of
funding the planting of one million trees in various locations
throughout the world. I recently had the privilege of
witnessing the benefits of this program first-hand in
Morocco, where these trees are supporting more
sustainable livelihoods for farming families.
From a social perspective, we continue to engage our
employees in the work we do in the community. Two key
programs are in place in Australia - workplace giving and
giving grants.
Through workplace giving, our employees have the option
of donating regularly to the Flight Centre Foundation via
monthly pre-tax payroll deductions. FLT covers the
Foundation’s operating costs, meaning all funds donated by
our people are passed through to our charity partners and
grant recipients, and matches all employee donations,
effectively doubling the funds available to support worthy
causes.
In relation to governance, we continue to prepare for the
AASB (Australian Accounting Standards Board) Sustainability
Reporting Standard-Setting Framework to be finalised. In
preparing for the pending disclosures, during FY24 we
published information in our sustainability report aligning
broadly to the draft requirements.
CYBERSECURITY & ARTIFICIAL INTELLIGENCE (AI)
Cybersecurity and data protection remain key areas of focus
and continuous uplift for us and our commitment to
responding to evolving risks has resulted in increasing
investment in these areas.
Our security and data protection programs are driven by our
dedicated in-house teams and bolstered by top-tier external
experts.
We also continue to evaluate ways that we can use AI to
enhance our business and the customer experience.
Accordingly, a number of programs are in place within our
corporate and leisure businesses to augment the service our
people provide.
CONCLUSION
In summary, we enter our 30th year as a listed entity with a
fair degree of confidence, given the progress we have made
in recent years. We are generally recovering well, eyeing
new opportunities and working hard to deliver stronger
shareholder returns in both the short and longer-term.
Importantly, we are also investing in key growth drivers like
our people, network and customer offerings and in other
areas that are critically important to us and our stakeholders,
including ESG and cybersecurity.
Once again, we thank-you for your ongoing support and we
look forward to updating you on our progress during the
course of the year.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
3
FY24 RESULTS & OUTLOOK
GRAHAM TURNER
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
RESULT OVERVIEW
FLIGHT Centre Travel Group (FLT) has delivered a
$320million underlying profit before tax (PBT) for the 2024
fiscal year (FY24).
The result is a 131% increase on the underlying $139million
FY23 result and is at the mid-point of FLT’s guidance range
(underlying PBT between $316million and $324million).
Statutory PBT for the 12 months to June 30 2024 increased
212% to $220million, compared to the $70million result
achieved during the prior corresponding period (PCP).
Underlying FY24 PBT adjustments are listed in Note A1 of the
financial statements.
After tax, FLT delivered a $230million underlying result, 111%
growth on the prior year, and a $139million statutory net
profit after tax (NPAT), up 194% on FY23.
Total transaction value (TTV) reached a record $23.74billion,
slightly above the $23.7billion FY19 result and a circa
$1.8billion year-on-year (YOY) increase, with both the leisure
and corporate businesses delivering more than $1billion YOY
growth and corporate achieving another record.
FLT’s overall TTV growth rate was, however, adversely
affected by:
• Significant airfare deflation, with average international
economy fares sold in Australia during the second half
(2H) 13% cheaper than during the PCP. This deflation
was partially offset by volume growth, with ticket sales
increasing 10% during the same period, and increased
basket sizes in various leisure brands
• Business closures – Together, the Indian wholesale
foreign exchange (FX) business (closed June 30, 2023)
and US-based wholesaler GoGo (closed FY24 2H)
contributed an additional $430million to FY23 TTV. This
was partially offset by Scott Dunn’s additional
$140million FY24 TTV contribution (acquired FY23 2H);
and
• A flat trading climate in the corporate sector globally
late in the year, with industry-wide airfare sales data
(MIDT - Marketing Information Data Transfer) pointing
to minimal 2H volume growth
Group-wide, revenue growth, at 19%, comfortably outpaced
TTV growth, delivering strong revenue margin improvement
to 11.4% (FY23: 10.4%). At the same time, underlying cost
margin (excluding touring cost of sales) was relatively flat at
9.6%.
These positive revenue and cost margin trends, which are
expected to continue, led to significant underlying profit
margin (UPM) improvement to 1.35% (FY23: 0.63%), as FLT
made meaningful progress towards its group-wide 2% target.
Leisure and corporate UPMs exceeded 2% during the 2H and
fourth quarters (4Q) respectively, delivering a strong exit rate
from FY24 into FY25 in both sectors.
FLT’s improved trading performance was reflected in strong
cash generation, highlighted by a record $421million
operating cash inflow.
In light of this strong cash position, almost $450million in
capital management initiatives were undertaken during FY24
as FLT:
• Reduced bank debt by repaying $252million (able to be
redrawn)
• Reduced overdraft facilities by almost $50million (also
able to be redrawn)
• Completed an $84million buy-back to secure
Convertible Notes with a $75million face value; and
• Returned $62million in fully franked dividend payments
to shareholders
In addition, FLT’s directors today declared a fully franked 30
cents per share FY24 final dividend to be paid on October 17,
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
4
2024 to shareholders registered on September 19, 2024. The
total payment of $66million, plus the $22million interim
dividend payment, represents a 38% return of underlying
FY24 NPAT to shareholders and means the company has now
invested more than $500million in capital management
initiatives since the start of FY24.
The company’s strong profit recovery was underpinned by:
• Higher TTV with higher productivity, as FLT topped its
FY19 sales record with 63% of its FY19 workforce, plus
an expanding independent agent and agency network
• Strong leisure and corporate results, with the
businesses delivering underlying PBT growth of 104%
and 44% respectively
• The 100 basis point (bps) YOY revenue margin uplift, as
supplier margins stabilised and strategic initiatives to
develop new revenue streams, increase ancillary sales
and attachment and broaden FLT’s overall product mix
gained traction; and
• Ongoing cost discipline, with expenses about 15%
below pre-COVID levels and steady underlying cost
margins. Various loss-making businesses were also
closed (GoGo and the Discova Central Americas
destination management company) or restructured
(online travel marketplace StudentUniverse and
wholesalers Infinity and The Travel Junction) during the
year
TRADING AND STRATEGIC UPDATE: CORPORATE
FLT’s global corporate business delivered a 44% underlying
PBT increase to $211million, with Corporate Traveller
contributing a record profit.
TTV increased by 10% to a record $12.1billion, as the
business finished the year about 35% larger than FY19 in a
sector that has only recovered to circa 80% of pre-pandemic
activity levels (Source: MIDT).
The corporate business’s success during the past five years
has been underpinned by successful execution of the Grow
to Win strategy, which has delivered organic market-share
growth through large volumes of account wins and high
customer retention.
Accounts with estimated annual spends of $2billion were
secured during FY24, in line with the business’s target and
with a heavier SME weighting (serviced by Corporate
Traveller) than in recent years, when high volume, lower
margin enterprise-level accounts (serviced by FCM) were won
and onboarded.
In a promising sign for the future, Corporate Traveller’s US
wins have accelerated since a new regional structure, built
around key centres in New York, Los Angeles and Chicago,
was introduced. US SME sector wins almost doubled during
the 2H compared to the FY24 1H.
While Grow to Win is an ongoing priority, the business is also
focusing on the Productive Operations initiative to deliver
stronger bottom-line growth in FCM in particular through:
• Digitisation and standardisation of operations
• Enabling customer self service capabilities; and
• Content access and distribution
Productive Operations is in its infancy but is expected to
deliver significant scale benefits given positive early trends
and with the prospect of acceleration after initiatives are
rolled out globally across both FCM and Corporate Traveller.
These scale benefits are set to lead to improved income per
transaction (IPT) and lower costs per transaction (CPT) as
volumes increase – trends that are already emerging.
During FY24, transaction volumes increased 11%, with IPT
increasing by 3% and CPT decreasing by 2%.
Staff numbers at June 30, 2024 were circa 5% lower than at
June 30, 2023, with strong productivity gains and the mass
adoption of proprietary platforms (FCM Platform and
Corporate Traveller’s Melon) helping the business’s people
service a larger customer base.
Staff numbers are currently expected to remain broadly in
line with current levels during FY25, pointing to further
productivity gains as the business continues to grow and as
further efficiencies are realised through Productive
Operations.
TRADING AND STRATEGIC UPDATE: LEISURE
FLT’s global leisure business delivered a 104% underlying
PBT increase to $188million, its strongest result since profits
peaked during FY14.
TTV increased by 10% to $11billion, as all four categories
(Mass Market, Luxury, Specialist and Independent) generated
more than $1billion in annual TTV for the first time.
Together, the Luxury, Independent and Specialist categories
contributed 45% of global leisure TTV, compared to 33%
during FY19, as Horizon 2 (emerging) businesses drove
overall leisure TTV growth.
This is in line with leisure’s new growth blueprint of cost-
effectively capturing sales through a higher performing shop
network and lower cost, highly scalable offerings across other
channels.
Following a major transformation initiated just prior to the
pandemic, the leisure business has re-emerged as a more
profitable, more productive and more efficient operation.
These stronger foundations in a recovering market were
underlined by:
• Overall leisure profit exceeding FY19 by almost 50%
• TTV in Australia, FLT’s largest leisure operation,
exceeding FY19 levels in monthly trading during the 2H
with less than half of the FY19 shop network; and
• A 40bps YOY cost margin improvement driven in part
by productivity gains through better systems and higher
staff retention
The leisure business has also successfully started to rebuild
revenue margin by increasing:
• Higher margin cruise and tour sales across its
established brand portfolio and through new specialist
offerings, including Cruiseabout (re-introduced in May
2024) and MyCruise Touring Collection ($90million of
TTV in its 2nd full year). In Australia, cruise and tour
sales increased by 25% YOY to $1billion
• Flight Centre Brand (FCB) shops globally averaged 2.8
components per booking over the year and almost 3
components for the last 5 months of FY24; and
• Ancillary product sales – FCB’s Captain’s Pack is now
being attached to 65% of in-store sales globally
Further margin and product benefits are expected to flow
from the new travel insurance agreement with Europ
Assistance, which comes into effect late in the FY25 1H.
The leisure business continues to invest significantly in
enhancing the customer experience through new digital
capabilities, careful use of AI to support the company’s
people offerings and through new brands and products,
including flights from Anywhere 2 Anywhere on
flightcentre.com. In another promising sign for the future,
brands and products in their first or second years generated
circa $800million in TTV during FY24.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
5
CONTINUING TO TARGET A 2% UPM
FLT continues to focus on achieving its 2% UPM target within
its FY25 “stretch” timeframe, but will balance this against its
over-arching objective of delivering sustainable long-term
value for shareholders.
Since the target was set during the pandemic, the company
has made solid progress by:
• Increasing revenue margin by 170bps during the past
two years
• Maintaining a structurally lower cost base, with an
underlying cost margin materially lower than FY19 and
with opportunities for further improvement
• Closing or restructuring loss-making or under-
performing businesses
• Transforming the leisure business into a more
productive, more efficient and more profitable
operation than it was than pre-COVID
• Rapidly expanding its leading global corporate business
and now focusing on stronger bottom-line growth
through Productive Operations; and
• Decreasing “Other” segment losses
As mentioned previously, FLT also has strong momentum,
given the leisure and corporate businesses’ FY24 UPM exit
rates of above 2%.
Business mix is, however, a significant near-term headwind,
given rapid growth in lower margin businesses that are
gaining scale and becoming significant profit generators.
Together, these businesses delivered circa 15% YOY TTV
growth during FY24, compared to circa 5% TTV growth in the
higher margin businesses.
FLT considers these businesses, which include FX business
Travel Money, FCM and Envoyage (independent), key future
growth drivers and, accordingly, will continue to invest in
them, with a view to delivering a sustainable margin as the
business grows and evolves.
The company will not risk future prosperity by abandoning or
slowing growth in:
• Strategic investments with sub optimal margins while
they start-up or scale up
• Profitable, but lower margin businesses with solid future
growth prospects; or
• Non-financial assets – people, customers and supply
chain
FY25 OUTLOOK
FLT will again invest significantly in its people, diversified
brand network and systems during FY25.
Capital expenditure is expected to reach $100milllion, with
about 75% to be invested in technology and systems. This will
include further investment in Productive Operations, airfare
aggregation (TP Connects), omni channel and digital
capabilities in leisure and a new Human Resources
Information System (HRIS).
FLT plans to open about 35 new leisure travel shops globally,
including 18 Travel Money outlets as the FX business
continues to perform strongly in both retail and wholesale.
In terms of market conditions, cost of living pressures have
curbed discretionary spending but travel has generally out-
performed other sectors – again underlining its resilience.
Historically, this resilience has been reflected in strong and
consistent growth in various key metrics, including short-term
resident departures (STRD) in Australia. Based on Australian
Bureau of Statistics data, STRD increased at a 5.9%
compound annual growth rate over 40 years before travel
was shutdown globally during FY20.
FLT expects the travel industry to a return to normal growth
levels of 4-5% globally this year and is well placed to
capitalise on opportunities in this expanding market given its:
• Proven ability to grow, as evidenced by 37 years of
record TTV in its 42-year history
• Diversified portfolio of brands with strong customer
value propositions
• Strong results and strategic execution in both the
corporate and leisure sectors, which is delivering an
improved overall margin profile
• Balance sheet strength;
• Solid momentum, based on very early FY25 trading; and
• Potential economic tailwinds, including high interest
rates, which has helped fuel demand among older
demographics and delivered stronger returns on FLT’s
large cash float, relatively low unemployment globally
and significant airfare deflation, which has started to
drive volume growth
In Australia, international ticket sales increased 18% in July
2024 as average economy fares decreased by 4% compared
to July 2023. This deflation followed significant airfare price
reductions throughout FY24 and at a higher rate during the
2H, as outlined previously.
Corporate travel transaction volumes also increased by 11%
globally during July 2024 (compared to July 2023).
FLT will provide more comprehensive FY25 market guidance
at its Annual General Meeting on November 14, 2024.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
6
Your directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Flight Centre
Travel Group Limited (FLT) and the entities it controlled at the end of, or during, the year ended 30 June 2024.
PRINCIPAL ACTIVITIES
The group’s principal continuing activities consisted of leisure travel retailing and corporate travel management, plus in-
destination travel experience businesses including tour operations, hotel management, destination management companies
(DMCs) and wholesaling.
There were no significant changes in the nature of the group’s activities during the year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There was no significant change in the group’s state of affairs during the year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Information on likely developments in the group’s operations and the expected results of operations has been included in
the FY24 Results & Outlook column on page 4.
DIVIDENDS – FLIGHT CENTRE TRAVEL GROUP LIMITED
Dividends paid to members during the financial year were as follows:
2024
2023
ORDINARY SHARES
$'000
$'000
Final ordinary dividend for the year ended 30 June 2023 of 18.0 c cents (2022:
0.0 cents) per fully paid share
39,491
—
Interim ordinary dividend for the year ended 30 June 2024 of 10.0c cents (2023:
0.0 cents) per fully paid share
22,100
—
61,591
—
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
DIVIDENDS
On 28 August 2024, FLT’s directors declared a fully franked 30.0 cents per fully paid ordinary share final dividend for the year
ended 30 June 2024 (2023:18.0 cents). The total amount of the dividend is $65.9million and represents 29% of FLT’s full year
underlying NPAT.
No other material matters have arisen since 30 June 2024.
ENVIRONMENTAL REGULATIONS
The group has determined that no particular or significant environmental regulations apply to it.
REVIEW OF OPERATIONS – OVERCOMING OPERATIONAL RISKS
A review of operations, financial position, business strategies and details of FLT’s outlook for 2024/25 are included on pages
2 to 6 of this report.
DIRECTORS’ REPORT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
7
INFORMATION ON DIRECTORS
The following persons were FLT directors during the financial year and up to the date of this report:
DIRECTOR
EXPERIENCE AND DIRECTORSHIPS
SPECIAL
RESPONSIBILITIES
DIRECTORS'
INTERESTS IN
SHARES OF FLT
AS AT DATE OF
THIS REPORT
ORDINARY
SHARES
Gary Smith
BCom, FCA,
FAICD
Age: 64
FLT director since 2007. Gary has vast tourism industry experience and
has served on a diverse range of boards and tourism industry related
bodies during the past 30 years. Gary is a Fellow of the Australian
Institute of Company Directors and Chartered Accountants Australia
and New Zealand. He is also a director of Michael Hill International
Limited (from Feb-16) and National Roads and Motorists' Association
Limited (the NRMA) (from Feb-19).
Independent non-
executive chairman
25,675
Remuneration &
nomination committee
member
Audit and risk
committee member
John Eales
BA, GAICD
Age: 54
FLT director since 2012. Chairman of Trajan Group Holdings Ltd (from
Mar-21) and De Motu Cordis Pty Ltd (from Jan-20). Director of Magellan
Financial Group Limited (from Jul-17), and FUJIFILM Data Management
Solutions Pty Ltd (from Jan-14).
Independent non-
executive director
13,438
Remuneration &
nomination committee
chairman
Audit and risk
committee member
Robert Baker
FCA, GAICD
BBus
(Accountancy)
Age: 66
FLT director since 2013. Former audit partner of
PricewaterhouseCoopers, with experience in the retail, travel and
hospitality sectors. Chairman of Gathid Limited (formerly Rightcrowd
Limited) (from Aug-17) and Goodman Private Wealth Ltd (from Oct-14).
Board member of Tourism Holdings Limited (from Nov 22), Apollo
Tourism & Leisure Limited (from Jan-20 to Nov-22) and Ozcare (from
Jan 22). Pro bono roles include chairman of the Archdiocesan
Development Fund, Catholic Archdiocese of Brisbane (from Jan-18),
and chairman of the audit and risk committee of Australian Catholic
University Limited (from May-15).
Independent non-
executive director
7,307
Remuneration &
nomination committee
member
Audit and risk
committee chairman
Colette Garnsey
OAM
Age: 64
FLT Director since Feb-18. Chairman of Laser Clinics Australia
(previously non-executive director from 2020) and non-executive
director of Seven West Media (from Dec-18). Extensive experience in
Australian retail industry, marketing and distribution. Former advisory
roles include advisor to Federal Minister for Trade and Investment,
Australian Fashion Week, Melbourne Fashion Festival and CSIRO.
Independent non-
executive director
7,453
Remuneration &
nomination committee
member
Audit and risk
committee member
Kirsty Rankin
B.Com, MAICD
Age: 64
FLT Director since Aug-22. Former CEO of Pinpoint Pty Ltd, an
organisation that specialised in cultivating customer loyalty and
engagement programs, prior to its sale to Mastercard in 2014.
Subsequently a global executive with Mastercard in the USA. Current
non-executive director of Azupay (privately-owned real-time payments
platform), Stone & Chalk (leading innovation start-up and scale-up hub)
and Beonic Ltd (formerly Skyfii Ltd), an ASX-listed omni-data
intelligence company.
Independent non-
executive director
3,168
Remuneration &
nomination committee
member
Audit and risk
committee member
Graham Turner
BVSc
Age: 75
Founding FLT director with significant experience in running retail travel
businesses in Australia, New Zealand, USA, UK, South Africa, Canada
and Asia. Director of the Australian Travel Industry Association (from
Sept-05).
Managing director
16,640,081
No directors held interests in share rights, options or performance rights during the year (2023: nil).
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
8
SKILLS AND EXPERIENCE
The current mix of skills and experience represented by the directors during the period, is as follows:
GARY
SMITH
JOHN
EALES
ROBERT
BAKER
COLETTE
GARNSEY
KIRSTY
RANKIN
GRAHAM
TURNER
Travel or retail
industry
ü
ü
ü
ü
ü
ü
Senior executive
ü
ü
ü
ü
ü
Finance/capital
markets
ü
Audit/accounting
ü
ü
Legal*
Regulatory/public
policy
ü
International
markets
ü
ü
ü
ü
ü
Strategy/risk
management
ü
ü
ü
ü
ü
ü
Governance
ü
ü
ü
ü
ü
Marketing/
communications
ü
ü
ü
ü
ü
Technology/IT
ü
* For expertise in areas not listed above, the directors seek expertise within FLT and externally where appropriate.
COMPANY SECRETARY
The company secretary, Mr David Smith (B.Com, LLB), joined FLT in 2002, and was appointed company secretary in February
2008. Mr Smith has more than 25 years legal experience and is also FLT’s general manager of mergers & acquisitions. Prior
to joining FLT, Mr Smith held positions with Wilson HTM, Blake Dawson (now Ashurst) and Clayton Utz.
MEETINGS OF DIRECTORS
The number of meetings of the company’s board of directors and of each board committee held during the year ended
30 June 2024 and the number of meetings attended by each director were:
COMMITTEE MEETINGS
FULL MEETINGS OF
DIRECTORS
AUDIT & RISK
REMUNERATION &
NOMINATION
A
B
A
B
A
B
Gary Smith
9
9
3
3
2
2
John Eales
9
9
3
3
2
2
Robert Baker
9
9
3
3
2
2
Colette Garnsey
9
9
3
3
2
2
Kirsty Rankin
9
9
3
3
2
2
Graham Turner
9
9
*
*
*
*
A = Number of meetings attended
B = Number of meetings held during the time the director held office or was a member of the committee during the year
* = Not a member of the relevant committee
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
9
MATERIAL BUSINESS RISKS
RECOGNISE AND MANAGE RISK
FLT’s risk management approach is anchored around the following key principles:
• Protecting the group’s assets, people and interests of our key stakeholders through effective identification and
management of risk;
• Optimising the group’s operations through continuous improvement and informed decision making; and
• Supporting the continued growth and sustainability of the group through taking the right amounts and types of risk to
deliver sustained value.
Risk management is all employees’ responsibility and this is clearly established within the risk management policy and risk
management strategy.
While FLT does not have a separate risk committee, the Board, through the combined Audit and Risk Committee, is
responsible for overseeing the company’s risk management framework. This provides the Board and management with an
ongoing program to identify, evaluate, monitor and manage material risks to enhance, over time, the value of the
shareholders’ investments and to safeguard assets.
The Audit and Risk Committee’s charter is available on FLT’s website (see www.fctgl.com/investors#governance-documents).
The framework is based around the following risk management process, as set out in the risk management strategy:
• risk identification – identifying risks that have a potential material impact to the Group’s strategic objectives and
operations;
• risk assessment – assessing the impacts and likelihood of key risks;
• risk management – developing appropriate mitigation and treatments to manage risk within acceptable levels; and
• risk monitoring and reporting – ongoing monitoring and reporting, of risks in line with the Group’s risk appetite.
Risks are identified in the context of the Group’s strategic and operational objectives including financial and non-financial
risk classes. The Board and/or Audit and Risk Committee reviews the FLT risk management policy and FLT’s risk
management framework and is satisfied that it continues to be sound.
The CEO and senior management are responsible for identifying, assessing and monitoring risk. Senior management
personnel are responsible for communication of their risk management activities in line with the Group’s risk strategy and
framework. A self-assessment on key business risks is performed and reported to the Audit and Risk Committee. Risk classes
considered strategic risk and disruption, market conditions, climate change, macroeconomic and geopolitical conditions,
regulatory risk, financial risk, operating risks, and ethics and conduct risks to the Group. Impacts as a result of key risks are
assessed across financial and non-financial impact categories, including the reputational impact to the Group.
The Enterprise Risk function ensures the approach to risk management across the Group is in accordance with the risk
management framework and supports the risk-based assurance approach to monitor the effectiveness of key controls. The
Enterprise Risk function operates independently of the businesses and provides an objective and independent assessment
of the effectiveness of FLT’s risk and control environment.
Whilst FLT does not have a dedicated internal audit function, each internal business has a risk function that is responsible for
monitoring and helping to manage risks in that business. Key strategic projects (i.e. capital raisings, mergers/acquisitions/
divestments, joint ventures, business initiatives or transformations etc.) are subjected to separate risk assessments that meet
the specific needs of the project in line with Group objectives and risk appetite.
The CEO and CFO provide the Board with a formal sign-off on the Group’s financial statements, in accordance with section
295A of the Corporations Act 2001 (Cth) and recommendation 4.2 of the ASX Corporate Governance Principles and
Recommendations. That sign-off is founded upon a sound system of risk management and internal control which is
operating effectively in all material aspects in relation to financial reporting risks.
The below section does not purport to list every risk that may be associated with the Group now or in the future. There is no
guarantee that the importance of these risks will not change, or that other risks will not emerge. While the Group aims to
manage risks in order to minimise adverse impacts on its financial and reputational standing, some risks are outside the
control of the Group.
Strategic risk and disruption
FLT faces threats and disruption that may affect its ability to execute its growth strategies, including delivering organic
growth and pursuing strategic growth through mergers and acquisitions (M&A). The Group operates in a highly competitive
environment, where it faces challenges from existing and new competitors, as well as the risk of disruption to its key
business models by emerging technologies, changing customer preferences and regulatory changes. The Group's strategic
growth objectives depend on the performance and alignment of its Global Pillars (Leisure, Corporate, Other) and its
investments, which may be influenced by various internal and external factors. The Group's M&A strategy also involves
significant risks, such as identifying suitable targets, conducting appropriate due diligence, integrating acquired businesses,
achieving synergies and meeting financial expectations. The above risks may have an adverse effect on the Group’s
operational and/or financial performance.
How we manage this risk
The Group continually assesses its strategies and models as part of our strategic planning process. Through diversification,
the Group aims to mitigate the threat of disruption and market entrants and pursue sustainable growth. Investment into key
capabilities and technologies are made with the goal of fostering innovation, automation and digital transformation in
respect of our business operations. Inorganic growth via mergers and acquisitions is continually assessed and executed
where investment presents strong value, returns and complements our portfolio.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
10
RISK PROFILE (CONTINUED)
Market conditions
As the travel industry navigates the post COVID-19 pandemic landscape, the Group must closely monitor market conditions
and associated market risks. The pandemic has significantly altered customer sentiment and travel expectations. While some
travellers are eager to explore new destinations, others remain cautious due to health concerns. Natural disasters,
pandemics, and terrorism also remain unpredictable threats. These events further disrupt travel plans, affect safety
perceptions, and lead to sudden shifts in demand. Furthermore, geopolitical tensions and regional instability can impact
specific markets, necessitating agility in our operations. This has led to patterns of travel behaviour normalising differently
across demographics leading to vastly differing consumer preferences (such as sustainable travel options) and changing
trends across both corporate and leisure travel markets.
How we manage this risk
The Group has an established presence in our key geographical regions which helps build strong local market knowledge,
operations and oversight complementing our global division and brand strategies. We seek to meet shifts in demand by
prioritising streamlining, automating and standardising business operations. Our diverse lines of business and product
offerings across the Group assist us to cater for differing travel behaviours across all demographics. Consumer preferences
are central to our sales and marketing strategies, product procurement, and our customer experience.
Climate Change
The Group and its customers, suppliers and service providers may be adversely affected by climate change, which may lead
to rising sea temperatures and sea levels, extreme weather conditions and changes in the frequency and severity of
catastrophic events such as floods, fires, storms and droughts. Physical risks resulting from climate change can be event
driven or a result of longer-term shifts in climate patterns and may have financial implications for the Group, such as indirect
impacts from supply chain disruption, impacts on sectors that leisure and corporate customers operate in (e.g. agriculture)
and the travel patterns and habits of customers. Transitional risks are those that result from actions taken to reduce
greenhouse gas emissions and mitigate climate change. Examples of this include policy and legal reforms, investor and
customer preferences and technology. Given its broad scope these risks have the potential to have substantial and
unexpected impacts on the Group and can be experienced domestically and internationally. There is uncertainty about how
the Group’s customers will continue to respond to the effects of climate change (and therefore on possible changes in
customer demand) and whether this may have an adverse impact on the Group’s financial performance, results of operations
and prospects.
How we manage this risk
The Group has a dedicated sustainability team which works with various other teams to ensure we are on track to comply
with the various proposed jurisdictional sustainability standards. The Group is planning to assess the effects of climate risk
and the associated opportunities in the upcoming financial year in accordance with the proposed standards. The Group
monitors the risks and opportunities associated with climate change and reports material matters directly to the Board. The
team has published a FY23 Sustainability Report which includes an updated emissions footprint for financial year 2023. The
team also works closely with the businesses to monitor customer expectations to design products and services in line with
their preferences and expectations.
Macroeconomic and geopolitical conditions
The travel industry is facing significant challenges due to the macroeconomic and geopolitical conditions in the world. The
global economic slowdown, exacerbated by the COVID-19 pandemic, has reduced the demand for travel among both our
Leisure and Corporate businesses. Some consumers are more cautious about spending on discretionary items such as travel,
and businesses are cutting down on travel expenses to save costs. Moreover, the increasing geopolitical tensions in various
regions, such as the conflict between Ukraine and Russia, the instability in Israel and its neighbours, and the trade disputes
between major powers, have created uncertainty and risk for travellers and the travel industry alike. These tensions have
already led to travel restrictions, major sanctions for countries and nationalities, boycotts, or even violence that could disrupt
or endanger travel plans. Therefore, the Group needs to be prepared for the potential impact of these macroeconomic and
geopolitical factors on its operations, profitability, and reputation.
How we manage this risk
Digitisation of processes, diversification and key offerings across different channels, revenue streams and products help the
Group remain resilient. Travel is proving a priority amongst consumer discretionary categories and is positioned well for
sustained growth. We focus on having a strong market presence and supply chain management in the corporate and leisure
travel industries. Further, strong risk management helps build balance sheet strength whilst business continuity and scenario
planning strategies are in place to mitigate any impacts associated with this risk.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
11
RISK PROFILE (CONTINUED)
Regulatory risk
The Group, as a retailer of travel and travel-related products operating across multiple international markets is exposed to
the risk of regulatory enforcement where business activities breach jurisdictional regulatory requirements.
These include, but are not limited to the following key areas:
• Data privacy breach / confidentiality mismanagement
• External financial and regulatory reporting failure
• Tax payment/filing failure
• Money laundering and terrorism financing
• Sanctions violations
• Bribery and corruption activities
Any regulatory enforcement against FLT could materially harm the reputation and financial performance of the Group.
How we manage this risk
The Group applies appropriate resourcing, training, technology and processes to support FLT in maintaining effective
relationships with regulators, responding adequately to regulatory change, holding proper licensing and certification, and
operating prudently across borders.
Financial risks
Liquidity & Financing risk
Liquidity and access to capital are fundamental requirements to achieve the Group’s business objectives and to meet its
financial obligations when they fall due. The inability to maintain a strong balance sheet or to secure new capital or credit
facilities on favourable terms could impact upon the Group’s operational and financial performance and the ability to meet
its ongoing liquidity (including debt refinancing) needs. As a borrower of capital, the Company is exposed to fluctuations in
interest rates which may increase the cost of servicing the Company’s debt. Developments in global financial markets may
adversely affect the liquidity of global credit markets and the Company’s access to those markets. This may have a material
adverse effect on the Company's future financial performance and financial position.
How we manage this risk
The Group closely manages and monitors liquidity through rolling operating cashflow forecasts, supported by Group
Treasury review of short-term,13-week cashflow forecasts prepared weekly at a detailed level by business and country. This
provides oversight of the amount and timing of cash inflows and outflows, and identification of any potential liquidity gaps
or surpluses. Further, monitoring of liquidity ratios to assess the Group's ability to convert its assets into cash and to cover its
short-term liabilities is routinely completed. Efforts to optimise working capital are also made by managing receivables and
payables, alongside negotiating favourable terms with suppliers and customers. The Group monitors its debt structures in
accordance with its capital management strategy. Our capital framework is aimed at guiding the allocation of capital in a
manner that seeks to effectively balance sustaining growth, maintain a strong balance sheet and maximise returns to our
shareholders.
Foreign Exchange Risk
The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures on future cash
flows. The movement of foreign exchange rates may have an adverse effect on the Group’s operating and financial
performance. Furthermore, due to the nature of the Group’s functions as an international tourism business, changes to
foreign exchange rates can impact the underlying demand for travel and tourism services. The movement of foreign
exchange rates are beyond the Group’s control and could have an adverse effect on operating and financial performance.
How we manage this risk
A central treasury department oversees financial risk under board-approved policies that cover specific areas, such as
foreign exchange risk, interest rate risk and credit risk, use of derivative financial instruments and non-derivative financial
instruments and investments. Treasury identifies, evaluates and hedges financial risks in co-operation with the Group’s
operating units. The board provides written principles for overall risk management, as well as policies covering the specific
areas noted above.
Credit risk (suppliers, corporate customers)
The Group’s business model includes payment terms relating to the pre-payment by customers for travel and tourism
related services, and the maintenance of large corporate credit balances and related payment terms between the Group
and its suppliers. To the extent these terms of payment and supply change, customers seek refunds, chargebacks or
reversals, receivables are uncollectable fully or partly, contract assets on balance sheet are unrecoverable or counterparties
do not act consistently with supply terms, the Group may need to obtain additional working capital having an adverse effect
on operating and financial performance of the Group.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
12
RISK PROFILE (CONTINUED)
How we manage this risk
The Group manages debtor and supplier risk by applying specific credit terms and criteria to assess the creditworthiness
and reliability of its suppliers and corporate customers. The Group also conducts regular supplier and corporate customer
evaluations and appraisals to monitor their performance and compliance with the Group's policies and standards.
Depending on the stakeholder’s risk profile, the Group may require collateral or guarantees as a form of security for the
payment obligations. The Group also adheres to the agreed terms with its suppliers and corporate customers and maintains
timely and accurate settlement of invoices.
Acquisition and investment risk
The Group continuously evaluates acquisition and divestment opportunities for sustainable growth. Any past or future
acquisitions (or disposals) will cause a change in the sources of the Group’s earnings and result in variability of earnings over
time. Integration of new businesses may be costly and occupy management’s time. The financial performance of
investments and the economic conditions they operate within may result in investment impairment should the recoverable
amount of the investment fall below its carrying value.
How we manage this risk
The Group manages acquisition and investment risk by applying a rigorous investment and due diligence process, which
involves evaluating the financial, operational, legal and strategic aspects of each opportunity. The Group also monitors and
reports on the performance and risks of its existing investments on a regular basis. The Group aims to ensure that its
investments are aligned with its strategic objectives and deliver value to the Group.
Operational risk
Human Resource Risk
As a predominately service-based organisation with high dependency on key senior management, and having “people at
our core”, the risk of losing key staff or having excessive turnover in staff is significantly problematic to the Group. Without
experienced consultants, sales teams, frontline managers and senior leaders this could cause disruption to the conduct of
the Group’s business in the short term and negatively affect the Group’s operating and financial performance. Similarly, the
Group’s operations, performance and reputation could be adversely affected if the Group is unable to attract staff or were
to lose key staff members which it was unable to replace with equally qualified personnel. This risk is exacerbated by having
a complex operating environment with over 30 brands across multiple countries globally.
How we manage this risk
The Group focuses on its culture, reward and recognition which helps staff satisfaction and retention rates remain high. The
Executive Team (Taskforce) are collectively accountable for ensuring our organisational culture is appropriate to meet
objectives. The Group has strong talent management and succession planning practises in place, along with retention
mechanisms in place for key capability.
Technology risk including cyber security
The Group heavily relies on the performance, reliability, and availability of its information technology (IT), communication,
and other business systems for many BAU activities. Therefore, any damage to, or failure of, the Group’s key systems may
result in severe disruptions to the Group’s business operations resulting in material risk to the Group’s operating and
financial performance. The Group also holds / handles a significant amount of personal client data and any failures of, or
malicious attacks on, the Group’s technical systems may similarly impact both the Group and its reputation. The risk of
cyber, ransomware, and malware threats is also significantly increasing and changing constantly, especially as the Group
adapts to more hybrid and remote work environments. Moreover, the regulatory environment is becoming more stringent
and could impose severe consequences on the Group for any non-compliance, such as fines, penalties, orders,
undertakings, lawsuits, or public statements that could damage the Group's reputation and trust with its customers and
suppliers. This could lead to the loss of contracts, market share, and business performance.
How we manage this risk
The Group has established a dedicated Information Security team that supports our businesses in implementing effective
security controls and practices. The Group also has a maturing data strategy that helps us to identify, classify and manage
our critical data assets across the enterprise. Furthermore, we follow cybersecurity frameworks that are designed to protect
our systems and data from unauthorised access, detect any potential breaches or incidents, and respond quickly and
appropriately to mitigate the impact. We conduct regular awareness training and campaigns to educate our employees and
stakeholders on how to prevent and report cyber threats. The Group performs security assessments and continuous
monitoring to evaluate our security posture and identify any gaps or areas for improvement.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
13
RISK PROFILE (CONTINUED)
Supply Chain Risk
The intricate supply chain of the Group involves a network of travel providers, major airlines, global distribution system
providers, and intermediaries. Notably, the International Air Transport Association (IATA) operates a clearing system within
this ecosystem, which introduces material risk to the Group. Due to the reliance on third party suppliers, a dispute or
breakdown in relationships with suppliers could harm the Group’s reputation and financial performance. Failure to reach
suitable arrangements or a supplier’s inability to meet contractual obligations poses significant threats. Further, the current
economic climate exacerbates these risks. Suppliers, including international airlines facing operational challenges, may alter
engagement terms or even default on payments. Such financial stress can directly impact the Group’s operations and
financial health.
How we manage this risk
The Group undertakes due diligence and monitors supply chain and third party risk through relationship management. The
Group also maintains a diverse supplier base to reduce dependency and increase resilience. Furthermore, the Group
conducts initial and ongoing supplier assessment and due diligence to verify compliance, performance and quality
standards.
Ethics and Conduct
FLT recognises that ethical conduct and strong governance are material to the success of our business in line with
shareholder, regulator, customer and employee expectations. The failure of our people or third-parties to adhere to our
code of conduct could deliver reputational impact or lead to a breach of legislation or regulations.
Ethical behaviour across our supply chain, especially around issues like human rights, modern slavery, and data security, is
essential. Breaches of conduct including fraud, bribery and/or corruption, anti-competitive behaviour, economic and trade
sanctions, money laundering and/or terrorism financing, privacy breaches or misconduct carry significant risk to our
business.
How we manage this risk
Our approach to corporate governance helps to manage, oversee and report against our risk of misconduct within the
Group. FLT endorses and applies the ASX Corporate Governance Principles and Recommendations and complies with each
recommendation as outlined in our Corporate Governance Statement. The Group monitors and reports on material
breaches of our code of conduct directly to the Board.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
14
OVERVIEW
JOHN EALES
REMUNERATION AND
NOMINATION COMMITTEE CHAIRMAN
REMUNERATION REPORT GLOSSARY
AIM: Alternative Investment Market
KMP: Key management personnel
BOS: Business ownership scheme
KPIs: Key performance indicators, the basis for FLT’s STIs
CEO: Chief executive officer
LSL: Long service leave
CFO: Chief financial officer
LTRP: Long Term Retention Plan
DIP: Deferred Incentive Plan
MDs: Managing directors
EBITDA: Earnings before interest,tax, depreciation and
amortisation
NEDs: Non-executive directors
EMEA: Europe, Middle East and Africa
PBT: Profit before tax
EPS: Earnings per share
PCRP: Post-COVID-19 Retention Plan
ESP: Employee Share Plan
RNC: FLT’s Remuneration and Nomination Committee
EY: Ernst & Young
SBP: Share based payments
FLT: Flight Centre Travel Group Limited
STIs/LTIs: Short-term incentives/long-term incentives
FTSE: Financial Times Stock Exchange
Taskforce: FLT’s global executive team, consisting of Graham
Turner, Adam Campbell, Chris Galanty, James Kavanagh, Greg
Parker, Bertrand Saillet, Charlene Leiss, Steven Norris and
Lincoln Turvey
FY: The fiscal year
GRR: Global Recovery Rights
I am pleased to present your company’s FY24
Remuneration Report.
The year to 30 June 2024 saw a long-awaited - and much
welcomed - return to a degree of normalcy in our industry,
as demand for travel continued to take off across both the
leisure and corporate sectors.
As highlighted in this report, our company delivered
significant profit growth in this improved trading
environment, as well as solid TTV uplift. Importantly, margin
also improved significantly, as we progressed towards our
strategic objective of delivering a 2% underlying profit
margin (underlying profit before tax as a percentage of TTV).
Credit for these achievements must, of course, go to our
people, who remain our most valuable asset.
Ongoing Focus on Attraction and Retention
This importance is reflected in the investments we make in
our people at all levels.
This starts with attracting the right talent and extends
through the development of their careers, as we strive to
help them advance the skills needed to grow our business.
Naturally, remuneration plays a key role in that journey and
in ensuring key people are retained and develop long-term
careers with us.
While we continue to refine and tailor our remuneration
systems and offerings to ensure they remain fit-for-purpose
and attractive in a highly competitive jobs market, our
objectives in this area are unchanged.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
15
Our priorities are to:
• Attract and retain the right people. This has always
been a strength, as illustrated by our executive team’s
tenure and varied career development paths
• Recognise and reward people appropriately for their
contributions in growing the business and helping it
achieve the long-term strategic objectives that will
deliver sustainable growth in shareholder value.
• Deliver simple, sensible and transparent incentive
structures that are measurable and aligned to these
strategic objectives; and
• Further align our people’s interests to those of
shareholders by providing ownership through share
plans and incentive programs. This ownership ensures
our people adopt the behaviours and implement the
strategies that deliver long-term benefits for
stakeholders, rather than over-indexing on short-term
performance.
Of course, it is also critical that our remuneration systems are
understood and accepted, so we continue to engage with
industry bodies, special interest groups and other
stakeholders to enhance this understanding.
Generally, shareholders have responded positively to our
remuneration system and the policies, beliefs and
governance structure which underpin it, as evidenced by the
strong endorsement this report has traditionally received
from shareholders at our Annual General Meetings. To date,
the largest vote against our report was 5.85% in 2007 and
the average over the past five years was 2.2%.
A Simple System That is Purpose-built and
Aligned to FLT’s Strategic Objectives
As a company, we value common-sense over conventional
wisdom, which means we take a common-sense approach
that is aligned to our strategic objectives and our
philosophies.
This is very clearly illustrated in our remuneration structures,
which are simple and purpose-built to align to our specific
requirements, rather than off-the shelf offerings designed to
suit companies with vastly different structures, objectives,
culture and beliefs.
In essence, our remuneration packages for key executives
consist of:
• A fixed pay component
• A variable short-term incentive (STI) component, which
is tied to measurable and pre-determined targets,
capped at 30% of fixed pay and not guaranteed in part
or full
• An equity-based long term retention component. This
is available via our Long-Term Retention Plan (LTRP), a
purpose-built program introduced to encourage and
reward a group of key executives for continuing their
careers with FLT for the long-term. This is first and
foremost a retention program and it has been
enormously successful in achieving this objective, as
evidenced by more than 96% retention of participants
who were invited to take part in the FY24 program
(only 3 of 189 participants voluntarily left the company);
and
• A new, equity-based deferred incentive program (DIP),
targeted at a small group of very senior executives who
can directly influence group profit and TTV growth
The DIP is the only major change to our FY25 remuneration
structures and it has been introduced from 1 July 2024 to
serve two very clear purposes:
1. To help ensure that the packages we offer our DIP
participants are competitive - which is critically
important. Recent benchmarking indicated that an
increase was necessary to bring our remuneration
offerings closer in line with our peers ; and
2. To reward our DIP participants for delivering our
strategic objective - the underlying 2% PBT margin -
while continuing to grow the business.
The DIP is distinguished from FLT’s entrenched and widely
used STI program in a number of other ways, specifically its:
• Benefits are deferred, which allows returns to be
clawed back if necessary and encourages a longer-
term focus
• Equity-based payment method, which engenders a
stronger sense of ownership among participants and
encourages continued growth in shareholder value
• Application to a much smaller group of very senior
leaders; and
• Focus on achieving and maintaining specific margin
and sales-related “stretch” targets, rather than simple
year-on-year profit growth targets, which are used
within FLT’s established STI programs
Effectively, participants will be rewarded for delivering
efficient growth - TTV growth at an improved margin.
Depending on their positions, participants are targeted to
earn an additional 20%, 50% or 70% of their packages via the
DIP if the challenging performance hurdles are achieved.
The margin target for executives aligns with the company’s
stated 2% stretch target, which requires FLT to deliver
substantial profit and earnings per share growth as
illustrated in the hypothetical example below.
Based on FY24 TTV, FLT would have needed to achieve a
$474million underlying PBT - and additional 48% growth on
the circa $320million result and almost 250% year-on-year
growth- to achieve the 2% margin and for executives to earn
their targets under the DIP (of 20%, 50% or 70%).
This is not, however, an “all or nothing” program that is at
risk of losing relevance or encouraging inappropriate
behaviour if the stretch target becomes unachievable during
the course of the year.
Participants will be eligible to receive 30% of their targeted
DIP earnings if FLT grows and delivers a 1.6% underlying
profit margin. Based again on the hypothetical FY24
example listed above, FLT would have needed to deliver an
additional $60million underlying profit to clear this first
hurdle and trigger this payment.
There is also “upside” in the program to reward executives if
they deliver growth and extraordinary margin expansion to a
“super stretch” target of 2.5%. In this scenario, which
represents circa $594million underlying PBT on FY24 TTV,
participants will earn a capped 150% of their targeted DIP
earnings at the same time as shareholders will have
benefited from extraordinary growth in earnings per share
and TSR.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
16
With the addition of the DIP we believe we will offer our key
executives a more competitive, well rounded and balanced
remuneration structure with a very clear focus on:
• Achieving short-term profit targets for the company
overall and, in most cases, for their individual
businesses (delivered via our well established STI
program)
• Growing sales year-on-year and becoming more
efficient by improving net margin (delivered by our
new DIP); and
• Adopting a business owner’s mindset and creating
longer term value because of the stronger sense of
ownership (delivered by both the long-standing LTRP
and our new DIP)
Conclusion
As is the case in all key areas throughout the business, FLT
continues to refine its remuneration systems and structures
to ensure they remain fit-for-purpose and are aligned with
the company’s strategic objectives.
The only significant change that is in place for FY25 - the
introduction of the tailor-made DIP - serves a dual strategic
purpose in that it is designed to ensure remuneration
packages for key executives remain competitive, thereby
rectifying a concern that we had identified, while also
focusing these executives on the company’s primary
objective - delivering the 2% underlying profit margin, while
continuing to grow. This growth metric is a very important
aspect because it ensures our executives continue to take a
long-term view and invest in businesses that are key future
TTV drivers.
Thank-you for your ongoing support of our company.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
17
How is FLT’s
performance reflected
in FY24 remuneration
outcomes?
The reward framework aims to align our employees’ interests with those of our shareholders and
stakeholders. The remuneration outcomes reflect a pay-for-performance approach, aligned to the
principle that “what gets rewarded gets done”.
For executive STI’s, an underlying PBT gateway is applied, which varies between business and
region, such that no STI is funded unless the gateway is met or exceeded. All executives are
subject to a Group PBT component within their STIs.
The FY24 underlying PBT exceeded the gateway, and FLT delivered strong financial performance
with 130 per cent underlying PBT growth to $320m, 212% statutory PBT growth to $220m, and
record TTV of $23.74b.
This financial performance resulted in FY24 STI outcomes for KMP ranging from 37 per cent to 78
per cent of maximum STI opportunity, with the average of 55 per cent, noting the maximum is
equivalent to 30 per cent of fixed pay.
What changes were
made to remuneration
in FY24?
For FY24, remuneration structures were simplified, as outlined in the FY23 Remuneration Report.
Fixed pay: What was previously referred to as ‘Targeted Remuneration Packages,’ which was split
as 90 per cent base salary plus super and a 10 per cent at-risk component, was combined as the
remuneration package’s fixed pay component.
Executives and NEDs received a modest fixed pay increase, reflecting changes in superannuation
payments in Australia.
STI: Historically STIs were not capped for KMP, with reliance on governance processes and natural
curbs to ensure reward outcomes were aligned to shareholders’ interests and to prevent
incentives from reaching unacceptable levels. For FY24, an STI cap of 30 per cent fixed pay was
introduced.
Where does FLT’s
remuneration sit
relative to market?
During FY24, EY was engaged to provide external benchmarking for Taskforce roles. The review
was informed by benchmarking data of ASX-listed companies in two peer groups:
• A market capitalisation peer group: comprised of companies with a 12-month average market
capitalisation within 50%-200% of FLT’s market capitalisation.
• An industry peer group: comprised of companies within the Consumer Discretionary GICS
sector.
For the CEO, Corporate role (London-based), the market data provided was sourced from publicly
disclosed remuneration arrangements for CEOs of organisations listed on the UK AIM and FTSE
SmallCap index.
The outcome of this benchmarking was consistent with what was reported in the FY23
Remuneration Report, in that remuneration arrangements for Executives were below the median
and in some cases the 25th percentile relative to the external market.
Relative to CEO roles in the ASX, Graham Turner, CEO and Founder, is paid well below market:
* Data source | ACSI CEO Pay in ASX200 Companies: July 2024
REMUNERATION - KEY QUESTIONS
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
18
Are any changes
planned for FY25?
In FY24, a comprehensive review of executive remuneration was undertaken.
The purpose of this review was to ensure that remuneration outcomes aligned with the company’s
strategic objective and overarching remuneration philosophy of attracting, retaining and
motivating high calibre employees.
As reported above, pay for Taskforce [senior executives] relative to market was identified as being
on the lower end. In addition, the Post-COVID-19 Retention Plan, which was implemented to help
retain key employees critical to the business during the post-pandemic recovery and rebuilding
phase, fully vested in August 2024 and, therefore, concluded. Within this environment, it was
crucial to reassess and adjust the remuneration framework to ensure competitiveness and to
mitigate increased turnover risk in a tight labour market.
There are no changes to fixed pay other than the superannuation increase in Australia, and the
Board and Taskforce believe that the current STI and LTRP designs remain fit-for-purpose.
Changes were, however, made to address the issues – and the resultant risks – identified within
the external benchmarking data. This has led to a new equity-based Deferred Incentive Plan (DIP)
being introduced for FY25. The DIP is targeted at a select group of very senior executives who
have a direct influence on group profit and TTV growth. This change ensures that remuneration
remains competitive and that financial rewards are closely aligned with the achievement of our
overarching strategic objective—attaining a 2 per cent PBT margin—while continuing to drive
business growth.
Executive KMP will have a DIP target equivalent to 70 per cent of fixed pay, with the exception of
Chris Galanty who will have a 20 per cent target due to his participation in the BOS Multiplier
Programme (outlined on page 30). The DIP will be delivered as performance rights, subject to a
TTV growth “gate-opener” and a Group underlying PBT margin performance hurdle, with a 12-
month deferral period.
This design ensures Executives focus on meeting the company’s strategic objective of delivering a
2 per cent underlying PBT margin, while also ensuring they are incentivised and rewarded for
actions that drive longer-term value creation for shareholders. Aligned to our philosophies of
‘Ownership’ and ‘Reward’, the use of an equity-based plan with deferral ensures that Executives
are fully invested in the company's performance trajectory, encouraging strategic decision-making
and reflecting our commitment to fostering sustainable growth and maximising shareholder value.
What proportion of
remuneration is
performance-based?
The graphs below set out the remuneration mix for the Group CEO and other Executive KMP for
FY24:
As shown above, the current pay-mix is more weighted towards fixed remuneration. This was
highlighted in the executive remuneration review when comparing our pay mix to that of the ASX
100 and ASX 101-200 companies. The data suggests that 60-70 per cent of executive pay is
typically performance-based or at risk.
Are STI payments
capped?
Yes, an Executive’s STI is capped at 30 per cent of fixed pay.
Are any STI payments
deferred?
There is currently no STI deferral.
Are there any clawback
provisions for
incentives?
There is currently no clawback.
From FY25, with the introduction of the new DIP, the Board will implement both malus and
clawback provisions. Under these provisions, the Board will have the authority to adjust or cancel
incentives before they are paid (malus) and to reclaim already-disbursed incentives (clawback) in
the event of material financial misstatements, misconduct that could harm the Group, or gross
negligence.
Are non-financial KPIs
used in incentives?
FLT does not currently and has not traditionally tied KMP incentives to non-financial KPIs. The
company may consider using them in future if they are measurable (quantifiable) and aligned to
FLT’s strategic objectives and shareholder interests.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
19
Why are there no
performance hurdles in
the LTRP?
The LTRP is not a traditional LTI and is strategically designed to be an executive retention tool,
therefore no performance-related hurdles apply. Rights can be granted to participants annually
while they remain part of the program. This is first and foremost a retention program and it has
been enormously successful in achieving this objective, as evidenced by more than 96 per cent
retention of participants who were invited to take part in the FY24 program (only 3 of 189
participants voluntarily left the company).
FLT believes the LTRP gives executives a stronger sense of ownership and alignment with
shareholders than other commonly used plans that are tied to longer term performance hurdles
that may or may not be achieved. LTRP participants gain an immediate sense of share ownership
and see the same benefits as other shareholders (excluding dividends and voting rights), while
also being motivated as an owner to deliver longer term value and share price growth.
FLT regularly reviews all components of remuneration and continues to maintain the original
structure of the plan, given the success in achieving its primary strategic objective of retaining key
individuals while aligning their interests to shareholders.
Does FLT buy shares or
issue new shares for
equity-based plans?
The Board has discretion to issue new securities or buy existing securities on-market. During FY24
securities were purchased on-market.
Can equity plan
participants hedge
their unvested awards?
Consistent with the Corporations Act 2001, participants are prohibited from hedging their
unvested performance rights.
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
20
REMUNERATION REPORT - AUDITED
This remuneration report has been prepared in accordance with section 300A of the Corporations Act 2001 and the
information has been audited as required by section 308(3C) of the Corporations Act 2001.
CONTENTS
Section
Page
KMP for FY24
21
Executive remuneration outcomes for FY24 and the link to business performance
22
Executive KMP remuneration framework
24
Equity instrument disclosure
29
Remuneration governance
32
NED remuneration
33
Additional required disclosures
33
KMP FOR FY24
This report covers the KMP remuneration details for the company and consolidated entity consisting of FLT and the entities
it controlled for the year ended 30 June 2024. Board and KMP are as defined by AASB 124 Related Party Disclosures and are
responsible for planning, directing and controlling the entity’s activities. For FY24, the KMP were:
NON-EXECUTIVE DIRECTORS
TERM
Gary Smith
Chair
Full year
John Eales
Non-Executive Director
Full year
Robert Baker
Non-Executive Director
Full year
Colette Garnsey
Non-Executive Director
Full year
Kirsty Rankin
Non-Executive Director
Full year
EXECUTIVE DIRECTOR
CURRENT FLT ROLE
FIRST FLT ROLE
TENURE
TERM
Graham Turner
CEO
CEO
43 years
Full year
EXECUTIVE KMP
CURRENT FLT ROLE
FIRST FLT ROLE
TENURE
TERM
Adam Campbell
CFO and CEO - Global
Business Services
Risk & Audit
17 years
Full year
Chris Galanty
CEO - Corporate
Flight Centre Putney (UK)
27 years
Full year
James Kavanagh
CEO - Leisure
Campus Travel Account
Manager
20 years
Full year
Greg Parker
CEO - Supply
Air Contracting (Australia)
21 years
Full year
Parent Entity
With the exception of Chris Galanty, the executives listed above were also Parent Entity executives.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
21
EXECUTIVE REMUNERATION OUTCOMES FOR FY24 AND THE LINK TO BUSINESS PERFORMANCE
CURRENT AND PAST FINANCIAL PERFORMANCE
The table below provides summary information on the Group’s and shareholder earnings for the five years to 30 June 2024.
FY24
FY23
FY22
FY21
FY20
Profit / (loss) before income tax
$219.7m
$70.5m
($377.8m)
($601.7m)
($848.6m)
Underlying profit / (loss) before income tax¹
$320.4m
$138.8m
($360.9m)
($507.1m)
($509.2m)
Profit / (loss) after income tax
$139.2m
$47.4m
($287.2m)
($433.5m)
($662.2m)
Interim dividend
10.0c
—
—
—
—
Final dividend
30.0c
18.0 c
—
—
—
Earnings / (loss) per share (basic)
63.7c
23.1c
(142.4c)
(217.5c)
(552.2c)
Share price at 30 June
$20.18
$19.05
$17.36
$14.85
$11.12
Increase in share price %
6 %
10%
17%
34%
(73%)
1 Underlying profit / (loss) before tax is a non-IFRS measure and is unaudited. Refer to note A1 segment information for reconciliation of underlying to statutory profit / (loss)
before tax.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
22
SUMMARY OF FY24 REMUNERATION
Group CEO
remuneration
Fixed pay: Graham Turner received a 5 per cent increase in fixed remuneration for FY24.
Fixed pay for FY24 was $807,185, up from $768,748 in FY23. The primary difference is that in FY23
only 90 per cent of what was previously referred to as ‘targeted remuneration packages’ was
reported as salary or fees ($691,874), and the other 10 per cent was at risk component ($76,874).
From 1 July 2023, these two components were combined as the remuneration package’s fixed pay
component.
STI: FY24 underlying PBT exceeded the gateway, and FLT delivered strong financial performance
with 130 per cent underlying PBT growth to $320m, 212% statutory PBT growth to $220m and
record TTV of $23.74b. This financial performance resulted in an FY24 STI outcome of $147,424
which is 61 per cent of the maximum STI opportunity.
Fixed pay for
Executive KMP
Fixed pay: No Executive KMP received a fixed pay increase for FY24, with the exception of the
superannuation increase in Australia.
As above, what was previously referred to as ‘targeted remuneration packages’ was split as 90 per
cent base salary plus super and a 10 per cent at risk component, this was combined as the fixed pay
component of the remuneration package.
Incentives for
Executive KMP
STI: The FY24 underlying PBT exceeded the gateway, and FLT delivered strong financial
performance with 130 per cent growth in underlying PBT growth to $320m, 212% statutory PBT
growth to $234m, and record TTV of $23.74b.
This financial performance resulted in an average FY24 STI outcome of 53% per cent of the
maximum STI opportunity, noting the individual outcomes are based on underlying PBT targets
which vary between business and region.
LTRP: This award was subject to a continued service condition with the performance period ending
30 June 2024, with the rights vesting in the August 2024 trading window.
PCRP: This award was subject to a continued service condition with the performance period ending
30 June 2024, with the rights vesting in the August 2024 trading window. This was the final tranche
of the matched rights.
EXECUTIVE KMP STI AWARDS IN FY24
STI max %
of fixed remuneration
Actual STI
% of max
Forfeited STI
% of max
Actual STI
$
Graham Turner
30 %
61 %
39 %
$147,424
Adam Campbell
30 %
61 %
39 %
$203,503
James Kavanagh
30 %
37 %
63 %
$105,226
Chris Galanty
30 %
49 %
51 %
$76,514
Greg Parker
30 %
78 %
22 %
$212,581
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
23
STATUTORY REMUNERATION & FRAMEWORK
The following table shows the remuneration paid and payable to KMP for the year ended 30 June 2024. Remuneration
amounts are determined in accordance with the Corporations Act 2001.
PAID AND PAYABLE REMUNERATION
SHORT-TERM
EMPLOYEE BENEFITS
POST EMPLOYMENT
BENEFITS¹
TOTAL PAID
AND PAYABLE
REMUNERATION
CASH SALARY
AND FEES²
SHORT TERM
INCENTIVE
BOS INTEREST³
SUPERANNUATION
NAME
$
$
$
$
$
NON-EXECUTIVE DIRECTORS
Gary Smith
2024
274,408
—
—
27,399
301,807
2023
274,708
—
—
25,292
300,000
John Eales
2024
158,873
—
—
17,476
176,349
2023
158,873
—
—
16,682
175,555
Robert Baker
2024
158,873
—
—
17,476
176,349
2023
158,873
—
—
16,682
175,555
Colette Garnsey
2024
158,873
—
—
17,476
176,349
2023
158,873
—
—
16,682
175,555
Kirsty Rankin
2024
158,873
—
—
17,476
176,349
2023
135,272
—
—
14,204
149,476
EXECUTIVE DIRECTOR
Graham Turner
2024
779,786
147,424
—
27,399
954,609
2023
666,582
204,057
—
25,292
895,931
EXECUTIVE KMP
Adam Campbell
2024
1,086,833
203,503
—
27,399
1,317,735
2023
975,620
295,205
—
25,292
1,296,117
Chris Galanty
2024
695,698
76,514
1,067,736
—
1,839,948
2023
582,500
124,116
815,246
—
1,521,862
James Kavanagh
2024
917,601
105,226
—
27,399
1,050,226
2023
791,549
386,669
—
25,292
1,203,510
Greg Parker (became a KMP on 1 July 2023)4
2024
875,850
212,581
—
27,399
1,115,830
2023
—
—
—
—
—
Melanie Waters-Ryan (retired 31 August 2023, ceased being a KMP on 30 June 2023)4
2024
—
—
—
—
—
2023
1,220,083
363,182
—
25,292
1,608,557
Charlene Leiss (ceased being a KMP on 30 June 2023) 4
2024
—
—
—
—
—
2023
882,091
129,220
—
14,612
1,025,923
Steven Norris (ceased being a KMP on 30 June 2023)4
2024
—
—
—
—
—
2023
755,762
197,673
—
—
953,435
TOTAL KMP COMPENSATION (EXCLUDING LONG TERM BENEFITS)
2024
5,265,668
745,248
1,067,736
206,899
7,285,551
2023
6,760,786
1,700,122
815,246
205,322
9,481,476
1 Termination benefits accrued as at FY23 (leave entitlements and agreed upon termination benefit) of $1,220,000 were paid during FY24 (2023: Nil paid).
2 Cash salary and fees includes accrued annual leave used and paid out as salary during the year.
3 BOS interest shown above does not take into account financial liabilities (principal repayments) that may relate to this investment.
4 For KMP who became a KMP during the current year or ceased being a KMP during the prior year, the amounts disclosed reflect the relevant service period served.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
24
STATUTORY REMUNERATION & FRAMEWORK (CONTINUED)
NEDs receive fixed fees, do not receive STIs or LTIs and do not participate in the BOS or BOS Multiplier program. No
components of their remuneration are at risk.
LONG-TERM
EMPLOYEE BENEFITS
SHARE- BASED
PAYMENTS
TOTAL PAID
AND PAYABLE
REMUNERATION
LONG
SERVICE
LEAVE¹
BOS
MULTIPLIER
PROVISION²
TERMINATION
BENEFITS3
EQUITY
SETTLED
PLANS4,5
TOTAL
REMUNERATION
PERCENTAGE
PERFORMANCE
RELATED6
NAME
$
$
$
000
$
$
%
TOTAL NON EXECUTIVE DIRECTORS COMPENSATION
2024
1,007,203
—
—
—
—
1,007,203
— %
2023
976,141
—
—
—
—
976,141
— %
EXECUTIVE DIRECTOR
Graham Turner
2024
954,609
32,002
—
—
—
986,611
15 %
2023
895,931
56,763
—
—
—
952,694
21 %
EXECUTIVE KMP
Adam Campbell
2024
1,317,735
19,933
—
—
622,881
1,960,549
10 %
2023
1,296,117
51,102
—
—
716,938
2,064,157
14 %
Chris Galanty
2024
1,839,948
—
733,255
—
345,393
2,918,596
64 %
2023
1,521,862
—
1,099,366
—
433,375
3,054,603
67 %
James Kavanagh
2024
1,050,226
66,397
—
—
319,775
1,436,398
7 %
2023
1,203,510
51,870
—
—
366,271
1,621,651
24 %
Greg Parker (became a KMP on 1 July 2023)7
2024
1,115,830
(16,808)
—
—
273,162
1,372,184
15 %
2023
—
—
—
—
—
—
— %
Melanie Waters-Ryan (retired 31 August 2023, ceased being a KMP on 30 June 2023)7
2024
—
—
—
—
—
—
— %
2023
1,608,557
90,702
(2,619,811)
1,220,000
(57,537)
241,911
(933) %
Charlene Leiss (ceased being a KMP on 30 June 2023) 7
2024
—
—
—
—
—
—
— %
2023
1,025,923
—
—
—
363,858
1,389,781
9 %
Steven Norris (ceased being a KMP on 30 June 2023)7
2024
—
—
—
—
—
—
— %
2023
953,435
—
—
—
355,235
1,308,670
15 %
TOTAL KMP COMPENSATION
2024
7,285,551
101,524
733,255
—
1,561,211
9,681,541
2023
9,481,476
250,437
(1,520,445)
1,220,000
2,178,140
11,609,608
1 Long Service Leave (LSL) includes amounts accrued and taken during the year. LSL provisions are linked to overall executive remuneration (which consists of the short-term
benefits noted above) and, therefore, vary from year to year. Movements are based on total salary which is dependent on performance during the year. Negative amounts
are sometimes recognised, as provisions naturally adjust in periods where incentives are not earned and the rate used for LSL calculation reduces compared to prior
periods.
2 BOS Multiplier program provisions are linked to profit and, therefore, vary from year to year.In FY23 Melanie Waters-Ryan’s negative BOS Multiplier amount reflects the
decrease in the BOS Multiplier provision due to her retirement and in accordance with the final redemption terms. Information on the BOS program is included under the
Business Ownership Scheme (BOS) Multiplier Program - grandfathered arrangement for Executive KMP.
3 Melanie Waters-Ryan received retirement (termination) benefits during FY24. These were fully accrued in the FY23 financial statements.
4 FY24 Share-based payments represent amounts expensed in relation to rights granted under LTRP Grant 2022 (Grant 7), LTRP Grant 2023 (Grant 8) and LTRP Grant 2024
(Grant 9) and PCRP (refer Legacy Remuneration Arrangements). A. Campbell, J. Kavanagh and G.Parker include matched rights granted under the ESP (refer Employee
Share Plan (ESP)/General Terms). FY23 Share-based payments represent amounts expensed in relation to rights granted under LTRP Grant 2019 (Grant 4b), LTRP Grant 2020
(Grant 5b), LTRP Grant 2021 (Grant 6 & Grant 6b), LTRP Grant 2022 (Grant 7), LTRP Grant 2023 (Grant 8), LTRP Grant 2024 and PCRP (refer Legacy Remuneration
Arrangements). A. Campbell, J. Kavanagh, C. Leiss and S. Norris’ include matched rights granted under the ESP (refer Employee Share Plan (ESP) / General Terms).
5 Melanie Waters-Ryan retired on 31 August 2023. Share-based payment expense previously recognised under AASB 2 in respect of the rights relating to LTRP Grant 7 and
PCRP Match 2 rights has been reversed in the year ended 30 June 2023 resulting in a negative amount reported for share-based payment remuneration in 2023.
6 Performance related percentage calculated as the sum of the STI and BOS interest, and BOS Multiplier divided by total remuneration.
7 For KMP who were appointed during the current year or ceased during the prior year, the amounts disclosed reflect the relevant service period served as KMP.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
25
EXECUTIVE KMP REMUNERATION FRAMEWORK
FLT’S REMUNERATION PHILOSOPHY
FLT has a simple remuneration system that is tied to its core philosophies and strategic objectives. This remuneration
framework is specifically designed to suit FLT’s goals, although it aligns with market practice by being:
• Competitive, which allows the company to attract and retain high calibre people.
• Aligned with participants’ interests, reflecting responsibilities and rewarding achievement in creating short and long-
term shareholder value.
• Acceptable to shareholders and strongly aligned with their interests.
• Transparent, with clear targets set and achievements against these targets are measurable; and
• Tied to the company’s longer-term objectives, capital management strategies and structures.
Remuneration structures for Executive KMP are also carefully tailored to ensure they include an appropriate mix of:
• Fixed pay; and
• Variable pay with incentives ensuring a strong short and long-term alignment between executive and shareholder
interests.
Measurable, outcome-based KPIs underpin FLT’s STI programs and its overall remuneration framework globally. FLT
believes that if the right outcomes are rewarded via its STIs, the company, its people, its customers and its shareholders will
benefit. FLT’s belief in the value of using quantitative and outcome-based STIs to drive desired outcomes is articulated in
the company’s core philosophies, which are included in this Annual Report.
The company’s philosophies also underline FLT’s belief in the importance of providing its people with ownership
opportunities and the chance “to share in the company’s success through outcome-based incentives, profit share, BOS and
Employee Share Plans”.
Accordingly, ownership opportunities are built into the company’s remuneration structures to encourage FLT’s people at all
levels to behave as long-term stakeholders in the company and to adopt the strategies, disciplines and behaviours that
create longer term value.
REMUNERATION DELIVERY
The graph below sets out the general remuneration structure for Executive KMP, highlighting the remuneration delivery
between cash and equity components and spanning different time horizons, encouraging an ownership mindset and
aligning the interests of Executives with those of our shareholders.
Note that Graham Turner, the Group CEO and Founder, does not participate in the LTRP.
FY24 EXECUTIVE KMP REMUNERATION COMPONENTS
FIXED REMUNERATION
Purpose
To attract and retain high calibre employees capable of delivering business performance.
Components
Fixed remuneration includes cash salary, compulsory employer superannuation or pension
contributions and any salary sacrificed items.
Benchmarking
During FY24, EY was engaged to provide external benchmarking for Taskforce [senior executive]
roles. The review was informed by benchmarking data of ASX-listed companies in two peer
groups:
• A market capitalisation peer group: comprised of companies with a 12-month average market
capitalisation within 50%-200% of FLT’s market capitalisation.
• An industry peer group: comprised of companies within the Consumer Discretionary GICS
sector.
For the CEO, Corporate role based in London, the market data provided was sourced from
publicly disclosed remuneration arrangements for CEOs of organisations listed on the UK AIM
and FTSE SmallCap index.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
26
FY24 EXECUTIVE KMP REMUNERATION COMPONENTS (CONTINUED)
STI
Purpose
Motivate and reward executives for achieving annual business goals and increasing shareholder
value by meeting or exceeding profit targets.
Value
Executive KMP have a maximum annual STI opportunity of 30% of fixed remuneration.
Performance measures Group CEO, CFO and CEO, Supply
Global PBT growth
CEO, Corporate
A combination of global PBT growth, Corporate
business PBT growth and regional (EMEA) PBT growth.
CEO, Leisure
A combination of global PBT growth, Leisure business
PBT growth and regional (Australia) PBT growth.
Delivery
Annual awards are paid in cash, there is currently no deferral.
Clawback
There are currently no clawback provisions. Adjustments can be made to withhold STI awards
prior to payment.
LTRP
Purpose
Assist in the retention of executive talent; enhancing the level of ownership to focus executive
attention on driving sustainable long-term growth; and align the interests of executives with those
of securityholders.
Value
The maximum LTRP opportunity for FY24 was equivalent to:
Instrument
Awards under this plan are made in the form of performance rights. A performance right is a right
to acquire one fully paid FLT security provided the service condition is met.
No dividends/distributions are paid on unvested, or unexercised, LTRP awards.
Grant value / price
The volume weighted average price over the 10 trading days following the release of FLT’s full
year results.
Performance condition
The LTRP is subject to continued service over the performance period. Given its purpose as a
retention tool, There are no performance-related conditions.
Performance period
Performance is measured over a three-year period.
Vesting / delivery
The Board has discretion to issue new securities or buy existing securities on-market.
Termination / forfeiture Resignation or dismissal: all unvested performance rights are forfeited.
Clawback
There are currently no clawback provisions however the Board has overarching discretion over the
LTRP and can “alter, modify, add to or repeal” any provisions of the LTRP Plan Rules.
Hedging
Consistent with the Corporations Act 2001, participants are prohibited from hedging their
unvested performance rights.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
27
LEGACY REMUNERATION ARRANGEMENTS
Post Covid Recovery Plan (PCRP) - no further grants
The PCRP was introduced as a one-off strategic response to the profound impacts that COVID-19 restrictions had on the
business, with a focus on ensuring key executives who were identified as crucial to FLT’s recovery were retained while the
business recovered and during the rebuilding phase.
The final vesting under this plan will occur in August 2024, and no new grants will be made under this plan. Additional
details are available in FLT’s 2023 Annual Report.
Business Ownership Scheme (BOS) Multiplier Program - grandfathered arrangement for Executive KMP
To ensure that leaders of some key businesses remained in their roles for the long-term, the company offered a BOS
Multiplier program, a tailor-made award. Under this program, invited senior executives became entitled to multiples of 5, 10,
and up to 15 times the BOS return in the last full financial year before their BOS note was redeemed, provided they
achieved tenure-related hurdles.
One current Executive KMP, Chris Galanty, continues to participate in the BOS Multiplier program. Mr Galanty’s BOS (CG
BOS) was hibernated for the period 1 January 2020 to 30 June 2022 (CG Hibernation Period). Mr. Galanty elected to repay
the face value of the CG BOS at the end of the Hibernation Period to Flight Centre and the CG BOS (including its relevant
entitlements) recommenced in accordance with its amended and restated terms, in particular:
• if the CG BOS is finally redeemed after its fifth anniversary but before its tenth anniversary, Mr. Galanty will be entitled
to a one-off payment equivalent to the CG BOS return for FY19 multiplied by five, being the applicable redemption
multiple;
• if the CG BOS is finally redeemed after its tenth anniversary but before its fifteenth anniversary, Mr. Galanty will be
entitled to a one-off payment equivalent to the CG BOS return for the last full financial year before the final
redemption date, multiplied by 10, being the applicable redemption multiple;
• if the CG BOS is not redeemed by the end of FY28 (when it must then be redeemed) a final redemption multiple of 15
multiplied by CG BOS return for the last full financial year will be payable; and
• if the CG BOS is finally redeemed after its fifth anniversary but before its fifteenth anniversary (FY28) as a result of Mr.
Galanty transferring into a comparable or more senior role within Flight Centre, an affiliate or a related body corporate
or as a result of the sale of any material and relevant part of the business (collectively the Relevant Actions), then the
redemption multiple payable to Mr. Galanty will be the number of full years the CG BOS note has been held as at the
date of the Relevant Action multiplied by the relevant interest earnings of the CG BOS for the last full financial year
before the redemption date.
The BOS’s Face Value, being the amount paid by the holder to purchase the BOS, is guaranteed – subject to the issue of a
designation notice, it cannot decrease in value – and will always be deducted from the final redemption multiple payment.
Provisions for these future payments are taken up annually and the amounts are shown in the KMP remuneration table.
These provisions can be positive or negative as the company adjusts accruals to meet the anticipated future obligation.
BOS MULTIPLIER PROGRAM
EXECUTIVE KMP
GRANT DATE
VESTED %
FORFEITED %
FINANCIAL
YEARS IN
WHICH BOS
RETURN
MULTIPLE
MAY VEST
MINIMUM
TOTAL BOS
RETURN
MULTIPLE1
MAXIMUM
TOTAL BOS
RETURN
MULTIPLE1
BALANCE AT
30 JUNE
2024²
$
Chris Galanty
1 July 2010
100 %
—
2016 - 2028
5 times
15 times
7,872,507
1 The BOS Holder will be entitled to be paid an amount equivalent to his or her BOS return for the last full financial year before the redemption date, multiplied by the
applicable redemption multiple. The BOS return multiple is dependent on profit during the last full financial year before the date of redemption, neither the minimum nor
maximum amount can be reliably estimated until redeemed.
2. In FY24 Chris Galanty received an early part redemption of AUD $2.8m (£2m). The balance held for C. Galanty as at 30 June 2024 incorporates both a recalculation of the
estimated provision out to FY28 and revaluation for movement in foreign exchange rates.
SERVICE AGREEMENTS
No fixed-term service agreements are in place with FLT’s directors or KMP. Senior executives are bound by independent
and open-ended employment contracts that are reviewed annually.
The company requires KMP to provide at least 12 weeks’ written notice of their intention to leave FLT. If FLT gives notice, it
must also provide at least 12 weeks’ written notice. Termination payments to executives and other employees who are
displaced as a result of their roles becoming redundant are assessed on a case-by-case basis and are capped by law. FLT is
not bound, under the terms of any executive’s employment contract, to provide termination benefits beyond those that are
required by law.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
28
EQUITY INSTRUMENT DISCLOSURES
RIGHTS HELD DURING THE YEAR
Valuation of rights
The fair value of base and matched rights (from Grant 9 there is no split of base and matched rights and participants are
granted rights, referred to as base rights below) under the plan is estimated at the date of grant using a fixed dollar amount
of rights granted for each participant and the Black-Scholes option pricing model. The fair value is allocated equally over the
period from grant date to vesting date and is included in the remuneration report compensation tables. Details of rights
provided as remuneration to KMP are set out below:
LTRP
BASE RIGHTS
MATCHING RIGHTS
GRANT
NUMBER
GRANT DATE DATE/YEAR VESTED AND
EXERCISABLE1
EXPIRY
DATE
VALUE
PER
RIGHT AT
GRANT
DATE2
DATE/YEAR
VESTED AND
EXERCISABLE1
EXPIRY DATE
VALUE PER RIGHT
AT GRANT DATE2
4b
1 July 2018
August 2021
1 July 2030
$54.26 August 2023
1 July 2030
$51.58
5b
1 July 2019
August 2021
1 July 2030
$42.06 August 2024
1 July 2030
$38.84
6
1 July 2020
August 2023
1 July 2030
$11.30 August 2023
1 July 2030
$11.30
6b
1 July 2020
August 2021
1 July 2030
$11.30 August 2023
1 July 2030
$11.30
7
1 July 2021
August 2024
1 July 2030
$17.27 August 2024
1 July 2030
$17.27
8
1 July 2022
August 2025
1 July 2030
$17.02 August 2025
1 July 2030
$17.02
9
1 July 2023
August 2026
1 July 2030
$20.59
PCRP
MATCHING RIGHTS - TRANCHE 1
GRANT
NUMBER
GRANT DATE
DATE/YEAR VESTED AND
EXERCISABLE1
EXPIRY
DATE
VALUE PER
RIGHT AT
GRANT
DATE2
DATE/YEAR
VESTED AND
EXERCISABLE1
EXPIRY DATE
VALUE PER
RIGHT AT
GRANT DATE2
1
29 June 2020
August 2022
1 July 2031
$9.66 August 2023
1 July 2031
$9.25
MATCHING RIGHTS - TRANCHE 2
August 2024
1 July 2031
$8.83
1 The vesting date is the day the Company releases full year financial results to the ASX in the year of vesting.
2 The maximum value of each grant can be calculated by multiplying the fair value of the rights on the grant date by the number of rights granted during the relevant year.
This amount represents the maximum value which will be expensed over the performance period. The minimum value is nil if the service conditions are not met.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
29
RIGHTS HOLDINGS
The number of rights over ordinary FLT shares held during the financial year by FLT’s group KMP, including the number
granted, vested, exercised and forfeited is set out below:
ADAM CAMPBELL
LTRP Grant 9
Base Rights
—
—
27,053
—
—
—
—
27,053
518,510
LTRP Grant 8
Base
—
16,335
—
—
—
—
—
16,335
—
Match
—
16,335
—
—
—
—
—
16,335
—
LTRP Grant 7
Base
—
15,712
—
—
—
—
—
15,712
—
Match
—
15,712
—
—
—
—
—
15,712
—
LTRP Grant 6
Base
—
21,113
—
—
21,113
(21,113)
—
—
—
Match
—
21,113
—
—
21,113
(21,113)
—
—
—
PCRP
Base
70,000
—
—
—
—
(70,000)
—
—
—
Match 1
—
35,000
—
—
35,000
—
35,000
—
—
Match 2
—
35,000
—
—
—
—
—
35,000
—
CHRIS GALANTY
LTRP Grant 9
Base Rights
—
—
13,439
—
—
—
—
13,439
257,572
LTRP Grant 8
Base
—
8,129
—
—
—
—
—
8,129
—
Match
—
8,129
—
—
—
—
—
8,129
—
LTRP Grant 7
Base
—
7,820
—
—
—
—
—
7,820
—
Match
—
7,820
—
—
—
—
—
7,820
—
LTRP Grant 6
Base
—
8,756
—
—
8,756
(8,756)
—
—
—
Match
—
8,756
—
—
8,756
(8,756)
—
—
—
PCRP
Base
70,000
—
—
—
—
(70,000)
—
—
—
Match 1
—
35,000
—
—
35,000
(35,000)
—
—
—
Match 2
—
35,000
—
—
—
—
—
35,000
—
EXECUTIVE
KMP RIGHTS
BALANCE AT 1 JULY 2023
BALANCE AT 30 JUNE
2024
VALUE OF
RIGHTS
GRANTED
DURING
THE
YEAR $
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
30
EXECUTIVE
KMP RIGHTS
BALANCE AT 1 JULY 2023
BALANCE AT 30 JUNE
2024
VALUE OF
RIGHTS
GRANTED
DURING
THE
YEAR $
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
JAMES KAVANAGH
LTRP Grant 9
Base Rights
—
—
13,767
—
—
—
—
13,767
263,854
LTRP Grant 8
Base
—
7,931
—
—
—
—
—
7,931
—
Match
—
7,931
—
—
—
—
—
7,931
—
LTRP Grant 7
Base
—
7,017
—
—
—
—
—
7,017
—
Match
—
7,017
—
—
—
—
—
7,017
—
LTRP Grant 6b
Base
9,429
—
—
—
—
(9,429)
—
—
—
Match
—
9,429
—
—
9,429
(9,429)
—
—
—
LTRP Grant 5b
Base
2,569
—
—
—
—
(2,569)
—
—
—
Match
—
2,569
—
—
2,569
(2,569)
—
—
—
LTRP Grant 4b
Base
1,282
—
—
—
—
(1,282)
—
—
—
Match
—
1,282
—
—
1,282
(1,282)
—
—
—
PCRP
Base
40,000
—
—
—
—
(40,000)
—
—
—
Match 1
—
20,000
—
—
20,000
(20,000)
—
—
—
Match 2
—
20,000
—
—
—
—
—
20,000
—
GREG PARKER (appointed 1 July 2023)
LTRP Grant 9
Base Rights
—
—
13,158
—
—
—
—
13,158
252,198
LTRP Grant 8
Base
—
7,236
—
—
—
—
—
7,236
—
Match
—
7,236
—
—
—
—
—
7,236
—
LTRP Grant 7
Base
—
6,951
—
—
—
—
—
6,951
—
Match
—
6,951
—
—
—
—
—
6,951
—
LTRP Grant 6
Base
—
9,340
—
—
9,340
(9,340)
—
—
—
Match
—
9,340
—
—
9,340
(9,340)
—
—
—
PCRP
Base
20,000
—
—
—
—
(20,000)
—
—
—
Match 1
—
10,000
—
—
10,000
(10,000)
—
—
—
Match 2
—
10,000
—
—
—
—
—
10,000
—
The relevant portion of the expense relating to these rights was recognised during the year ended 30 June 2024. Refer to
note D3.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
31
SHAREHOLDING
The number of ordinary shares held during the financial year by FLT’s directors and KMP is set out below:
2024
BALANCE AT
THE START OF
THE YEAR
RECEIVED ON
THE EXERCISE
OF RIGHTS
ESP
PURCHASED
SHARES
ESP MATCHED
SHARES
VESTED
OTHER
CHANGES
BALANCE AT
THE END OF
THE YEAR
NON EXECUTIVE
DIRECTORS
Gary Smith
25,675
—
—
—
—
25,675
John Eales
13,438
—
—
—
—
13,438
Robert Baker
7,307
—
—
—
—
7,307
Colette Garnsey
7,453
—
—
—
—
7,453
Kirsty Rankin
3,168
—
—
—
—
3,168
EXECUTIVE DIRECTOR
Graham Turner
16,641,081
—
—
—
(1,000)
16,640,081
EXECUTIVE KMP
Adam Campbell¹
21,705
112,226
719
446
(87,226)
47,870
Chris Galanty
589
122,512
—
—
(45,000)
78,101
James Kavanagh¹
6,544
86,560
1,474
828
—
95,406
Greg Parker1
32,015
57,874
590
165
—
90,644
1 A. Campbell, J. Kavanagh, and G. Parker participated in the ESP and were issued with ordinary shares under the same terms and conditions as all other ESP participants.
At period end A. Campbell held 541 (2023: 632), J. Kavanagh held 1,550 (2023: 1,704), G. Parker 445 (2023: 341) held conditional matched rights that had been granted
under the ESP but had not yet vested.
Employee Share Plan (ESP) / General Terms
Under the ESP, eligible employees are granted a conditional right to one matched share for every two shares purchased (for
cash consideration), subject to vesting conditions.
To receive the matched shares, participants must hold the acquired shares for a period of two years and one month and still
be employed with FLT at the end of that time. If acquired shares are sold before the end of the vesting period, conditional
rights to the matched shares are forfeited.
The matched shares may be issued by FLT, purchased on-market or allocated from treasury shares.
OPTIONS
No options (i.e. a right to acquire a security upon payment of an exercise price) were granted as remuneration during FY24
and no unvested or unexercised options are held by Executive KMP as at 30 June 2024.
REMUNERATION GOVERNANCE
FLT’s RNC oversees and monitors executive remuneration and provides specific recommendations on remuneration and
incentive structures, policies and practices and other employment terms for directors and senior executives as covered
under the RNC Charter which is available on FLT’s website.
To ensure independent remuneration-setting processes and outcomes, the Committee is comprised solely of NEDs, all of
whom are, in the Board's opinion, independent. Other Directors and/or members of the senior management team may
attend RNC meetings to provide information, reports, and updates to the Committee.
The RNC is supported by local remuneration committees that operate within FLT’s key geographic divisions. These local
committees generally meet quarterly and include the local MD, CFO and HR (People & Culture) leader.
The RNC may consult external remuneration advisors as required. In FY24, EY was engaged to conduct a benchmarking
exercise for Taskforce roles. The information provided was used as an input into the review of the Executive KMP
remuneration. No remuneration recommendations were provided by EY or any other advisor during the year.
Security Trading Policy
FLT has a share trading policy which prohibits directors, senior executives and their closely connected persons from entering
into margin loans, hedging or any other arrangement that would have the effect of limiting their exposure to risk in relation
to an element of their remuneration that has not yet vested or has vested but remains subject to a holding lock. The policy is
available on FLT’s website at https://www.fctgl.com/investors#governance-documents.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
32
NON-EXECUTIVE DIRECTOR REMUNERATION
To preserve independence, NEDs receive fixed fees that reflect the positions’ demands and responsibilities. NED
remuneration is not linked to performance, and NEDs are not eligible to participate in any incentive schemes or employee
equity plans.
FLT’s Constitution provides that NEDs may determine their own remuneration, but the total amount provided to all
Directors (not including the Group CEO and any other Executive Directors) must not exceed the sum agreed by
securityholders at a general meeting. The maximum aggregate remuneration of $1.1m per annum was approved by
shareholders at the 2018 AGM.
LOANS TO KEY MANAGEMENT PERSONNEL AND THEIR RELATED PARTIES
There were no loans provided to key management personnel and their related parties during the period (2023: $nil).
End of remuneration report.
DIRECTORS’ REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
33
INDEMNIFICATION AND INSURANCE OF OFFICERS
An Officers' Deed of Indemnity, Access and Insurance is in place for directors, KMP, the company secretary and some other
executives. FLT has agreed to provide indemnification to the fullest extent permitted by law. Liabilities covered include legal
costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their
capacity as officers of the company or its controlled entities. Disclosure of premiums paid is prohibited under the insurance
contract. No payment has been made to indemnify a director, KMP, the company secretary or other executives during or
since the financial year.
INDEMNIFICATION OF AUDITOR
To the extent permitted by law, FLT has agreed to indemnify its auditor, Ernst & Young, as part of the terms of its audit
engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has
been made to indemnify Ernst & Young during or since the financial year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of
the Corporations Act 2001.
NON-AUDIT SERVICES
The company may decide to employ the auditor on assignments additional to its statutory audit duties where the auditor's
expertise and experience with the company and/or the group are important.
Details of the amounts paid or payable to the auditor (Ernst & Young) for audit and non-audit services provided to the
consolidated group during the year are set out in note F13.
The board has considered the position and, in accordance with the advice received from the audit and risk committee, is
satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The directors are satisfied that the auditor’s provision of non-audit services did not
compromise the Act’s independence requirements because none of the services undermine the general principles relating
to auditor independence as set out in APES110 Code of Ethics for Professional Accountants.
The audit and risk committee reviewed all non-audit services to ensure they did not impact the auditor’s impartiality
and objectivity.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration, as required under section 307C of the Corporations Act 2001, is set out
on page 35.
ROUNDING OF AMOUNTS
The company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments
Commission, relating to the rounding off of amounts in the directors' report. Amounts in the directors' report have been
rounded off in accordance with that Instrument to the nearest thousand dollars or, in certain cases, to the nearest dollar.
This report is made in accordance with a directors’ resolution.
G.F. Turner
Director
BRISBANE
28 August 2024
DIRECTORS REPORT CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
34
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
GPO Box 7878 Brisbane QLD 4001
Tel: +61 7 3011 3333
Fax: +61 7 3011 3100
ey.com/au
Auditor’s independence declaration to the directors of Flight Centre Travel
Group Limited
As lead auditor for the audit of the financial report of Flight Centre Travel Group Limited for the
financial year ended 30 June 2024, I declare to the best of my knowledge and belief, there have been:
a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b.
No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Flight Centre Travel Group Limited and the entities it controlled during
the financial year.
Ernst & Young
Alison de Groot
Partner
28 August 2024
FOR THE YEAR ENDED 30 JUNE
2024
2023
NOTES
$'000
$'000
Revenue
A2
2,710,748
2,280,782
Other income
A3
99,920
43,389
Share of loss of joint ventures and associates
E1
(2,435)
(4,084)
Employee benefits
F1
(1,420,668)
(1,297,993)
Sales and marketing
(170,929)
(139,905)
Tour, hotel & cruise operations - cost of sales
(150,067)
(99,497)
Depreciation and amortisation
(159,326)
(142,093)
Finance costs
A4
(79,898)
(84,795)
Impairment (charge) / reversal
A5/F7
(39,850)
328
Other expenses
A4
(567,787)
(485,673)
Profit before income tax
219,708
70,459
Income tax expense
F12
(80,553)
(23,047)
Profit after income tax
139,155
47,412
Profit attributable to
Company owners
139,638
47,461
Non-controlling interests
(483)
(49)
139,155
47,412
Earnings per share for profit attributable to the ordinary equity holders of the company:
CENTS
CENTS
Basic earnings per share
F2
63.7
23.1
Diluted earnings per share
F2
50.2
22.5
The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.
STATEMENT OF PROFIT OR LOSS
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
36
FOR THE YEAR ENDED 30 JUNE
2024
2023
NOTES
$'000
$'000
Profit after income tax
139,155
47,412
OTHER COMPREHENSIVE INCOME
Items that have been reclassified to profit or loss:
Hedging Gain / (Loss) reclassified to profit or loss
F11
3,271
(186)
Items that may be reclassified to profit or loss:
Changes in the fair value of cash flow hedges
F11
(5,507)
966
Gain / (Loss) on net investment hedges
F11
804
(4,963)
Net exchange differences on translation of foreign operations
F11
(8,969)
43,317
Income tax on items of other comprehensive income
F12
457
1,255
Total other comprehensive (loss) / income
(9,944)
40,389
Total other comprehensive income
129,211
87,801
Attributable to
Company owners
129,694
87,850
Non-controlling interests
(483)
(49)
129,211
87,801
The above consolidated statement of other comprehensive income should be read in conjunction with the
accompanying notes.
STATEMENT OF OTHER COMPREHENSIVE INCOME
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL
GROUP
37
FOR THE YEAR ENDED 30 JUNE
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
NOTES
$'000
$'000
Receipts from customers¹
2,835,779
2,117,217
Payments to suppliers and employees¹
(2,366,367)
(1,947,811)
Royalties received
375
424
Interest received
36,288
29,504
Interest paid (non-leases)
(36,562)
(43,720)
Interest paid (leases)
F7
(9,789)
(7,295)
Government subsidies received
893
2,482
Income taxes paid
(49,343)
(15,720)
Income taxes refunded
10,206
21,089
Net cash inflow from operating activities
B1
421,480
156,170
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiaries, net of cash acquired
—
(172,716)
Payments for property, plant and equipment
F6
(21,708)
(21,379)
Payments for intangibles
A5
(73,896)
(70,652)
Payments for the purchase of financial asset investments
(99)
—
Proceeds from financial asset investments
20,000
24,291
Net cash outflow from investing activities
(75,703)
(240,456)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
B4
3,217
254,420
Repayment of borrowings
B4
(252,092)
(253,286)
Buyback of convertible notes
B5
(84,153)
—
Payment of principal on lease liabilities
F7
(90,551)
(99,973)
Lease surrender payments
F7
(236)
(661)
Proceeds from issue of shares
7,532
241,159
Payments for purchase of shares on market
(10,722)
(6,539)
Dividends paid to company owners
(61,591)
—
Dividends paid to non-controlling shareholders in subsidiaries
(408)
(1,009)
Net cash (outflow) / inflow from financing activities
(489,004)
134,111
Net (decrease) / increase in cash held
(143,227)
49,825
Cash and cash equivalents at the beginning of the financial year
1,278,936
1,210,257
Effects of exchange rate changes on cash and cash equivalents
1,156
18,854
Cash and cash equivalents at end of the financial year
B1
1,136,865
1,278,936
1 Including consumption tax.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
STATEMENT OF CASH FLOWS
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
38
AS AT 30 JUNE
ASSETS
2024
2023
Current assets
NOTES
$'000
$'000
Cash and cash equivalents
B1
1,138,142
1,328,438
Financial asset investments
B2
10,007
20,227
Trade receivables
F3
885,348
834,765
Contract assets
F4
300,642
317,578
Other assets
F5
103,701
82,488
Other financial assets
C3
22,068
25,452
Current tax receivables
18,697
14,602
Derivative financial instruments
C2
3,988
6,490
Total current assets
2,482,593
2,630,040
Non-current assets
Financial asset investments
B2
7,729
14,656
Property, plant and equipment
F6
62,599
66,653
Intangible assets
A5
1,025,048
1,054,489
Right of use asset
F7
201,472
196,531
Other assets
F5
26,702
21,608
Other financial assets
C3
1,056
3,103
Investments in joint ventures and associates
E1
43,164
45,599
Deferred tax assets
F12
363,918
403,748
Total non-current assets
1,731,688
1,806,387
Total assets
4,214,281
4,436,427
LIABILITIES
Current liabilities
Trade and other payables
F8
1,765,626
1,684,600
Contract liabilities
F9
90,994
71,997
Financial liabilities
A7
3,683
3,908
Lease liabilities
F7
80,752
81,869
Borrowings
B4
11,202
57,477
Convertible notes
B5
280,825
—
Provisions
F10
52,793
55,334
Current tax liabilities
5,336
2,295
Derivative financial instruments
C2
6,089
9,809
Total current liabilities
2,297,300
1,967,289
Non-current liabilities
Trade and other payables
2,154
2,930
Contract liabilities
F9
32,135
27,077
Financial liabilities
A7
5,915
10,573
Lease liabilities
F7
173,813
177,554
Borrowings
B4
102,561
352,893
Convertible notes
B5
338,999
688,940
Provisions
F10
26,086
27,335
Deferred tax liabilities
F12
5,798
9,979
Derivative financial instruments
C2
26,317
35,360
Total non-current liabilities
713,778
1,332,641
Total liabilities
3,011,078
3,299,930
Net assets
1,203,203
1,136,497
EQUITY
Contributed equity
D4
1,437,888
1,374,592
Treasury shares
D4
(27,800)
(14,748)
Reserves
F11
131,969
193,068
Retained profits / (accumulated losses)
(339,777)
(417,824)
Equity attributable to the Company owners
1,202,280
1,135,088
Non-controlling interests
923
1,409
Total equity
1,203,203
1,136,497
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
BALANCE SHEET
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
39
FOR THE YEAR ENDED 30 JUNE
CONTRIBUTED
EQUITY
TREASURY
SHARES
RESERVES
RETAINED
PROFITS
TOTAL
NON-
CONTROLLING
INTEREST
TOTAL
EQUITY
NOTES
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 July 2022
1,105,711
(1,055)
136,460
(465,285)
775,831
1,631
777,462
Profit for the year
—
—
—
47,461
47,461
(49)
47,412
Other comprehensive income
—
—
40,389
—
40,389
—
40,389
Total comprehensive income for the year
—
—
40,389
47,461
87,850
(49)
87,801
Transactions with owners in their capacity as owners:
Non-controlling interest recognised
—
—
—
—
—
(173)
(173)
Institutional placement and share purchase plan, net of
transaction costs and tax
D4
236,399
—
—
—
236,399
—
236,399
Employee share-based payments
D4/F11
32,482
—
16,219
—
48,701
—
48,701
Treasury shares
D4
—
(13,693)
—
—
(13,693)
—
(13,693)
Balance at 30 June 2023
1,374,592
(14,748)
193,068
(417,824)
1,135,088
1,409
1,136,497
Profit / (loss) for the year
—
—
—
139,638
139,638
(483)
139,155
Other comprehensive income
—
—
(9,944)
—
(9,944)
—
(9,944)
Total comprehensive income for the year
—
—
(9,944)
139,638
129,694
(483)
129,211
Transactions with owners in their capacity as owners:
Non-controlling interest reserve
—
—
—
—
—
(3)
(3)
Employee share-based payments
D4/F11
63,296
—
(34,520)
—
28,776
—
28,776
Financial assets at FVOCI reserve
F11
—
—
(286)
—
(286)
—
(286)
Treasury shares
D4
—
(13,052)
—
—
(13,052)
—
(13,052)
Equity component of convertible bond, net of tax
B5/F12
—
—
(16,349)
—
(16,349)
—
(16,349)
Dividends provided or paid for
B7
—
—
—
(61,591)
(61,591)
—
(61,591)
Balance at 30 June 2024
1,437,888
(27,800)
131,969
(339,777)
1,202,280
923
1,203,203
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
40
SIGNIFICANT MATTERS
42
A
FINANCIAL OVERVIEW
43
A1
Segment information
43
A2
Revenue
49
A3
Other income
50
A4
Expenses
51
A5
Intangible assets
52
A6
Business combinations
54
A7
Financial liabilities
55
B
CASH MANAGEMENT
56
B1
Cash and cash equivalents
56
B2
Financial asset investments
57
B3
Cash and financial asset investments– financial risk
management
58
B4
Borrowings
59
B5
Convertible notes
61
B6
Ratios
62
B7
Dividends
63
C
FINANCIAL RISK MANAGEMENT
64
C1
Financial risk management
64
C2
Derivative financial instruments
67
C3
Other financial assets
72
D
REWARD AND RECOGNITION
73
D1
Key management personnel
73
D2
Business ownership scheme (BOS)
74
D3
Share-based payments
75
D4
Contributed equity and treasury shares
82
E
RELATED PARTIES
83
E1
Investments accounted for using the equity method
83
E2
Related party transactions
84
F
OTHER INFORMATION
86
F1
Employee benefits expense
86
F2
Earnings per share
87
F3
Trade receivables
88
F4
Contract assets
90
F5
Other assets
90
F6
Property, plant and equipment
91
F7
Leases
92
F8
Trade and other payables
95
F9
Contract liabilities
96
F10
Provisions
97
F11
Reserves
98
F12
Tax
99
F13
Auditor's remuneration
101
G
GROUP STRUCTURE
102
G1
Subsidiaries
102
G2
Deed of cross guarantee
103
G3
Parent entity financial information
105
H
UNRECOGNISED ITEMS
107
H1
Commitments
107
H2
Contingencies
107
H3
Events occurring after the end of the reporting period
107
I
SUMMARY OF ACCOUNTING POLICIES
108
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
41
SIGNIFICANT MATTERS
The following significant events and transactions occurred during or after the end of the reporting period:
CAPITAL MANAGEMENT
Partial repurchase of convertible notes
On 10 October 2023, FLT repurchased convertible notes with a total face value of $75,000,000 in accordance with its new
capital management policy, which was announced in August 2023. Buy back of these notes resulted in an accounting gain
of $10,982,000.
The notes were repurchased on the open market and are part of the $400,000,000, 2.5% convertible notes due in November
2027. Refer to note B5.
Repayment of debt facility
During the period, FLT repaid $250,000,000 of the $350,000,000 syndicated debt facility (SFA). The facility was refinanced in
February 2024 and is now unsecured. The undrawn amount at 30 June 2024 is $250,000,000.
Lenders agreed to refinance the $350,000,000 SFA and extend its term to April 2026. Refer to note B4.
UNDER PERFORMING BUSINESSES CLOSED OR RESTRUCTURED DURING THE PERIOD
During the year it was announced that FLT would close its US wholesale business, GOGO. Further, FLT’s Mexico-based
Destination Management Company was closed in June 2024 following a detailed review. The results of both businesses and
associated closure costs have been considered underlying adjustments.
During the period it was decided to restructure StudentUniverse under FLT’s Jetmax online travel agency group to gain
synergies across the brands. A non-cash impairment to goodwill of $19,484,000, indefinite life brand names $2,108,000 and
software of $14,782,000 has been recorded. This non-cash impairment has been considered an underlying adjustment,
along with the costs of restructure.
MATTERS SUBSEQUENT TO THE END OF THE REPORTING PERIOD
On 28 August 2024, FLT’s directors declared a final dividend for the year ended 30 June 2024. Refer to note B7 for details.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
42
A
FINANCIAL OVERVIEW
This section provides information that is most relevant to explaining the group's performance during the year, and where
relevant, the accounting policies that have been applied and significant estimates and judgements made.
A1
Segment information
A2
Revenue
A3
Other income
A4
Expenses
A5
Intangible assets
A6
Business combinations
A7
Financial liabilities
A1
SEGMENT INFORMATION
(A)
IDENTIFICATION AND DESCRIPTION OF SEGMENTS
FLT has identified its operating segments based on the internal reports that are reviewed and used by the board and global
Taskforce in assessing performance and in determining resource allocation.
The company’s executive team (chief operating decision makers – CODM) currently consists of the following members:
• Managing director
• Chief financial officer
• Chief executive officer – Leisure
• Chief executive officer – Corporate; and
• Chief executive officer – Supply
The executive team, together with the below regional Managing Directors (MDs) form the global Taskforce:
• MD – The Americas; and
• MD – EMEA
• MD - Asia; and
• Chief people officer (CPO)
While the MD’s and CPO play a key role in setting the strategy, they report to the CEOs who then allocate resources and
assess performance. Therefore the MDs and CPO are not considered as part of the CODM.
Supply is not considered a reportable segment due to it being the procurement function for the Corporate and Leisure
segments. The reportable segments are consistent to the prior year - Leisure, Corporate and Other.
LEISURE
The Leisure segment combines the retail store front and online brands for retail customers, luxury travel brands Travel
Associates and Scott Dunn, Independent agents and complementary offerings.
CORPORATE
The Corporate segment includes the FCM brand, Corporate Traveller and other Corporate customer brands.
OTHER
Other segment includes Brisbane-based and other head office support businesses, including Supply, that support the global
network (including global head office teams), and the share of profit or loss relating to the investment in Pedal Group. Also
included is Travel Management Services which incorporates touring, ground-handling and hotels.
The group consolidation adjustments are also included in this segment.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
43
A1
SEGMENT INFORMATION (CONTINUED)
(B)
MAJOR CUSTOMERS
FLT provides services to and derives revenue from a number of customers. The company does not derive more than 10% of
total consolidated revenue from any one customer.
(C)
UNDERSTANDING THE SEGMENT RESULT
Segment information is presented below in the manner in which it is presented to the CODMs and upon which they make
their decisions.
SEGMENT REVENUE
The measurement of segment revenue has not changed since 30 June 2023. Refer to note A2 for details of revenue policies.
Sales between segments are carried out at arm's length and are eliminated on consolidation.
ALTERNATIVE PROFIT MEASURES
In addition to using profit as a measure of the group and its segments’ financial performance, FLT uses EBITDA, underlying
EBITDA and underlying PBT as this information is presented and used by the CODMs. These unaudited measures are not
defined under IFRS and are, therefore, termed “non-IFRS” measures.
Within this note, Earnings before net interest, tax, depreciation and amortisation, royalty and intercompany service fee
(EBITDA), Underlying earnings before net interest, tax, depreciation and amortisation, royalty and intercompany service fee
(Underlying EBITDA), Underlying PBT, royalty and intercompany service fee (Underlying PBT) are non-IFRS measures.
A reconciliation of these non-IFRS measures and specific items to the nearest measure prepared in accordance with IFRS is
included in the tables on the following pages.
SEGMENT ASSETS AND LIABILITIES
The amounts provided to the board and global task force in respect of total assets and total liabilities are measured in a
manner consistent with that of the financial statements. These reports do not allocate total assets or total liabilities based on
the operations of each segment.
FLT has not disclosed non-current assets by segment as this information is not provided to or reviewed by the chief
operating decision makers nor produced for other reasons and, as such, the cost of developing and providing this
information exceeds the attributable benefits.
TOTAL TRANSACTION VALUE (TTV)
TTV is unaudited, non-IFRS financial information and does not represent revenue in accordance with Australian Accounting
Standards. TTV represents the price at which travel products and services have been sold across the group’s various
operations, both as agent for various airlines and other service providers and as principal, plus revenue from other sources.
TTV has been reduced by refunds. FLT’s revenue is, therefore, derived from TTV.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
44
A1
SEGMENT INFORMATION (CONTINUED)
(D)
SEGMENT INFORMATION PRESENTED TO THE BOARD OF DIRECTORS AND GLOBAL TASK FORCE
The segment information provided to the board and task force for the reportable segments for the years ended 30 June
2024 and 30 June 2023 is shown in the table below and on page 46.
LEISURE
CORPORATE
OTHER
TOTAL
30 JUNE 2024
$'000
$'000
$'000
$'000
Segment information
TTV¹
11,031,393
12,105,285
607,783
23,744,461
Agency revenue from the provision of travel
1,242,793
1,082,442
32,638
2,357,873
Principal revenue from the provision of travel
83,994
24,616
8,250
116,860
Revenue from tour, hotel & cruise operations
15,786
—
188,998
204,784
Revenue from other businesses
9,222
4,908
17,101
31,231
Total revenue from contracts with customers
1,351,795
1,111,966
246,987
2,710,748
EBITDA¹
237,351
228,478
(43,270)
422,559
Depreciation and amortisation
(85,457)
(48,340)
(25,529)
(159,326)
Interest income
—
—
36,373
36,373
Interest expense
(7,965)
(1,900)
(70,033)
(79,898)
Net profit / (loss) before tax, royalty and intercompany
service fee
143,929
178,238
(102,459)
219,708
Royalty
—
—
—
—
Intercompany service fee
—
—
—
—
Net profit / (loss) before tax
143,929
178,238
(102,459)
219,708
Reconciliation of EBITDA to Underlying EBITDA
EBITDA¹
237,351
228,478
(43,270)
422,559
SU Impairment (non-cash), restructuring costs and other
head office lease impairment
39,524
8,798
1,033
49,355
US Wholesale (GoGo) trading loss & closure costs2
—
—
17,207
17,207
Discova Americas trading loss & closure costs3
—
—
9,998
9,998
Employee retention plans
4,400
5,058
79
9,537
Productive Operations initiative4
—
7,105
—
7,105
Gain on Buy-back and remeasurement of convertible notes
—
—
(48,022)
(48,022)
Supplier loss5
—
—
10,723
10,723
Underlying EBITDA¹
281,275
249,439
(52,252)
478,462
Amortisation of convertible notes
—
—
30,816
30,816
Productive Operations initiative4
—
12,046
—
12,046
Discova Americas trading loss & closure costs3
—
—
1,561
1,561
US Wholesale (GoGo) trading loss & closure costs2
—
—
351
351
Underlying PBT¹
187,853
211,245
(78,713)
320,385
1 TTV, EBITDA, underlying EBITDA and underlying PBT are unaudited, non-IFRS measures.
2 Closure of US Wholesale business in February 2024
3 Closure of Discova Americas business in June 2024.
4 Productive Operations initiative is a corporate business transformation project focused on lowering costs and growing income through automation and personal service.
As part of the Productive Operations initiative, FLT has invested in the development of software assets (in-house and software as a service) and these activities will result in
the retirement of certain legacy systems.
5 Supplier loss relates to expected credit loss of $10.7m on contract assets due to deteriorated creditworthiness of REX airlines as of 30 June 2024.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
45
A1
SEGMENT INFORMATION (CONTINUED)
RESTATED1
LEISURE4
CORPORATE
OTHER
TOTAL
30 JUNE 2023
$'000
$'000
$'000
$'000
Segment information
TTV2
10,005,615
11,005,893
927,086
21,938,594
Agency revenue from the provision of travel
1,052,707
961,136
26,602
2,040,445
Principal revenue from the provision of travel
54,519
12,705
6,299
73,523
Revenue from tour, hotel & cruise operations
2,817
43
132,903
135,763
Revenue from other businesses
10,753
4,567
15,731
31,051
Total revenue from contracts with customers
1,120,796
978,451
181,535
2,280,782
EBITDA2
156,922
176,627
(67,397)
266,152
Depreciation and amortisation
(73,228)
(41,719)
(27,146)
(142,093)
Interest income
2,442
4,273
24,480
31,195
Interest expense
(8,521)
(6,376)
(69,898)
(84,795)
Net profit before tax, royalty and intercompany service
fee
77,615
132,805
(139,961)
70,459
Royalty
—
—
—
—
Intercompany service fee
—
—
—
—
Net profit before tax
77,615
132,805
(139,961)
70,459
Reconciliation of EBITDA to Underlying EBITDA
EBITDA2
156,922
176,627
(67,397)
266,152
Acquisition transaction costs - Scott Dunn3
—
—
6,065
6,065
COVID-19 ROUA impairment / (reversal)
1,369
(261)
(1,437)
(329)
Employee retention plans
13,324
13,756
2,677
29,757
Underlying EBITDA2
171,615
190,122
(60,092)
301,645
Amortisation of convertible notes
—
—
32,877
32,877
Underlying PBT2
92,308
146,300
(99,779)
138,829
1 Amortisation of convertible notes has been included as an underlying adjustment in the current period, with prior period comparative amounts restated.
2 TTV, EBITDA, underlying EBITDA and underlying PBT are unaudited, non-IFRS measures.
3 Acquisition transaction costs are considered head office support expenses and are therefore in Other Segment.
4 The results of the Scott Dunn acquisition made during the period are shown in the Leisure segment.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
46
A1
SEGMENT INFORMATION (CONTINUED)
(E)
ADDITIONAL INFORMATION PRESENTED BY GEOGRAPHIC AREA
In addition to the segment information provided above, the below table presents geographic revenue disclosures and also
PBT information which has been included to aid user understanding:
AUSTRALIA
& NZ
AMERICAS
EMEA
ASIA
OTHER
SEGMENT
TOTAL
30 JUNE 2024
$'000
$'000
$'000
$'000
$'000
$'000
Segment information
TTV¹
12,642,807 5,023,990 4,199,976 1,527,522
350,166 23,744,461
Agency revenue from the provision of travel
1,280,411
501,703
460,368
99,677
15,714
2,357,873
Principal revenue from the provision of travel
85,864
12,855
6,118
4,312
7,711
116,860
Revenue from tour, hotel & cruise operations
15,786
—
—
—
188,998
204,784
Revenue from other businesses
15,782
2,357
3,323
3,160
6,609
31,231
Total revenue from contracts with customers
1,397,843
516,915
469,809
107,149
219,032 2,710,748
EBITDA¹
327,260
20,413
96,341
17,533
(38,988)
422,559
Depreciation and amortisation
(70,314)
(22,362)
(38,149)
(5,993)
(22,508)
(159,326)
Interest income
11,767
30,739
44,338
4,928
(55,399)
36,373
Interest expense
(15,476)
(31,070)
(25,478)
(10,173)
2,299
(79,898)
Net profit / (loss) before tax, royalty and
intercompany service fee
253,237
(2,280)
77,052
6,295
(114,596)
219,708
Royalty
10,943
(2,875)
(7,241)
(888)
61
—
Intercompany service fee
2,783
(2,234)
609
(1,113)
(45)
—
Net profit / (loss) before tax
266,963
(7,389)
70,420
4,294
(114,580)
219,708
Reconciliation of EBITDA to Underlying EBITDA
EBITDA¹
327,260
20,413
96,341
17,533
(38,988)
422,559
SU Impairment (non-cash), restructuring costs and
other head office lease impairment
1,033
39,524
8,798
—
—
49,355
US Wholesale (GoGo) trading loss & closure costs2
—
17,207
—
—
—
17,207
Discova Americas trading loss & closure costs3
—
—
—
—
9,998
9,998
Employee retention plans
3,470
2,037
1,831
1,062
1,137
9,537
Productive Operations4
—
—
—
1,463
5,642
7,105
Gain on Buy-back and remeasurement of convertible
notes
—
—
—
—
(48,022)
(48,022)
Supplier loss5
—
—
—
—
10,723
10,723
Underlying EBITDA¹
331,763
79,181
106,970
20,058
(59,510)
478,462
Amortisation of convertible notes
—
—
—
—
30,816
30,816
Productive Operations4
—
—
12,046
—
—
12,046
Discova Americas trading loss & closure costs3
—
—
—
—
1,561
1,561
US Wholesale (GoGo) trading loss & closure costs2
—
351
—
—
—
351
Underlying PBT¹
257,740
56,839
99,727
8,820
(102,741)
320,385
1 TTV, EBITDA, underlying EBITDA and underlying PBT are unaudited, non-IFRS measures. Underlying EBITDA and underlying PBT exclude royalty and intercompany
service fee.
2 Closure of US Wholesale business in February 2024.
3 Closure of Discova Americas business in June 2024.
4 Productive Operations initiative is a business transformation project focused on lowering costs and growing income through automation and personal service. As part of
the Productive Operations initiative, FLT has invested in the development of software assets (in-house and software as a service) and these activities will result in the
retirement of certain legacy systems.
5 Supplier loss relates to expected credit loss for the voluntary administration of REX airlines.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
47
A1
SEGMENT INFORMATION (CONTINUED)
RESTATED1
AUSTRALIA
& NZ AMERICAS4
EMEA4
ASIA4
OTHER
SEGMENT
TOTAL
30 JUNE 2023
$'000
$'000
$'000
$'000
$'000
$'000
Segment information
TTV2
11,482,128 4,777,287 3,811,044 1,621,511
246,624 21,938,594
Agency revenue from the provision of travel
1,079,965
467,501
398,272
84,137
10,570
2,040,445
Principal revenue from the provision of travel
55,658
8,806
3,230
1,823
4,006
73,523
Revenue from tour, hotel & cruise operations
2,817
—
—
43
132,903
135,763
Revenue from other businesses
14,296
4,665
2,254
2,106
7,730
31,051
Total revenue from contracts with customers
1,152,736
480,972
403,756
88,109
155,209 2,280,782
EBITDA2
216,382
44,190
74,876
2,895
(72,191)
266,152
Depreciation and amortisation
(79,872)
(21,554)
(21,948)
(4,647)
(14,072)
(142,093)
Interest income
7,535
16,846
20,858
1,218
(15,262)
31,195
Interest expense
(11,133)
(20,867)
(8,819)
(5,769)
(38,207)
(84,795)
Net profit / (loss) before tax, royalty and
intercompany service fee
132,912
18,615
64,967
(6,303)
(139,732)
70,459
Royalty
6,426
62
(6,488)
—
—
—
Intercompany service fee
2,948
995
(3,943)
—
—
—
Net profit / (loss) before tax
142,286
19,672
54,536
(6,303)
(139,732)
70,459
Reconciliation of EBITDA to Underlying EBITDA
EBITDA2
216,382
44,190
74,876
2,895
(72,191)
266,152
Acquisition transaction costs - Scott Dunn3
—
—
—
—
6,065
6,065
COVID-19 ROUA impairment / (reversal)
(861)
367
178
—
(13)
(329)
Employee retention plans
10,507
4,947
6,580
2,327
5,396
29,757
Underlying EBITDA2
226,028
49,504
81,634
5,222
(60,743)
301,645
Amortisation of convertible notes
—
—
—
—
32,877
32,877
Underlying PBT2
142,558
23,929
71,725
(3,976)
(95,407)
138,829
1 Amortisation of convertible notes has been included as an underlying adjustment in the current period, with prior period comparative amounts restated.
2 TTV, EBITDA, underlying EBITDA and underlying PBT are unaudited, non-IFRS measures. Underlying EBITDA and underlying PBT exclude royalty and intercompany
service fee.
3 Acquisition transaction costs are considered head office support expenses and are therefore in the Other segment.
4 The results of the Scott Dunn acquisition made during the period are shown in the Americas, EMEA and Asia segments.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
48
A2
REVENUE
2024
2023
$'000
$'000
Agency revenue from the provision of travel
2,357,873
2,040,445
Principal revenue from the provision of travel
116,860
73,523
Revenue from tour, hotel & cruise operations
204,784
135,763
Revenue from other businesses
31,231
31,051
Total revenue from contracts with customers
2,710,748
2,280,782
Additional disaggregation of revenue by geographic region is presented in note A1 Segment Information.
ACCOUNTING POLICY
REVENUE FROM CONTRACTS WITH CUSTOMERS
AGENCY REVENUE FROM THE PROVISION OF TRAVEL
Revenue is generated when FLT, acting as an agent, arrange and book travel and travel related products to be provided by
suppliers to retail and corporate consumers. The supplier of the travel products is the principal in the wider travel sales
transaction. From FLT's perspective (under AASB 15), the supplier of the travel products is the customer in the
agency relationship.
The service is paid for in a variety of ways, including guaranteed base payments, commissions, mark-ups, transaction fees,
other ancillary fees and in the case of cancelled travel, cancellation fees. Rebates are received for using travel consolidator
systems known as Global Distribution Systems (GDS) to access and book travel supplier products. In addition, volume
incentives are received from suppliers for achieving annual targets.
Guaranteed base payments, commission, mark-ups and transaction fees are paid for and received at the time of booking.
Rebates and volume incentive payments received will vary depending on the terms of the contract. Receipt of payment can
vary between upfront to post contract completion once availed data is known.
Revenue is recognised over time as the supplier of the travel products (the customer in the agency relationship under AASB
15) simultaneously receives and consumes the benefit of the travel agency services. Practically revenue is recognised when
the booking is finalised as this is when the performance obligation is satisfied.
The revenue is variable, however it is not subject to material constraints, except for volume incentives which are recorded by
applying the following:
• Year-end differences – judgements and estimation techniques are required to determine revenue from consumers
anticipated to travel over the remaining contract year and the associated incentive rate applicable to these forecast
levels. A combination of historical data and actual ticketed data from external sources is used to predict the
anticipated travel revenue and associated incentive rate.
• Utilisation rates – the likelihood of the consumer cancelling the travel prior to departure.
• Volume revenue has been booked to the extent of flown / availed revenue at guaranteed rates or expected incentive
rates.
Except as noted above, the travel supplier, as principal, is responsible for refunds to the front end customer, not FLT
as agent.
FLT have applied practical expedient AASB 15(121) where revenue to be recognised in future periods, for unsatisfied or
partially satisfied performance obligations as at reporting date, is not disclosed as the performance obligation will be
completed within 12 months or less.
Supplier incentives and lump-sum revenue
From time-to-time, incentives or lump sum amounts are received from suppliers. The supplier of the travel products is the
customer in the agency relationship under AASB 15. The recognition pattern is dependent on the specific terms of each
contract. The revenue is only recognised upfront where there has been a distinct service transferred upfront, otherwise it is
recognised over the term of the contract in line with the delivery of the performance obligation. The revenue can be either
fixed or variable and is constrained where contract terms require the supplier to be refunded in part or full upon termination
of the contract.
Associated contract costs may be eligible for capitalisation as fulfilment assets and amortised over the same period.
Lump sum deferred revenue is recognised over the contract terms which typically range between 1 – 10 years.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
49
A2
REVENUE (CONTINUED)
PRINCIPAL REVENUE FROM THE PROVISION OF TRAVEL
Revenue is generated when FLT, acting as principal, provides travel related products and services to customers. This
includes products and services provided by our currency exchange business Travel Money, advertising revenue, hotel
management revenue and conference revenue. Revenue is recognised when the performance obligation has been satisfied.
The revenue may be variable or fixed and is typically recognised over time as the service is provided. The most likely
method is used for variable revenue recognition. The revenue is not subject to material constraints and it is recognised only
as performance obligations have been satisfied.
REVENUE FROM TOUR, HOTEL AND CRUISE OPERATIONS
FLT has a number of touring and ground-handling operations provided through the brands Top Deck, Back-Roads, Discova
Asia and Discova Americas. In addition FLT provides hotel operations through Away Camakila.
Revenue is generated from tour, hotel and cruise operations when FLT, acting as principal, provides tours, ground-handling
services and hotel accommodation, cruise cabins, and other hotel services (eg restaurant, spa). Revenue is variable and
includes the gross amount sold less any cancellations/refunds.
Revenue is recognised over the duration of the tour/accommodation period or when the ground-handling service, hotel
service or cruise cabin is provided. The costs associated with fulfilling these services such as transport, accommodation
costs, wages and food and beverage are expensed over the same duration and disclosed as cost of tour and hotel
operations in the statement of profit or loss.
As principal, FLT is responsible for refunds to the customer, with an allowance for refunds taken into consideration in the
recognition of revenue.
REVENUE FROM OTHER BUSINESSES
Revenue is generated when FLT, typically acting as principal, provides other services to customers. This includes services
provided by the brands FC Business School, Travel Academy and TPConnects. Revenue is recognised when the
performance obligation has been satisfied. The revenue may be variable or fixed and is typically recognised over time as the
service is provided. The most likely method is used for variable revenue recognition. The revenue is not subject to material
constraints as it is recognised only when all performance obligations have been satisfied.
A3
OTHER INCOME
2024
2023
NOTES
$'000
$'000
OTHER INCOME
Interest
36,373
31,195
Rent and sub-lease rentals
F7
7,305
9,157
Buy-back and remeasurement of convertible notes
B5
48,022
—
Gain / (loss) on financial liabilities
A7
4,600
(412)
Mark-to-market gain on financial asset equity investments held at FVTPL
3,003
—
Net foreign exchange gains
—
2,212
Government subsidies
617
1,237
Total
99,920
43,389
BUY-BACK AND REMEASUREMENT OF CONVERTIBLE NOTES
During October 2023, there was a partial repurchase and remeasurement of convertible notes due November 2027,
resulting in a gain of $10,982,000 on the partial repurchase and a gain of $37,040,000 on the remeasurement. Refer to Note
B5 for further details.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
50
A4
EXPENSES
Profit/(loss) before income tax includes the following expenses:
2024
2023
NOTES
$'000
$'000
FINANCE COSTS
BOS interest expense
2,583
2,106
Interest and finance charges
21,183
25,622
Coupon on convertible notes
15,233
16,500
Amortisation of convertible note at effective interest rate
B5
30,816
32,877
Lease interest expense
F7
9,789
7,295
Unwind of make good provision discount
F10
294
395
Total finance costs
79,898
84,795
OTHER EXPENSES
Other occupancy costs
41,743
40,854
Rent expense
F7
9,124
5,192
Consulting and outsourcing fees
77,016
75,349
Independent agent consulting fees
95,079
78,563
Communication and IT
228,285
203,088
Net foreign exchange losses
1,539
—
Supplier loss1
F4
10,828
—
Bad debts (reversal) / expense
F3 / F4
(2,835)
4,154
Other expenses
107,008
78,473
Total other expenses
567,787
485,673
1 The group recorded an expected credit loss of $10.7m on contract assets due to deteriorated creditworthiness of REX airlines as of 30 June 2024.
In addition to the depreciation and amortisation disclosed in the Statement of profit or loss, ‘Tour, hotel & cruise operations
- Cost of sales’ in the Statement of profit or loss statement includes $729,249 (2023: $692,606) relating to depreciation and
amortisation directly attributable to the delivery of tour and hotel services.
Refer to note F7 for depreciation and amortisation relating to right of use assets under AASB16.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
51
A5
INTANGIBLE ASSETS
OVERVIEW
FLT continues to focus on enhancing productivity, reducing costs and making it easier for customers to interact and transact
with its brands and people across all channels. Growing digital capabilities has also been a priority. These strategies are
reflected in the growth in intangibles through additions.
GOODWILL
BRAND NAMES,
LICENCES AND
CUSTOMER
RELATIONSHIPS¹
SOFTWARE²
TOTAL
Opening Balance at 1 July 2022
$'000
$'000
$'000
$'000
Cost
776,509
117,476
288,557
1,182,542
Accumulated amortisation (including accumulated
impairment losses)
(168,242)
(106,117)
(125,890)
(400,249)
Net book amount at 1 July 2022
608,267
11,359
162,667
782,293
Additions
—
—
70,652
70,652
Acquisitions
171,882
19,125
2,024
193,031
Disposals & retirements³
—
—
(221)
(221)
Amortisation
—
(6,373)
(32,516)
(38,889)
Exchange differences
43,370
2,080
2,173
47,623
Net book amount at 30 June 2023
823,519
26,191
204,779
1,054,489
Opening Balance at 1 July 2023
Cost
906,894
141,362
368,880
1,417,136
Accumulated amortisation (including accumulated
impairment losses)
(83,375)
(115,171)
(164,101)
(362,647)
Net book amount at 1 July 2023
823,519
26,191
204,779
1,054,489
Additions
—
—
73,896
73,896
Disposals & retirements³
—
—
(1,367)
(1,367)
Impairments
(19,484)
(2,108)
(14,816)
(36,408)
Amortisation
—
(9,064)
(49,524)
(58,588)
Exchange differences
(6,569)
14
(419)
(6,974)
Net book amount at 30 June 2024
797,466
15,033
212,549
1,025,048
Cost
905,554
104,372
365,119
1,375,045
Accumulated amortisation (including accumulated
impairment losses)
(108,088)
(89,339)
(152,570)
(349,997)
Net book amount at 30 June 2024
797,466
15,033
212,549
1,025,048
1 Definite life brand names are amortised over their expected useful life, not exceeding 15 years. Customer relationships are amortised over their expected useful life, not
exceeding seven years. During the period fully amortised brand names were derecognised.
2 Relates predominately to software which is amortised using the straight-line method over the project’s period of expected future benefits, which varies from 2.5 to 5 years,
with some core software products amortised over periods 10 to 15 years.
3 Balances shown net of accumulated amortisation.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
52
A5
INTANGIBLE ASSETS (CONTINUED)
(A)
IMPAIRMENT TESTS
Critical accounting estimates, assumptions and judgements - impairment of goodwill and indefinite life intangibles
The group tests goodwill and indefinite life intangibles (mainly brand names) annually for impairment, in accordance with
the accounting policy stated in note l(g). For all cash-generating units (CGUs) which contain goodwill or indefinite life
intangibles and all other CGUs which show an indicator of impairment, the recoverable amounts have been determined
based on the higher of fair value less costs of disposal or value-in-use calculations. These calculations use cash flow
projections based on management’s financial forecasts and cover a five-year period. Refer below for details of these
assumptions and the potential impacts of reasonable changes to the assumptions.
Goodwill and indefinite life intangibles are allocated to the CGUs, identified in accordance to relevant business and country
of operation.
Each segment includes a number of separately identifiable CGUs or groups of CGUs. Goodwill and indefinite life intangibles
allocated to individually significant CGUs or groups of CGUs are presented at the net book amount below:
GOODWILL
INDEFINITE LIFE
BRAND NAMES & LICENCES3
2024
2023
2024
2023
$'000
$'000
$'000
$'000
Global Leisure1
409,830
411,618
—
—
Global Corporate
345,050
349,436
—
—
Discova
31,723
33,840
—
—
Student Universe
—
19,075
—
2,111
Other2
10,863
9,550
741
198
Total
797,466
823,519
741
2,309
1 In the prior year, Australia Leisure and Scott Dunn were disclosed separately. During the period these CGUs were aggregated with other Leisure CGUs to form a Global
Leisure CGU to more accurately reflect the way management is now monitoring and reporting activities. Prior period comparatives have been restated.
2 Other includes CGUs which are not individually significant. $34,000 of impairment of software was recorded in the year ended 30 June 2024.
3 FLT owns these brands and licences and intends to continue to use them indefinitely.
Current year
During the period it was decided to restructure Student Universe under FLT’s Jetmax online travel agency group to gain
synergies across the brands, as a result it was impaired. FLT has recorded a non-cash impairment to goodwill of
$19,484,000, indefinite life brand names of $2,108,000 and software of $14,782,000. The impairment has been recognised in
the Leisure segment and Americas geographic information in note A1. Post impairment there is no remaining goodwill,
brand names or software in the Student Universe CGU.
The recoverable amount of the Student Universe CGU was determined by reference to a fair value less cost to sell
methodology. The key assumptions in the model are as follows:
• Five year budgeted EBITDA based on management’s forecast of revenue, taking into account the maintainable growth
rate of both on-line and travel services
• Revenue forecasts take into account historical revenue and consider external factors such as projections of gross on-
line airline bookings
• A rate of 2% was used to extrapolate cash flows beyond budget period to calculate a terminal value
• No cost to sell was applied as the business will be restructured internally.
Management have applied a pre-tax discount rate of 17.4% based on available market data and data from other comparable
listed companies within the travel sector.
Prior year
There has been no impairment of goodwill or indefinite brand names & licences in the prior year
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
53
A5
INTANGIBLE ASSETS (CONTINUED)
(B)
KEY ASSUMPTIONS USED FOR VALUE-IN-USE / FAIR VALUE LESS COST TO SELL
CALCULATIONS
The discount rates shown were applied to CGUs within each of the geographic areas. For the purposes of impairment
testing, fair value methodologies were applied and a long-term growth rate of 2.0% - 2.5% (2023: 2.0% - 2.5%) was used to
extrapolate cash flows beyond the budget period and calculate a terminal value.
These assumptions have been used for the analysis of each CGU within the business segment, in line with local expected
long-term inflation.
PRE-TAX DISCOUNT RATE
GOODWILL & BRAND NAMES
2024
2023
CGU
%
%
Global Leisure
15.8
16.2
Global Corporate
15.0
14.6
Discova
17.8
17.4
Student Universe
17.4
18.2
Other CGUs (excluding those listed above)
15.8
16.2
The basis of estimation of the five-year cash flows uses the following key operating assumptions:
• Five-year budgeted EBITDA is based on management's forecasts of revenue from travel services, taking into account
expected TTV/sales growth
• Revenue forecasts take into account historical revenue and consider external factors such as market sector and
geography
• Costs are calculated taking into account historical margins, forecast increases and estimated inflation rates over the
period, consistent with the locations in which the CGUs operate
• Where fair value less cost to sell methodology has been appropriately applied, the costs to dispose are estimated at
2% of enterprise value
Management has calculated the discount rates based on available market data and data from comparable listed companies
within the travel sector.
(C)
IMPACT OF POSSIBLE CHANGES IN KEY ASSUMPTIONS
There are no CGUs identified as being sensitive to changes in key assumptions.
A6
BUSINESS COMBINATIONS
(A)
CURRENT YEAR ACQUISITIONS
There were no acquisitions in the current period.
(B)
PRIOR YEAR ACQUISITIONS
The Luxury Travel Holdings Ltd and its subsidiaries (Scott Dunn) acquisition occurred in the prior period to 30 June 2023 with
the purchase price accounting for Scott Dunn finalised during 30 June 2024 with no changes to the provisional accounting
disclosed.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
54
A7
FINANCIAL LIABILITIES
2024
2023
CURRENT
$'000
$'000
Contingent consideration
3,683
3,908
Total current financial liabilities
3,683
3,908
NON-CURRENT
Put option financial liability
5,915
10,573
Total non-current financial liabilities
5,915
10,573
Contingent consideration and the put option financial liability are recognised in relation to the acquisitions listed below. FLT
has determined that contingent consideration and put option is classified as Level 3 (2023: Level 3) under the AASB 13 Fair
value measurement hierarchy as the main valuation inputs outlined below are unobservable.
Any changes in the fair value of the contingent consideration are recorded through other income in the statement of profit
or loss.
The put option liabilities that exist, outlined for each company below, have been recognised as a financial liability and in the
acquisition reserve of the parent entity. Changes in fair value have gone through the statement of profit or loss.
AVMIN PTY LIMITED (AVMIN)
The financial liability related to the put option for AVMIN of $3,683,000 (2023: $3,683,000) has been recorded as part of
current contingent consideration. The potential undiscounted amount of this liability has been estimated as the value of
future expected cash flows for the settlement of the put option for AVMIN. The expected cash flows are based on a multiple
of the average NPAT for the year ended 30 June 2022 and for the year ended 30 June 2023.
TRAVEL TECHNOLOGY FZ LLC (TP CONNECTS)
Concurrent with the acquisition in the year ended 30 June 2022, FLT through its subsidiary Flight Centre Travel Group (UAE
Holdings) Limited entered into a call option over the non-controlling shareholders’ remaining 30% interest in TP Connects
and the non-controlling shareholders entered into a corresponding put option. The call option can be exercised after 1 July
2027 and the put option can only be exercised by TP Connects if the call option is not exercised by FLT.
The financial liability relates to the expected put option exercise price and has been recorded as a non-current financial
liability of $5,915,000 (2023: $10,573,000). On initial recognition the corresponding amount was recognised in the
acquisition reserve (note F11). The carrying value of the liability has been estimated as the expected cash flows for the
settlement of the put option, and has been determined with reference to the actual and forecast EBITDA of TP Connects.
Any change in value, together with the net present value interest unwind on the put option liability, is recorded through the
statement of profit or loss.
GRASSHOPPER ADVENTURES LTD (GRASSHOPPER)
The financial liability related to the Grasshopper acquisition that was recorded as part of contingent consideration was paid
during the period. The potential undiscounted amount payable per the asset purchase agreement is $0 (2023: $225,000).
Reconciliation of financial liabilities for the period is set out below:
FINANCIAL
LIABILITIES
NOTES
$'000
Opening balance at 1 July 2023
14,481
Net foreign exchange movements
(58)
Remeasurement to fair value
(4,600)
Grasshopper Final Tranche payment
(225)
Closing balance at 30 June 2024
9,598
SIGNIFICANT ACCOUNTING ESTIMATE
The valuations used to determine the carrying amount of put option financial liabilities are based on forward looking key
assumptions that are, by nature, uncertain. This requires an estimation of future earnings which includes assumptions in
relation to revenue growth and the cost of business operations.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
55
B
CASH MANAGEMENT
FLT has a capital allocation framework in place which looks to maximise shareholder returns and long-term growth while
balancing a conservative capital structure.
B1
Cash and cash equivalents
B2
Financial asset investments
B3
Cash and financial asset investments - financial risk management
B4
Borrowings
B5
Convertible notes
B6
Ratios
• Net debt
• Gearing ratio
B7
Dividends
B1
CASH AND CASH EQUIVALENTS
2024
2023
$'000
$'000
Cash at bank and on hand
718,287
926,414
Restricted cash¹
419,855
402,024
Total cash and cash equivalents
1,138,142
1,328,438
1 Restricted cash and cash equivalents relates to cash held within legal entities of the group for payment to product and service suppliers or cash held for supplier
guarantees where contractually required. Restricted cash includes monies paid to the group by end consumers for payment to local International Air Transport Association
(IATA) for ticketed travel arrangements, and refund monies received from IATA awaiting payment to end consumers.
RECONCILIATION TO STATEMENT OF CASH FLOWS
2024
2023
$'000
$'000
Cash and cash equivalents
1,138,142
1,328,438
Bank overdraft
(1,277)
(49,502)
Balance per Statement of Cash Flows
1,136,865
1,278,936
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
56
B1
CASH AND CASH EQUIVALENTS (CONTINUED)
RECONCILIATION OF PROFIT AFTER TAX TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
2024
2023
$'000
$'000
Profit after income tax for the year
139,155
47,412
Depreciation and amortisation
159,326
142,092
Net loss / (gain) on disposal of non-current assets
2,286
(306)
Net gain on sale of financial assets at fair value
—
(138)
Share of loss of joint ventures & associates
2,435
4,084
Impairment charges / (reversals)
39,850
(328)
Dividends paid to non-controlling shareholders in subsidiaries
408
1,009
Non-cash employee benefits expense - share based payments
24,235
41,100
Non-cash employee benefits expense - other
446
772
Amortisation of convertible note
30,816
24,366
Non-cash other income - buy back and remeasurement of convertible note
(48,022)
—
Non-cash other income - other
(7,603)
—
Lease surrender payments
236
661
Net exchange differences
(445)
(7,968)
Increase in trade receivables, contracts assets and other assets
(57,878)
(349,768)
Increase in trade creditors and other payables
94,212
213,103
Increase in net income taxes payable
41,075
29,734
Increase in other provisions
948
10,345
Net cash inflow from operating activities
421,480
156,170
B2
FINANCIAL ASSET INVESTMENTS
2024
2023
CURRENT
$'000
$'000
Debt securities - Fair value through other comprehensive income (FVOCI)
10,007
20,227
Total current financial asset investments
10,007
20,227
NON-CURRENT
Equity investments - Fair value through profit or loss (FVTPL)
7,729
4,589
Debt securities - Fair value through other comprehensive income (FVOCI)
—
10,067
Total non-current financial asset investments
7,729
14,656
Debt securities measured at FVOCI have contractual cash flow characteristics that are solely payment of principal and
interest and are held in a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets.
Debt securities and repurchase receivables are measured at amortised cost only if both the following conditions are met:
• it is held within a business model whose objective is to hold assets in order to collect contractual cash flows
• the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and
interest
Debt securities at FVOCI (corporate bonds) are measured at fair value, which is determined by reference to price quotations
in a market for identical assets. FLT has determined that they are classified as Level 2 (2023: Level 2) under the AASB 13 Fair
Value Measurement hierarchy.
Equity investments at FVTPL are measured at fair value, which is determined by an independent qualified valuer in
accordance with Australian Accounting Standards (AASB’s) and International Private Equity and Venture Capital Valuation
Guidelines as adopted by Australian Private Equity and Venture Capital Association Limited. FLT has determined that they
are classified as Level 3 (2023: Level 3) under the AASB 13 Fair Value Measurement hierarchy, based on the valuation
technique as described above.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
57
B3
CASH AND FINANCIAL ASSET INVESTMENTS - FINANCIAL RISK MANAGEMENT
CREDIT RISK
Credit risk arising from cash and cash equivalents and financial asset investments is managed in accordance with group
treasury policy. Limits are set on credit rating, type of security, counterparty exposure and maturity.
Credit quality has been assessed by reference to external credit ratings (if available) or to historical information about
counterparty default rates. There has been no significant increase to credit risk for cash and cash equivalents and
financial assets.
EQUIVALENT S&P RATING
AA AND
ABOVE
AA-TO A-
BBB+ TO BBB-
NON
INVESTMENT
GRADE /
UNRATED
UNRATED - FX
BUSINESS
CURRENCY
HOLDINGS
TOTAL
AT 30 JUNE 2024
$'000
$'000
$'000
$'000
$'000
$'000
Cash and cash equivalents
—
897,813
95,276
89,237
55,816
1,138,142
Equity investments - FVTPL
—
—
—
7,729
—
7,729
Debt securities - FVOCI
—
10,007
—
—
—
10,007
AT 30 JUNE 2023
Cash and cash equivalents
—
1,157,068
53,264
76,992
41,114
1,328,438
Equity investments - FVTPL
—
—
—
4,589
—
4,589
Debt securities - FVOCI
—
30,294
—
—
—
30,294
ACCOUNTING POLICY
FLT has applied the simplified approach for provisioning for expected credit losses prescribed by AASB 9 for financial assets
held at amortised cost. Additional information on trade and other receivables accounting policy is included in note I (m).
The maximum exposure to credit risk is the carrying amount of financial assets and the carrying amount of cash and cash
equivalents as disclosed above. Rated assets falling outside the AAA and BBB- range are considered non-investment
grade / unrated. These include term deposits in overseas banks held by the subsidiaries, mainly in South Africa. Unrated FX
business currency holdings consists of cash on hand for trading purposes as part of the Travel Money foreign exchange
business.
MARKET RISK
INTEREST RATE AND FOREIGN CURRENCY RISK
The group holds investments at variable rates. FLT’s profit and operating cash flows are, therefore, exposed to changes in
market interest rates. The group constantly analyses its interest rate exposure.
The group has no exposures to interbank offered rates (IBORs) on its non-derivative financial instruments that have been
replaced or reformed as part of the market-wide initiatives.
Refer to note C1 for sensitivity of interest rate risk and foreign currency risk.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
58
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
B4
BORROWINGS
2024
2023
CURRENT
NOTES
$'000
$'000
Bank loans (including bank overdraft)
10,592
56,875
Net unsecured notes principal¹
D2
610
602
Total current borrowings
11,202
57,477
NON-CURRENT
Bank loans
102,561
352,893
Total non-current borrowings
102,561
352,893
1 Refer to note D2 for further information on the net unsecured notes that form part of the Business Ownership Scheme (BOS).
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
2024
2023
BORROWINGS
$'000
$'000
Opening Balance at 1 July
410,370
374,238
Cashflow - Proceeds from borrowings¹
3,217
254,420
Cashflow - Repayment of borrowings¹
(252,092)
(253,286)
Proceeds from bank overdrafts
1,203
34,259
Repayment of bank overdrafts
(49,428)
(1,404)
Foreign exchange movement
493
2,143
Closing Balance at 30 June
113,763
410,370
1 This includes the bank debt facilities, the periodic use of the repurchase facility and operation of the Business Ownership Scheme (BOS) during the year. Further details of
BOS are included in note D2.
The group classifies interest paid within cash flows from operating activities.
FINANCIAL RISK MANAGEMENT
CAPITAL MANAGEMENT
FLT has $250,000,000 of the $350,000,000 syndicated debt facility (SFA) undrawn. Facility has a maturity date of 28 April 2026
(2023: February 2025). The facility is guaranteed by certain members of Group.
At 30 June 2024 FLT complied with the net leverage ratio and fixed charges cover ratio covenants for the fiscal year. This
satisfied the financial covenants requirements under the SFA. FLT’s next covenant compliance obligation is 31 December
2024.
MARKET RISK
A fundamental reform of major interest rate benchmarks was undertaken globally, including the replacement of some
interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The group has no
exposures to IBORs on its borrowings that have been replaced or reformed as part of these market-wide initiatives.
CASH FLOW AND FAIR VALUE INTEREST RATE RISK
The group holds borrowings which are issued at both effective fixed and variable rates. FLT’s profit and operating cash flows
are, therefore, exposed to changes in market interest rates.
The group constantly analyses its interest rate exposure, taking into consideration refinancing, renewal of existing positions
and alternative financing. The group calculates the impact a defined interest rate shift will have on profit or loss. For each
analysis, the same interest rate shift is used for all currencies.
Under group policy, the maximum percentage of outstanding external group debt that may be maintained at a fixed
interest rate is 50%, unless the group’s Global CFO and Global Treasurer approve otherwise. Current bank loan facilities are
subject to annual review (except the syndicated debt facility) and are a mix of fixed and floating interest rates.
Non-current loan facilities have maturities between 1 - 4 years (2023: 1.5 - 3 years) and are at a mix of fixed and
floating rates.
The current interest rates on loan facilities range from 0.55% - 11.00% (2023: 0.55% - 8.00%).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
59
B4
BORROWINGS (CONTINUED)
LIQUIDITY RISK
The group has access to additional financing via unused bank loan facilities, repurchase agreements, credit card facilities,
bank guarantees and letter of credit facilities.
BANK LOANS & LEASING
FACILITIES
CREDIT CARDS
BANK GUARANTEES
& LETTERS OF CREDIT
2024
2023
2024
2023
2024
2023
$'000
$'000
$'000
$'000
$'000
$'000
Unused
313,635
17,493
107,466
89,686
33,590
42,086
Used
113,555
410,729
74,807
73,264
72,991
44,577
Total facilities
427,190
428,222
182,273
162,950
106,581
86,663
Bank guarantees and letters of credit are provided as security on various facilities with vendors and in accordance with local
travel agency licensing and IATA regulations.
Refer to note C1 for a sensitivity analysis of borrowings' interest rate risk and details of borrowings' maturity profiles and
associated liquidity risks.
There have been no defaults during the period.
FAIR VALUE
The carrying amount of the group’s borrowings approximates their fair values, as commercial rates of interest are paid and
the impact of discounting is not significant.
ASSETS PLEDGED AS SECURITY
$42,250,000 of FLT's cash is invested with the providers of certain bank guarantees and letter of credit facilities and used as
collateral for bank guarantees and letters of credit issued under those facilities.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
60
B5
CONVERTIBLE NOTES
CONVERTIBLE NOTES DUE NOVEMBER 2027
The Company issued convertible notes with an aggregate amount of $400,000,000 and strike price of $20.04, on 17
November 2020 (see below for changes in strike price subsequent to the date of issuance). Note holders have an option to
redeem the bond at the end of 4 years (November 2024) at face value plus any accrued but unpaid interest. Any convertible
notes not converted will be redeemed on 17 November 2027 at the principal amount together with accrued but unpaid
interest thereon.
These notes carry an interest rate of 2.50% per annum (effective interest rate of 7% per annum based on a seven year
amortisation period on estimation of cashflow timing in line with a seven year redemption), which is payable semi-annually in
arrears in May and November. FLT applies significant judgment in determining the amortisation period.
PARTIAL REPURCHASE OF CONVERTIBLE NOTES DUE NOVEMBER 2027
During October 2023, convertible notes due November 2027, with a face value of $75,000,000 were bought back for
$84,153,000. The fair value of the liability component of these notes was re-measured before buy-back using an equivalent
market interest rate for a similar bond without a conversion option, which resulted in a gain of $10,982,000. The gain is
recognised in other income in the statement of profit or loss.
The $84,153,000 consideration was allocated between liabilities and equity. The liability component was $60,797,000 and the
equity component was $23,356,000.
CONVERTIBLE NOTES DUE NOVEMBER 2028
The Company issued a second convertible note with an aggregate amount of $400,000,000 and strike price of $27.30, on 1
November 2021 (see below for changes in the strike price subsequent to the date of issuance). Note holders have an option
to redeem the bond at the end of 4.5 years (May 2026) at face value plus any accrued but unpaid interest. Any convertible
notes not converted will be redeemed on 1 November 2028 at the principal amount together with accrued but unpaid
interest thereon.
These notes carry an interest rate of 1.625% per annum (effective interest rate of 7.12% per annum based on a four-and-a-
half-year amortisation period on estimation of cashflow timing in line with four-and-a-half year redemption option), which is
payable semi-annually in arrears in May and November. FLT applies significant judgment in determining the amortisation
period.
CONVERSION PRICE ADJUSTMENT OF CONVERTIBLE NOTES
As a result of the issue on 13 March 2023 of 4,109,183 new ordinary shares at a price of $14.60 per ordinary share pursuant to
a Share Purchase Plan and the declaration on 30 August 2023 of fully franked interim dividend of $0.18, the conversion price
of the convertible notes due November 2027 has been adjusted from $20.04 to $19.77, and the conversion price of the
convertible notes due November 2028 has been adjusted from $27.30 to $26.93 effective 20 September 2023.
The current dividend (declared by FLT on 28 August 2024), together with the interim dividend (declared by FLT on 28
February 2024), will result in adjustments to strike prices of both the convertible notes due November 2027 and the
convertible notes due November 2028. Any future dividends may also result in adjustments to strike prices.
REMEASUREMENT OF CONVERTIBLE NOTES
FLT reassessed the estimated timing of cashflows of the notes and concluded that based on management’s estimate, the
amortisation period of the notes due November 2027 should be aligned with the contractual maturity of 17 November 2027
(originally amortised to the put date of November 2024). A remeasurement of the carrying value of the remaining
$325,000,000 of notes due November 2027 resulted in a gain of $37,040,000. The gain is recognised in other income in the
statement of profit or loss. There has been no change to the amortisation period of the notes due November 2028
(amortised to put date of May 2026).
2024
2023
NOTES
$'000
$'000
CURRENT
Convertible notes due November 20271
280,825
—
Total current convertible notes
280,825
—
NON-CURRENT
Convertible notes due November 20281
338,999
688,940
Total non-current convertible notes
338,999
688,940
1 The convertible notes due November 2027 are classified as current, as note holders have an option to redeem the remaining $325,000,000 face value of the bond in
November 2024. The convertible notes due November 2028 are classified as non-current as note holders have an option to redeem the bonds in May 2026.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
61
B5
CONVERTIBLE NOTES (CONTINUED)
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
2024
2023
NOTES
$'000
$'000
Opening Balance at 1 July
688,940
655,985
Amortisation of borrowings at effective interest rate
A4
30,816
32,877
Cashflow - buy-back of convertible notes1
(84,153)
—
Gain on buy-back of convertible notes1
A3
(10,982)
—
Gross equity component of convertible notes bought back1
F11
23,356
—
Gain on remeasurement of notes1
A3
(37,040)
—
Changes in fair value hedge during the period
8,887
78
Closing Balance at 30 June
619,824
688,940
1 These transactions relate to convertible notes due November 2027.
ACCOUNTING POLICY
The component of convertible notes that exhibits characteristics of a liability is recognised as a liability in the balance sheet,
net of transaction costs. On issuance of convertible notes, the fair value of the liability component is determined using a
market rate for an equivalent non-convertible note; and this amount is carried as a non-current liability on the amortised cost
basis until extinguished on conversion or redemption. The increase in liability due to passage of time is recognised as
finance cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in
shareholders’ equity, net of transaction costs. The carrying amount of the conversion option is not remeasured in
subsequent periods. Transaction costs are apportioned between the liability and equity components of the convertible
notes based on the allocation of proceeds to the liability and equity components when the instruments are first recognised.
B6
RATIOS
CAPITAL MANAGEMENT
FLT maintains a funding structure that allows it to meet its operational and regulatory requirements, while providing
sufficient flexibility to fund growth, working capital requirements and future strategic opportunities. The group’s capital
structure includes a mix of debt, general cash and equity attributable to the parent’s equity holders.
NET CASH / (DEBT)
2024
2023
NOTES
$'000
$'000
Cash at bank and on hand (excluding restricted cash)
B1
718,287
926,414
Financial investments - current
B2
10,007
20,227
Financial investments - non-current
B2
7,729
14,656
736,023
961,297
Less:
Borrowings - current
B4
11,202
57,477
Borrowings - non-current
B4
102,561
352,893
113,763
410,370
Net cash / (debt)¹
622,260
550,927
FLT continues to be in a net cash position (30 June 2023: net cash position). FLT bought back $84,153,000 of convertible
notes and paid $61,591,000 in dividends (to company owners and non-controlling shareholders in subsidiaries) during the
period, reducing the net cash balance. In addition, FLT repaid $252,092,000 in borrowings and $49,428,000 in bank
overdrafts which, whilst not impacting net cash, did reduce cash at bank and on hand.
1 Net cash / (debt) = (Cash + financial investments) – (current and non-current borrowings). The calculation excludes restricted cash (refer note B1) and convertible notes.
The calculation also excludes the impact of AASB 16 Leases in respect of the current and non-current lease liabilities.
GEARING RATIO
2024
2023
NOTES
$'000
$'000
Total borrowings
B4
113,763
410,370
Total equity
1,203,203
1,136,497
Gearing ratio¹
9.5 %
36.1 %
1 Gearing ratio = Total borrowings / Total equity. The calculation excludes the convertible note and lease liabilities from total borrowings.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
62
B7
DIVIDENDS
OVERVIEW
When determining dividend returns to shareholders, FLT’s board considers a number of factors, including the company’s
anticipated cash requirements to fund its growth and operational plans and current and future economic conditions.
A final dividend has been declared taking into account traditional seasonal cashflows, anticipated cash outflows and one-off
profit items.
The combined interim and final dividend represents a $88,023,000 (2023: $39,491,000) return to shareholders, 47% (2023:
83%) of FLT’s statutory NPAT. The combined dividend represents 29% (2023: 36% ) of FLT’s full year underlying NPAT.
2024
2023
ORDINARY SHARES
$'000
$'000
Final ordinary dividend for the year ended 30 June 2023 of 18.0 c cents (2022: 0.0 cents) per fully
paid share
39,491
—
Interim ordinary dividend for the year ended 30 June 2024 of 10.0c cents (2023: 0.0 cents) per fully
paid share
22,100
—
61,591
—
The final dividend is per fully paid ordinary share fully franked based on tax paid at 30%. The aggregate amount of the
proposed dividends expected to be paid on 17 October 2024 out of retained profits at 30 June 2024, but not recognised as
a liability at the end of the year are as follows:
2024
2023
AMOUNT PER
SECURITY
CENTS
AMOUNT PER
SECURITY
CENTS
Final dividend
30
18
$'000
$'000
Final dividend
65,923
39,110
FRANKING CREDITS
$'000
$'000
Franking credits available for subsequent financial years based on a tax rate of 30%
102,570
127,604
The above amounts represent the balance of the franking account at the end of the financial year, adjusted for:
i. Franking credits that will arise from the current tax liability’s payment
ii. Franking debits that will arise from the dividend payments recognised as a liability for the reporting period’s end; and
iii. Franking credits that will arise from the receipt of dividends recognised as receivables at the reporting period’s end.
The dividend recommended by the directors since year-end, but not recognised as a year-end liability will reduce the
franking account by $28.4m (2023: $nil.)
1 Underlying NPAT is an unaudited, non-IFRS measure.
Current year underlying PBT of $320,385,000 excludes underlying adjustments detailed in note A1. Underlying NPAT of $229,612,000 excludes the related tax impact of
$90,773,000.
2024
2023
DIVIDENDS PAYABLE
$'000
$'000
Opening balance at 1 July
—
—
Dividends declared - parent entity
61,591
—
Dividends declared - attributable to non-controlling interest
—
—
Cashflow - Dividend payment
(61,591)
—
Closing balance at 30 June
—
—
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
63
C
FINANCIAL RISK MANAGEMENT
This section provides information relating to FLT group’s exposure to financial risks, how they affect the group’s financial
position and performance and how the risks are managed.
C1
Financial risk management
C2
Derivative financial instruments
C3
Other financial assets
C1
FINANCIAL RISK MANAGEMENT
OVERVIEW
FLT continues to ensure it retains a robust balance sheet and liquidity position.
The group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate
risk), credit risk and liquidity risk.
A central treasury department oversees financial risk under board-approved policies that cover specific areas, such as
foreign exchange risk, interest rate risk and credit risk, use of derivative financial instruments and non-derivative financial
instruments and investments. Treasury identifies, evaluates and hedges financial risks in co-operation with the group’s
operating units. The board provides written principles for overall risk management, as well as policies covering the specific
areas noted above.
Market risk and credit risk are analysed within the relevant balance sheet note disclosures with the exception of the effects of
hedge accounting, which is set out below. Liquidity risk and sensitivities are also set out below.
LIQUIDITY RISK
FLT closely manages and monitors liquidity at a group level through rolling operating cashflow forecasts, supported by
Global Treasury review of short-term,13-week cashflow forecasts prepared weekly at a detailed level by business and
country.
During the year FLT complied with the net leverage ratio, and the fixed charges cover ratio financial covenants for the twelve
month periods to 31 December 2023 and 30 June 2024. FLT’s next covenant compliance obligation is 31 December 2024.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
64
C1
FINANCIAL RISK MANAGEMENT (CONTINUED)
LIQUIDITY RISK (CONTINUED)
MATURITIES OF FINANCIAL LIABILITIES
The tables below analyse the group’s financial liabilities and net and gross settled derivative financial instruments into
relevant maturity groupings. Groupings are based on the remaining period to the contractual maturity date at the reporting
period’s end. The amounts disclosed in the table are the contractual undiscounted cash flows.
2024
LESS THAN
12 MONTHS
BETWEEN
1 AND 2
YEARS
BETWEEN
2 AND 5
YEARS
MORE
THAN
5 YEARS
TOTAL
CONTRACTUAL
CASH FLOWS
CARRYING
AMOUNT
(ASSETS)/
LIABILITIES
Non-derivatives
$'000
$'000
$'000
$'000
$'000
$'000
Trade and other payables
1,708,553
—
—
—
1,708,553
1,708,553
Financial liabilities
3,683
—
7,727
—
11,410
9,598
Borrowings
16,530
107,180
1,004
—
124,714
113,763
Convertible note1
335,563
406,500
—
—
742,063
619,824
Lease liabilities
84,475
66,117
98,723
28,159
277,474
254,565
Total non-derivatives
2,148,804
579,797
107,454
28,159
2,864,214
2,706,303
Derivatives
18,809
15,040
—
—
33,849
32,406
Derivatives - net settled
18,809
15,040
—
—
33,849
32,406
2023
Non-derivatives
Trade and other payables
1,637,299
—
—
—
1,637,299
1,637,299
Financial liabilities
3,908
—
11,464
—
15,372
14,481
Borrowings
77,242
365,081
1,950
—
444,273
410,370
Convertible note
16,500
411,500
406,500
—
834,500
688,940
Lease liabilities
85,486
63,228
97,549
38,187
284,450
259,423
Total non-derivatives
1,820,435
839,809
517,463
38,187
3,215,894
3,010,513
Derivatives
21,034
12,454
13,650
—
47,138
45,169
Derivatives - net settled
21,034
12,454
13,650
—
47,138
45,169
1 The convertible notes due November 2027 are classified as current, as note holders have an option to redeem the remaining $325,000,000 face value of the bond in
November 2024. The convertible notes due November 2028 are classified as non-current as note holders have an option to redeem the bonds in May 2026.
SUMMARISED SENSITIVITY ANALYSIS
The following table summarises the sensitivity of the group’s financial assets and financial liabilities to interest rate risk and
foreign exchange risk.
The foreign exchange sensitivities are based on the group’s exposures existing at balance date taking into account the
Group’s designated cash flow hedges.
Interest rate sensitivities are based on reasonable changes in interest rates on that portion of cash, investments and
borrowings affected.
Foreign currency risks, as defined by AASB 7 Financial Instruments: Disclosures, arise on account of financial instruments
being denominated in a currency that is not the functional currency in which the financial instrument is measured.
Differences from the translation of financial statements into the group’s presentation currency are not taken into
consideration in the sensitivity analysis. Foreign exchange sensitivities are based on reasonably possible changes in foreign
exchanges rates.
For interest rate and foreign exchange rate sensitivities, all other variables are held constant. Sensitivity figures are pre tax.
The movement in equity excludes movements in retained earnings.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
65
C1
FINANCIAL RISK MANAGEMENT (CONTINUED)
SUMMARISED SENSITIVITY ANALYSIS (CONTINUED)
CARRYING
AMOUNT
INTEREST RATE RISK
FOREIGN EXCHANGE RISK
2024
-1%
+1%
-10%
+10%
Financial assets
$'000
PROFIT
PROFIT
PROFIT
PROFIT
Cash and cash equivalents
1,138,142
(11,381)
11,381
13,494
(11,040)
Equity securities - FVTPL
7,729
—
—
—
—
Debt securities - FVOCI
10,007
(100)
100
—
—
Trade & other receivables
907,956
—
—
16,376
(13,399)
Contract assets
314,561
—
—
13,076
(10,699)
Other financial assets
23,124
—
—
—
—
Derivative financial instruments
2,518
—
—
(22,248)
16,100
Financial liabilities
Trade and other payables
1,708,553
—
—
(40,153)
32,853
Financial liabilities
9,598
—
—
(538)
657
Borrowings - current
11,202
(88)
88
—
—
Borrowings - non-current
102,561
(1,000)
1,000
—
—
Convertible notes
(including derivatives)
619,824
(4,000)
4,000
—
—
Derivative financial instruments
24,895
—
—
(8,097)
5,609
Total increase / (decrease)
(16,569)
16,569
(28,090)
20,081
CARRYING
AMOUNT
INTEREST RATE RISK
FOREIGN EXCHANGE RISK
2023
-1%
+1%
-10%
+10%
Financial assets
$'000
PROFIT
PROFIT
PROFIT
PROFIT
Cash and cash equivalents
1,328,438
(13,284)
13,284
13,360
(10,931)
Equity securities - FVTPL
4,589
—
—
—
—
Debt securities - FVOCI
30,294
(300)
300
—
—
Trade & other receivables
866,591
—
—
10,266
(8,399)
Contract assets
320,931
—
—
14,328
(11,723)
Other financial assets
28,555
—
—
—
—
Derivative financial instruments
3,460
—
—
(2,634)
2,207
Financial liabilities
Trade and other payables
1,637,299
—
—
(23,688)
19,381
Financial liabilities
14,481
—
—
(1,130)
925
Borrowings - current
57,477
496
(496)
—
—
Borrowings - non-current
352,893
3,500
(3,500)
—
—
Convertible note (including derivatives)
688,940
4,000
(4,000)
—
—
Derivative financial instruments
40,464
—
—
(6,232)
7,030
Total increase / (decrease)
(5,588)
5,588
4,270
(1,510)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
66
C1
FINANCIAL RISK MANAGEMENT (CONTINUED)
SUMMARISED SENSITIVITY ANALYSIS (CONTINUED)
CARRYING
AMOUNT
INTEREST RATE RISK
FOREIGN EXCHANGE RISK
2024
-1%
+1%
-10%
+10%
Financial assets
$'000
EQUITY
EQUITY
EQUITY
EQUITY
Derivative financial instruments
1,470
—
—
4,125
(3,386)
Financial liabilities
Derivative financial instruments
7,511
(395)
393
(25,589)
22,571
(395)
393
(21,464)
19,185
CARRYING
AMOUNT
INTEREST RATE RISK
FOREIGN EXCHANGE RISK
2023
-1%
+1%
-10%
+10%
Financial assets
$'000
EQUITY
EQUITY
EQUITY
EQUITY
Derivative financial instruments
3,030
—
—
6,706
(5,487)
Financial liabilities
Derivative financial instruments
4,705
(1,405)
1,382
(5,671)
6,452
(1,405)
1,382
1,035
965
Other than disclosed in the table above, there are no other equity impacts as a result of movements in interest rates and
foreign exchange rates.
There is no profit or equity impact as a result of other price risk.
C2
DERIVATIVE FINANCIAL INSTRUMENTS
2024
2023
CURRENT ASSETS
NOTES
$'000
$'000
Forward foreign exchange contracts - designated in a cash flow hedge
1,470
3,030
Forward foreign exchange contracts - FVTPL
2,518
3,460
Total current derivative financial instrument assets
3,988
6,490
CURRENT LIABILITIES
Forward foreign exchange contracts - designated in a cash flow hedge
5,043
1,433
Forward foreign exchange contracts - FVTPL
1,046
8,376
Total current derivative financial instrument liabilities
6,089
9,809
NON-CURRENT LIABILITIES
Forward foreign exchange contracts - FVTPL
667
—
Cross currency interest rate swaps - designated in a net investment hedge
2,468
3,272
Interest rate swaps - designated in a fair value hedge
23,182
32,088
Total non-current derivative financial instrument liabilities
26,317
35,360
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
67
C2
DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
FINANCIAL RISK MANAGEMENT
FAIR VALUE
Forward foreign exchange contracts are measured at fair value, which is based on observable forward foreign exchange
rates and the respective currencies' yield curves, as well as the currency basis spreads between the respective currencies.
Cross currency interest rate swaps and interest rate swaps are measured at fair value, which is calculated as the present value
of the estimated future cash flows. Estimate of future cash flows are based on quoted swap rates, interbank borrowing rates
and, as appropriate, forward exchange rates.
The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument. See hedge accounting set out below for derivatives designated as part of a hedging relationship to which hedge
accounting is applied. Changes in fair value for derivative instruments that do not qualify for hedge accounting are
recognised immediately in the statement of profit or loss.
The forward foreign exchange contracts, cross currency interest rate swaps and interest rate swaps are classified as Level 2
(2023: Level 2) under the AASB 13 Fair value measurement hierarchy, based on the valuation technique described above.
MARKET RISK
The group has no exposures to IBORs on its derivative financial instruments that have been replaced or reformed as part of
these market-wide initiatives.
CREDIT RISK
The maximum exposure to credit risk in relation to derivatives at the reporting period's end is the fair value of all forward
foreign exchange contracts, cross currency interest rate swaps and interest rate swaps as disclosed above. Credit quality can
be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates.
All counterparties have an equivalent S&P rating ranging from A - AA.
HEDGE ACCOUNTING
ACCOUNTING POLICY
All derivatives are recognised in the balance sheet at fair value and are classified as FVTPL except where they are designated
as part of an effective hedge relationship and classified as hedging derivatives. The carrying value of a derivative is
remeasured at fair value throughout the life of the contract. Derivatives are carried as assets when the fair value is positive
and as liabilities when the fair value is negative.
The method of recognising the resulting fair value gain or loss on a derivative depends on whether the derivative is
designated as a hedging instrument and, if so, the nature of the item being hedged.
The group designates its derivatives as fair value hedges when hedging fair value of recognised assets or liabilities or a
firm commitment.
The group designates its derivatives as cash flow hedges when hedging the exposure to variability in cash flows that is either
attributable to a foreign currency risk or interest rate risk associated with a recognised asset or liability or a highly probable
foreign currency forecast transaction.
The group designates its derivatives as net investment hedges when hedging foreign currency risk attributable to a net
investment in a foreign operation.
FLT documents at the inception of the transaction the relationship between hedging instruments and hedged items, the risk
being hedged and the group’s risk management objective and strategy for undertaking these hedge transactions. The
effectiveness of the hedges is measured throughout the life of the hedging relationship. Ineffectiveness arises in the event of
over hedging, whereby the notional amount of the designated hedge instrument exceeds the notional amount of the
hedged item attributable to the hedged risk, or timing mismatches. Where ineffectiveness is identified, any revaluation
gains or losses on the ineffective portion of the hedging instrument are immediately recognised in the statement of profit or
loss in foreign exchange gains or foreign exchange losses or interest expense.
The effective portion of changes in the fair value of derivatives that are designated as cash flow hedges are recognised in
the cash flow hedge reserve within equity. The effective portion of changes in the fair value of derivatives that are
designated as net investment hedges are recognised in the foreign currency translation reserve within equity. Amounts
accumulated in equity are transferred to the statement of profit or loss in the period(s) in which the hedged item affects the
statement of profit or loss. Changes in the fair value of derivatives that are designated as fair value hedges are recorded in
profit or loss, together with any changes in the fair value of the hedged items that are attributable to the hedged risk. If the
fair value hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item
for which the effective interest method is used is amortised to profit or loss over the period to maturity using a recalculated
effective interest rate.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
68
C2
DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
RISK MANAGEMENT STRATEGY
The fundamental objective is to minimise risk. This is achieved by minimising the volatility in the statement of profit or loss
and variations in cash flows. The objective is not to maximise revenue or minimise costs, however in certain situations
hedging may deliver value to FLT by minimising downside risk. There is no speculation allowed and all treasury activities and
transactions must be linked to underlying business requirements.
FLT currently holds a cross currency interest rate swap which has been designated in a net investment hedge relationship.
Net investment hedge is used to hedge FLT’s exposure to the EUR foreign exchange risk on 3mundi investment. There is an
economic relationship between the hedged item and the hedging instrument as the net investment creates a translation risk
that will match the foreign exchange risk on the EUR swap. The Group has established a hedge ratio of 1:1 as the underlying
risk of the hedging instrument is identical to the hedged risk component. The effective portion of the hedge is recognised in
the foreign currency translation reserve net of tax. The hedge ineffectiveness may arise when the amount of the investment
in the foreign subsidiary becomes lower than the notional amount of the swap. This is recognised in the statement of profit
or loss in net foreign exchange gains or net foreign exchange losses.
FLT currently holds an interest rate swap which has been designated in a fair value hedge relationship. The swap is being
used to hedge the exposure to changes in the fair value of its fixed rate 1.625% convertible note. There is an economic
relationship between the hedged item and the hedging instrument as the terms of the interest rate swap match the terms of
the convertible note (i.e., notional amount, maturity, and payment). The Group has established a hedge ratio of 1:1 for the
hedging relationships as the underlying risk of the interest rate swap is identical to the hedged risk component. To test the
hedge effectiveness, the Group uses the hypothetical derivative method and compares the changes in the fair value of the
hedging instrument against the changes in fair value of the hedged item attributable to the hedged risk.
THE EFFECTS OF HEDGE ACCOUNTING
At 30 June 2024, FLT holds the following forward foreign exchange contracts (FECs) to hedge its exposure on forecast
foreign currency receipts and forecast foreign currency payments.
NOTIONAL
AMOUNT
IN LOCAL
CURRENCY
CARRYING
AMOUNT
AVERAGE
FORWARD
PRICE
CHANGE IN FAIR
VALUE USED
FOR MEASURING
INEFFECTIVENESS
FOR THE PERIOD
CASH FLOW HEDGES – 2024
000
$'000
$'000
USD
192,432
(76)
0.60
(76)
THB
171,146
(232)
1.44
(232)
JPY
88,752
(87)
23.45
(87)
EUR
69,620
(2,055)
0.53
(2,055)
GBP
33,220
(194)
12.42
(194)
Others
(944)
(944)
(3,588)
(3,588)
NOTIONAL
AMOUNT
IN LOCAL
CURRENCY
CARRYING
AMOUNT
AVERAGE
FORWARD
PRICE
CHANGE IN FAIR
VALUE USED
FOR MEASURING
INEFFECTIVENESS
FOR THE PERIOD
CASH FLOW HEDGES – 2023
000
$'000
$'000
EUR
55,350
1,067
0.62
1,067
USD
80,010
981
0.66
981
FJD
32,100
(358)
1.45
(358)
GBP
23,400
241
0.53
241
THB
155,000
(167)
22.88
(167)
Others
(167)
(167)
1,597
1,597
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
69
C2
DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
CURRENCY
CHANGE IN
VALUE USED
FOR MEASURING
INEFFECTIVENESS
CASH FLOW
HEDGE
RESERVE
CASH FLOW HEDGES – 2024
$'000
$'000
Foreign currency receipts
EUR
(2,303)
(2,303)
FJD
(629)
(629)
THB
(245)
(245)
GBP
(242)
(242)
USD
(193)
(193)
Other
(449)
(449)
Foreign currency payments
EUR
249
249
USD
117
117
ZAR
(113)
(113)
NZD
103
103
SGD
54
54
Other
65
65
(3,586)
CURRENCY
CHANGE IN
VALUE USED
FOR MEASURING
INEFFECTIVENESS
CASH FLOW
HEDGE
RESERVE
CASH FLOW HEDGES – 2023
$'000
$'000
Foreign currency receipts
USD
1,028
1,028
ZAR
(53)
(53)
SGD
(43)
(43)
NZD
(37)
(37)
CAD
(15)
(15)
EUR
12
12
Foreign currency payments
EUR
1,054
1,054
FJD
(358)
(358)
GBP
241
241
THB
(167)
(167)
JPY
(90)
(90)
Others
24
25
1,597
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
70
C2
DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
At 30 June 2024, FLT holds the following cross currency interest rate swaps and interest rate swaps to hedge its exposure on
net investments in foreign operations and convertible notes. The impact of hedging instruments designated in hedging
relationships at 30 June 2024 on the balance sheet of the group is as follows. Note these are all shown in the consolidated
balance sheet in current assets and liabilities as derivative financial instruments.
NOTIONAL
AMOUNT
CARRYING
AMOUNT
CHANGE IN
VALUE
USED FOR
MEASURING
INEFFECTIVENESS
FAIR VALUE HEDGES - 2024
$'000
$'000
$'000
Interest rate swap
400,000
23,182
(8,906)
(8,906)
FAIR VALUE HEDGES - 2023
Interest rate swap
400,000
32,088
(128)
(128)
CARRYING
AMOUNT
ACCUMULATED
FAIR VALUE
ADJUSTMENTS
CHANGE IN
VALUE
USED FOR
MEASURING
INEFFECTIVENESS
FAIR VALUE HEDGES - 2024
$'000
$'000
$'000
Convertible note
339,018
(23,182)
8,906
8,906
FAIR VALUE HEDGES - 2023
Convertible note
311,578
(32,088)
128
128
NOTIONAL
AMOUNT IN
LOCAL
CURRENCY
CARRYING
AMOUNT
CHANGE IN
VALUE
USED FOR
MEASURING
INEFFECTIVENESS
NET INVESTMENT HEDGES - 2024
000
$'000
$'000
Cross currency interest rate swap - Euro
63,925
(2,468)
804
804
NET INVESTMENT HEDGES - 2023
Cross currency interest rate swap - Euro
63,925
(3,272)
(4,963)
(4,963)
CHANGE IN
VALUE
USED FOR
MEASURING
INEFFECTIVENESS
FOREIGN
CURRENCY
TRANSLATION
RESERVE
NET INVESTMENT HEDGES - 2024
$'000
$'000
Investment in subsidiaries
804
(1,728)
804
(1,728)
NET INVESTMENT HEDGES - 2023
Investment in subsidiaries
(4,963)
(2,290)
(4,963)
(2,290)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
71
C2
DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
The impact of hedging instruments designated in hedging relationships at 30 June 2024 on the consolidated statement of
profit or loss of the group is as follows. These are all shown in the consolidated statement of profit or loss in other expenses
as net foreign exchange losses or finance costs in interest and finance charges paid/payable.
INEFFECTIVENESS
RECOGNISED IN
THE
INCOME
STATEMENT
HEDGING
GAIN /(LOSS)
RECOGNISED
IN OCI
AMOUNT
RECLASSIFIED
FROM OCI TO
THE INCOME
STATEMENT
CASH FLOW HEDGES
$'000
$'000
$'000
Hedges of forecast foreign currency transactions
2024
—
(5,507)
3,271
2023
—
966
(186)
NET INVESTMENT HEDGES
2024
—
804
—
2023
—
(4,963)
—
C3
OTHER FINANCIAL ASSETS
2024
2023
$'000
$'000
Accrued interest
2,552
2,396
Security deposits
19,516
23,056
Total current other financial assets
22,068
25,452
Loans to external parties
156
147
Security deposits
900
2,956
Total non-current other financial assets
1,056
3,103
ACCOUNTING POLICY
Loans to related parties, external parties and security deposits are measured at amortised cost, as they are held in order to
collect contractual cash flows which are solely principal and interest.
FINANCIAL RISK MANAGEMENT
FAIR VALUE
Due to their short-term nature, the carrying amounts of current other financial assets are assumed to approximate their
fair values.
The carrying amounts of non-current other financial assets equals their fair values, due to the commercial rates of interest
earned and paid respectively, and the impact of discounting is not significant.
CREDIT RISK
The maximum exposure to credit risk at the reporting period’s end is the carrying amount of other financial assets as
disclosed above, however FLT has categorised these as having an insignificant amount of credit risk and therefore no
expected credit loss has been recognised.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
72
D
REWARD AND RECOGNITION
This section provides a breakdown of the various programs FLT uses to reward and recognise employees and key
executives, including Key Management Personnel (KMP).
FLT believes that these programs reinforce the value of ownership and incentives, both of which are key parts of the
company's philosophies and culture, and drive performance both individually and collectively to deliver better returns to
shareholders.
These programs also result in changes to the group's contributed equity.
The PCRP and GRR programs were introduced as a strategic response to the profound impacts that COVID-19 restrictions
had on the business, with a focus on ensuring key executives who would be crucial to FLT’s recovery were retained while
the business recovers and during the rebuilding phase.
D1
Key management personnel
D2
Business ownership scheme (BOS)
D3
Share-based payments
• Long term retention plan (LTRP)
• Post-COVID-19 retention plan (PCRP)
• Global recovery rights (GRR)
• Employee share plan (ESP)
D4
Contributed equity and treasury shares
D1
KEY MANAGEMENT PERSONNEL
KMP COMPENSATION
2024
2023
$
$
Short-term employee benefits
7,078,652
9,276,154
Post-employment benefits
206,899
205,322
Long-term benefits
834,779
(50,008)
Share-based payments
1,561,211
2,178,140
Total KMP compensation
9,681,541
11,609,608
Detailed remuneration disclosures are provided in the remuneration report from page 21. Supporting information on Non-
Executive Directors, Executive Director and Executive KMP remuneration is included in the remuneration report from page
22.
EQUITY INSTRUMENT DISCLOSURES RELATING TO KMP
Details of LTRP, PCRP and ESP provided as remuneration to KMP and shares issued on the exercise of such, together with
terms and conditions, can be found from page 29 of the remuneration report.
OTHER TRANSACTIONS WITH KMP
Directors and specified executives receive travel services from FLT and its related companies on normal terms and
conditions to employees.
Director related companies receive travel services from FLT and its related companies on normal terms and conditions to
other customers.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
73
D2
BUSINESS OWNERSHIP SCHEME (BOS)
OVERVIEW
FLT believes it is important that its leaders see the businesses they run as their own and, under the BOS, eligible employees
(front-line team leaders) invest in unsecured notes in their businesses as an incentive to improve short and long-term
performance.
ACCOUNTING POLICY
The Australian BOS program is an ASIC-registered unsecured notes scheme. In Australia, the scheme re-commenced in
April 2022 in the Travel Associates business, November 2022 in the Travel Money business, and January 2023 in the Ignite
business.
The employees receive a variable interest return on investment based on the individual businesses performance and is,
therefore, exposed to the risks of his or her business, as neither FLT nor any of its group companies guarantees returns.
The unsecured notes are repayable within 30 days notice by either party, upon termination of the note holder’s employment
or on the 10th anniversary of the date of issue of the unsecured note. Interest is generally payable in arrears, one month
in arrears.
FLT has arrangements through its subsidiary, P4 Finance Pty Ltd (P4), to provide loans on an arm's length, commercial basis
to fund eligible business leaders’ acquisition of unsecured notes. Under the terms of these loans, unsecured note holders
agree that FLT will hold the Unsecured Note Certificate in escrow and note holders must assign the payment of funds owing
on an unsecured note to P4.
Accordingly, the group has, at a consolidated level, offset FLT's unsecured note liability and P4's loan receivable in the
group balance sheet and has also netted the interest income earned on loans provided by P4 against interest paid by FLT
on the unsecured notes.
BUSINESS OWNERSHIP SCHEME
Both the unsecured notes and loans are recorded at amortised cost.
2024
2023
$'000
$'000
Unsecured notes principal
6,240
6,240
Loans held for unsecured notes
(5,630)
(5,638)
Net unsecured notes principal
610
602
The unsecured note holders earn a variable, non-guaranteed return, based on their business's performance.
FINANCIAL RISK MANAGEMENT
Credit risk
There is no credit risk arising for BOS loans held for unsecured notes, as there is a legally enforceable right to set-off against
FLT's unsecured note liability.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
74
D2
BUSINESS OWNERSHIP SCHEME (BOS) (CONTINUED)
BOS MULTIPLIER PROGRAMME
As noted in the Remuneration Report, the key executive that has a Founder BOS in place as at June 2024 is Chris Galanty.
Melanie Waters-Ryan Founder BOS was in place as at June 2023 and paid out in accordance with its redemption terms
during the period.
During the financial year, Chris Galanty received a part early redemption payment. Refer to Statutory Remuneration and
Framework section in the remuneration report from page 24 for further information.
ACCOUNTING POLICY
A liability for the employee benefit of the potential BOS return multiple has been recognised as a provision (refer to note
F10) when there is a contractual obligation or valid expectation that payment will be made.
The BOS multiplier is recognised as current as it has vested for the KMP.
2024
2023
CURRENT
NOTE
$'000
$'000
Employee benefits
F10
7,873
12,944
D3
SHARE-BASED PAYMENTS
OVERVIEW
FLT has a number of plans which issue share rights to employees and key executives, including:
• Long Term Retention Plan (LTRP)
• Post-COVID-19 Retention Plan (PCRP)
• Global Recovery Rights (GRR)
• Employee Share Plan (ESP)
EXPENSES ARISING FROM SHARE-BASED PAYMENT TRANSACTIONS
Total expenses arising from share-based payment transactions recognised during the year as part of employee benefit
expense were as follows:
2024
2023
$'000
$'000
Long term retention plan
11,933
10,226
Post COVID-19 retention plan
510
1,269
Employee share plan
2,688
1,525
Global recovery rights plan
9,104
28,080
Total expenses arising from share-based payment transactions
24,235
41,100
Directors are not eligible to participate in the LTRP, PCRP, GRR or ESP.
ACCOUNTING POLICY AND VALUATION
The fair value of performance rights granted are recognised as an employee benefit expense with a corresponding increase
in reserves. The fair value is measured at grant date and recognised over the period during which employees become
unconditionally entitled to the rights.
The fair value at grant date is determined using the Black-Scholes option pricing model.
The fair value of the rights granted excludes the impact of any non-market vesting conditions (for example, continued
employment). Non-market vesting conditions are included in assumptions about the number of rights that are expected to
become exercisable and the length of the vesting period. At the reporting period’s end, the entity revises its estimate of the
number of rights that are expected to become exercisable and the most likely vesting period. The employee benefit
expense recognised each period takes into account the most recent estimate.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
75
D3
SHARE-BASED PAYMENTS (CONTINUED)
LONG TERM RETENTION PLAN (LTRP)
GENERAL TERMS
Invited participants are granted base rights, for no consideration, in annual tranches over a 12 year period with vesting
conditions based upon continued service. At the time base rights are granted, participants are granted a corresponding
number of matched rights for no consideration (one matched right for each base right granted). From Grant 9 there is no
split of base and matched rights and participants are granted rights, referred to as base rights below.
Rights granted under the plan carry no dividend or voting rights. When exercisable, each right is convertible into one
ordinary FLT share.
The plan’s rules stipulate that the number of shares resulting from exercising all unexercised rights cannot exceed 5% of the
company’s issued capital (currently less than 1%).
VESTING REQUIREMENTS
Base rights granted to participants for each tranche will vest on the base rights vesting dates as noted in the table below,
subject to the service condition being satisfied (participants remain employed by the company at the vesting date).
Matched rights granted to participants for each tranche will vest on the matched rights vesting dates as noted in the table
below, subject to the service condition being satisfied (participants remain employed by the company at the vesting date)
and the base rights (or shares) in respect of the respective grant continue to be held.
METHOD OF SETTLEMENT
The base rights and matched rights may be newly issued by FLT, purchased on-market or allocated from treasury shares.
VALUATION
The fair value of base and matched rights under the plan is estimated at the date of grant using a fixed dollar amount of
rights granted for each participant and the Black-Scholes option pricing model which takes into account the rights’ term, the
rights’ non-tradeable nature, the expected dividend yield and risk-free rate for the rights’ term. The fair value is recognised
in the balance sheet as part of reserves over the period that the right vests with a corresponding expense recognised in the
employee benefits costs.
GRANT
NUMBER
GRANT DATE
BASE RIGHTS
MATCHING RIGHTS
DATE/YEAR
VESTED AND
EXERCISABLE¹
EXPIRY DATE
VALUE PER
RIGHT AT
GRANT DATE
DATE/YEAR
VESTED AND
EXERCISABLE¹
EXPIRY DATE
VALUE PER
RIGHT AT
GRANT DATE
4
1 July 2018
August 2021
1 July 2030
$54.26
August 2021
1 July 2030
$54.26
4b
1 July 2018
August 2021
1 July 2030
$54.26
August 2023
1 July 2030
$51.58
5
1 July 2019
August 2022
1 July 2030
$42.06
August 2022
1 July 2030
$42.06
5b
1 July 2019
August 2021
1 July 2030
$42.06
August 2024
1 July 2030
$38.84
6
1 July 2020
August 2023
1 July 2030
$11.30
August 2023
1 July 2030
$11.30
6b
1 July 2020
August 2021
1 July 2030
$11.30
August 2023
1 July 2030
$11.30
6c
1 July 2020
August 2022
1 July 2030
$11.30
August 2024
1 July 2030
$10.79
6d
1 July 2020
August 2023
1 July 2030
$11.30
August 2023
1 July 2030
$11.30
7²
1 July 2021
August 2024
1 July 2030
$17.27
August 2024
1 July 2030
$17.27
7c
1 July 2021
August 2022
1 July 2030
$17.27
August 2024
1 July 2030
$17.27
7e²
1 July 2021
August 2023
1 July 2030
$17.26
August 2023
1 July 2030
$17.26²
8
1 July 2022
August 2025
1 July 2030
$17.02
August 2025
1 July 2030
$17.02
9
1 July 2023
August 2026
1 July 2030
$20.59
1 The vesting date is the day the Company releases full year financial results to the ASX in the year of vesting.
2 During the period, an administrative error was identified where new LTRP participants has been offered rights on 1 July 2021 to Grant 7 and Grant 7e , however the rights
had not been issued. The rights were issued during the period.
The weighted average contractual remaining life (until expiry date) is 6 years.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
76
D3
SHARE-BASED PAYMENTS (CONTINUED)
LONG TERM RETENTION PLAN (LTRP) (CONTINUED)
The LTRP rights held by executives, including those KMP separately disclosed in the remuneration report, is set out below:
BALANCE AT
START OF THE YEAR
DURING THE YEAR
BALANCE AT
END OF THE YEAR
2024
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
Grant 9
Base Rights
—
—
767,901
(33,076)
20,946
(20,946)
—
713,879
Grant 8
Base
—
418,654
—
(28,677)
11,578
(11,578)
—
378,399
Match
—
418,654
—
(28,677)
11,578
(11,578)
—
378,399
Grant 7
Base
—
339,676
—
(18,102)
16,323
(16,323)
—
305,251
Match
—
339,676
—
(18,917)
16,323
(16,323)
—
304,436
Grant 7c
Base
10,369
—
—
—
—
(5,795)
4,574
—
Match
2,291
8,078
—
—
—
—
2,291
8,078
Grant 7e
Base
—
4,691
—
—
4,691
(4,691)
—
—
Match
—
4,691
—
—
4,691
(4,691)
—
—
Grant 6
Base
—
197,319
—
—
197,319
(166,316)
31,003
—
Match
—
197,319
—
—
197,319
(175,585)
21,734
—
Grant 6b
Base
18,512
—
—
—
—
(13,375)
5,137
—
Match
—
23,417
—
—
23,417
—
23,417
—
Grant 6c
Base
13,953
—
—
—
—
(7,841)
6,112
—
Match
—
13,953
—
—
—
—
—
13,953
Grant 6d
Base
—
42,898
—
—
42,898
(27,867)
15,031
—
Match
—
42,898
—
—
42,898
(31,741)
11,157
—
Grant 5
Base
25,495
—
—
—
—
(19,328)
6,167
—
Match
26,798
—
—
—
—
(13,091)
13,707
—
Grant 5b
Base
4,355
—
—
—
—
—
4,355
—
Match
—
4,355
—
—
4,355
(4,355)
—
—
Grant 4
Base
10,032
—
—
—
—
(9,359)
673
—
Match
12,383
—
—
—
—
(7,340)
5,043
—
Grant 4b
Base
5,498
—
—
—
—
—
5,498
—
Match
—
4,030
—
—
4,030
(2,902)
1,128
—
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
77
D3
SHARE-BASED PAYMENTS (CONTINUED)
LONG TERM RETENTION PLAN (LTRP) (CONTINUED)
BALANCE AT
START OF THE YEAR
DURING THE YEAR
BALANCE AT
END OF THE YEAR
2023
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
Grant 8
Base
—
—
422,927
(4,273)
—
—
—
418,654
Match
—
—
422,927
(4,273)
—
—
—
418,654
Grant 7
Base
—
347,576
4,691
(12,591)
—
—
—
339,676
Match
—
347,576
4,691
(12,591)
—
—
—
339,676
Grant 7c
Base
—
10,369
—
—
10,369
—
10,369
—
Match
—
10,369
—
—
2,291
—
2,291
8,078
Grant 7e
Base
—
—
4,691
—
—
—
—
4,691
Match
—
—
4,691
—
—
—
—
4,691
Grant 6
Base
—
197,319
—
—
—
—
—
197,319
Match
—
197,319
—
—
—
—
—
197,319
Grant 6b
Base
23,417
—
—
—
—
(4,905)
18,512
—
Match
—
23,417
—
—
—
—
—
23,417
Grant 6c
Base
—
13,953
—
—
13,953
—
13,953
—
Match
—
13,953
—
—
—
—
—
13,953
Grant 6d
Base
—
45,207
—
(2,309)
—
—
—
42,898
Match
—
45,207
—
(2,309)
—
—
—
42,898
Grant 5
Base
—
60,828
—
—
60,828
(35,333)
25,495
—
Match
—
60,828
—
—
60,828
(34,030)
26,798
—
Grant 5b
Base
4,355
—
—
—
—
—
4,355
—
Match
—
4,355
—
—
—
—
—
4,355
Grant 4
Base
13,305
—
—
—
—
(3,273)
10,032
—
Match
14,793
—
—
—
—
(2,410)
12,383
—
Grant 4b
Base
5,498
—
—
—
—
—
5,498
—
Match
—
4,030
—
—
—
—
—
4,030
Grant 3
Base
1,691
—
—
—
—
(1,691)
—
—
Match
1,691
—
—
—
—
(1,691)
—
—
Grant 2
Base
2,341
—
—
—
—
(2,341)
—
—
Match
2,341
—
—
—
—
(2,341)
—
—
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
78
D3
SHARE-BASED PAYMENTS (CONTINUED)
POST-COVID-19 RETENTION PLAN (PCRP)
GENERAL TERMS
Invited participants are granted one-off base rights, for no consideration, with vesting conditions based upon continued
service. When these base rights are granted, participants are also granted a corresponding number of one-off matched
rights in two separate tranches for no consideration (one matched right for each base right granted).
Rights granted under the plan carry no dividend or voting rights. When exercisable, each right is convertible into one
ordinary FLT share.
The plan’s rules stipulate that the number of shares resulting from exercising all unexercised rights cannot exceed 5% of the
company’s issued capital (currently less than 1%).
VESTING REQUIREMENTS
Base rights granted to participants will vest on the base rights’ vesting date as noted in the table below, subject to the
service condition being satisfied (participants remain employed by the company at the vesting date).
Matched rights granted to participants for each tranche will vest on the matched rights’ vesting dates as noted in the table
below, subject to the service condition being satisfied (participants remain employed by the company at the vesting date)
and for Tranche 1 matched rights that the base rights (or shares) in respect of the respective grant continue to be held, and
for Tranche 2 matched rights’ that the Tranche 1 matched rights (or shares) continue to be held.
METHOD OF SETTLEMENT
The base rights and matched rights may be issued by FLT, purchased on-market or allocated from treasury shares.
VALUATION
The fair value of base and matched rights under the plan is estimated at the date of grant using the Black-Scholes option
pricing model. The fair value is allocated equally over the period from grant date to vesting date.
GRANT NUMBER
GRANT DATE
DATE/YEAR VESTED
AND EXERCISABLE¹
EXPIRY DATE
VALUE PER RIGHT AT
GRANT DATE
Grant 1
29 June 2020
Base Rights
August 2022
1 July 2031
$9.66
Matching Rights - Tranche 1
August 2023
1 July 2031
$9.25
Matching Rights - Tranche 2
August 2024
1 July 2031
$8.83
1 The vesting date is the day the Company releases full year financial results to the ASX in the year of vesting.
The weighted average contractual remaining life (until expiry date) is 7 years.
The PCRP rights held by executives, including those KMP separately disclosed in the remuneration report, is set out below:
BALANCE AT
START OF THE YEAR
BALANCE AT
END OF THE YEAR
2024
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
Grant 1
Base
459,899
—
—
—
—
(320,680)
139,219
—
Match 1
—
295,169
—
—
295,169
(153,555)
141,614
—
Match 2
—
250,169
—
(4,814)
—
—
—
245,355
2023
Grant 1
Base
—
590,338
—
—
590,338
(130,439)
459,899
—
Match 1
—
295,169
—
—
—
—
—
295,169
Match 2
—
295,169
—
(45,000)
—
—
—
250,169
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
79
D3
SHARE-BASED PAYMENTS (CONTINUED)
GLOBAL RECOVERY RIGHTS (GRR)
The GRR has identical objectives to the PCRP but is a broader program targeted at FLT’s global workforce.
GENERAL TERMS
Invited participants (all employees globally excluding board members and senior executives) are granted one-off rights, for
no consideration.
Rights granted under the plan carry no dividend or voting rights. When exercisable, each right is convertible into one
ordinary FLT share.
The plan’s rules stipulate that the number of shares resulting from exercising all unexercised rights cannot exceed 5% of the
company’s issued capital (currently less than 1%).
VESTING REQUIREMENTS
Rights granted to participants will vest on the rights’ vesting date as noted in the table below, subject to the service
condition being satisfied (participants remain employed by the company at the vesting date).
METHOD OF SETTLEMENT
The rights may be issued by FLT, purchased on-market or allocated from treasury shares.
VALUATION
The fair value of rights under the plan is estimated at the date of grant using the Black-Scholes option pricing model which
takes into account the rights’ term, the rights’ non-tradeable nature, the expected divided yield and risk-free rate over the
rights’ term. The fair value is allocated equally over the period from grant date to vesting date.
GRANT NUMBER
GRANT DATE
RIGHTS
DATE/YEAR VESTED
AND EXERCISABLE¹
EXPIRY DATE
VALUE PER RIGHT AT
GRANT DATE
Grant 1
25 June 2021
February 2023
February 2028
$15.06
Grant 2
15 June 2022
February 2024
February 2029
$17.02
1 The vesting date is the day the Company releases half year financial results to the ASX in the year of vesting
The weighted average contractual remaining life (until expiry date) for Grant 1 is 4 years, and for Grant 2, 5 years.
BALANCE AT
START OF THE YEAR
DURING THE YEAR
BALANCE AT
END OF THE YEAR
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
GRANTED
NUMBER
FORFEITED
NUMBER
VESTED
NUMBER
EXERCISED
NUMBER
VESTED AND
EXERCISABLE
NUMBER
UNVESTED
NUMBER
2024
Grant 2
—
1,781,809
—
(497,145)
1,781,809
(967,821)
316,843
—
Grant 1
737,988
—
—
(53,270)
—
(324,586)
360,132
—
2023
Grant 2
—
—
1,829,841
(48,032)
—
—
—
1,781,809
Grant 1
—
1,647,288
—
(155,614)
1,491,674
(753,686)
737,988
—
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
80
D3
SHARE-BASED PAYMENTS (CONTINUED)
EMPLOYEE SHARE PLAN (ESP)
GENERAL TERMS
Eligible employees are granted a conditional right to one matched share for every two shares purchased (for cash
consideration), subject to vesting conditions.
Employees are eligible to participate if they have been employed full time or permanent part-time for at least three months.
VESTING REQUIREMENTS
A participant must hold the acquired shares for a period of two years and one month and still be employed with FLT at the
end of that time. If acquired shares are sold before the end of the vesting period, conditional rights to the matched shares
are forfeited.
METHOD OF SETTLEMENT
A participant who satisfies the vesting conditions will become entitled to the matched shares on the last day of the
vesting period.
The matched shares may be newly issued by FLT, purchased on-market or allocated from treasury shares.
VALUATION – ACQUIRED SHARES
The market value of shares issued under the plan, measured as the weighted average price at which FLT’s shares are traded
on the ASX during the five days following the date on which the contributions are paid, is recognised in the balance sheet as
an issue of shares in the period the shares are acquired by the employee.
VALUATION – MATCHED SHARES
The fair value of matched shares allocated (but not issued) under the plan is estimated at the date of grant using the Black-
Scholes option pricing model which takes into account the rights’ term, the rights’ non-tradeable nature, the expected
divided yield and risk-free rate over the rights’ term and is recognised in the balance sheet as part of reserves over the
period that the matched share vests with a corresponding expense recognised in the employee benefits costs.
NUMBER OF MATCHED SHARES
NOTES
2024
2023
Issued under the plan to participating employees
37,463
42,467
Allocated from the share trust to participating employees
57,423
52,290
Purchased on-market under the plan to participating employees
27,927
25,787
122,813
120,544
Weighted average market price of matched shares:
Issued
$0.00
$0.00
Allocated from share trust
$21.82
$18.60
Purchased on-market
$21.47
$17.60
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
81
D4
CONTRIBUTED EQUITY AND TREASURY SHARES
OVERVIEW
Typically movements in contributed equity relate to shares issued under the ESP, which reinforces the importance that FLT
places on ownership to drive business performance and overall results. Where shares in FLT are acquired y on-market
purchases prior to settling the vested entitlement, the cost of the acquired shares is carried as treasury shares and deducted
from equity.
RECONCILIATION OF ORDINARY SHARE CAPITAL:
The following reconciliation summarises the movements in authorised and issued capital during the year.
Issues of a similar nature have been grouped and the issue price shown is the weighted average. Detailed information on
each issue of shares is publicly available via the ASX.
DETAILS
NOTES
NUMBER OF
SHARES
WEIGHTED
AVERAGE ISSUE
PRICE
$'000
Opening balance at 1 July 2022
199,813,184
1,105,711
ESP
365,258
$17.25
6,302
ESP matched shares
D3
42,467
—
—
Treasury shares
1,416,799
$18.48
26,180
Institutional placement and share purchase plan
16,437,951
$14.60
239,994
Equity raising transaction costs
—
—
(5,137)
Deferred tax on equity raising transaction costs
F12
—
—
1,542
Closing balance at 30 June 2023
218,075,659
1,374,592
ESP
370,636
$20.32
7,532
Treasury shares
2,585,037
$21.57
55,764
Closing balance at 30 June 2024
221,031,332
1,437,888
RECONCILIATION OF TREASURY SHARES:
The following reconciliation summarises the movements in treasury shares held in a share trust for future allocation to
employee share plans. Items of a similar nature have been grouped and the price shown is the weighted average.
DETAILS
NOTES
NUMBER OF
SHARES
WEIGHTED
AVERAGE
PRICE
$'000
Opening balance at 1 July 2022
(65,176)
—
(1,055)
Issue of shares through share trust
(1,782,254)
$18.36
(32,720)
Allocation of shares to ESP matched shares
D3
78,077
$18.25
1,425
Allocation of shares to LTRP
142,051
$16.90
2,401
Allocation of shares to PCRP
77,137
$16.94
1,307
Allocation of shares to GRR
753,686
$18.67
14,069
Gain in equity on allocation of shares
(175)
Closing balance at 30 June 2023
(796,479)
(14,748)
Issue of shares through share trust
(2,585,037)
$21.57
(55,764)
Allocation of shares to ESP matched shares
113,389
$20.84
2,363
Allocation of shares to LTRP
420,482
$20.30
8,591
Allocation of shares to PCRP
447,584
$20.26
9,069
Allocation of shares to GRR
1,111,814
$20.90
23,236
Gain in equity on allocation of shares
(547)
Closing balance at 30 June 2024
(1,288,247)
(27,800)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
82
E
RELATED PARTIES
This section provides information relating to the FLT group related parties and the extent of related party transactions
within the group and the impact they had on the group’s financial performance and position.
E1
Investments accounted for using the equity method
E2
Related party transactions
E1
INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
OVERVIEW
ASSOCIATES
FLT has a 50% shareholding in Evolve Travel Limited (ETL), a New Zealand based entity that has the purpose of creating
stronger preferred supplier arrangements with an independent travel group for the mutual benefit of both parties.
JOINT VENTURES
FLT holds a 46.8% shareholding in Pedal Group Pty Ltd (2023: 46.9%). FLT continues to have joint control. Significant
shareholdings in Pedal Group include a 100% shareholding in 99 Bikes Pty Ltd and 99 Bikes NZ Limited, a Brisbane and
Auckland based national chain of retail bike stores, and a 100% shareholding in Advance Traders (Australia) Pty Ltd and
Advance Traders (New Zealand) Limited, Brisbane and Auckland based wholesale bike companies and a 100% shareholding
in PGP Co Pty Ltd, a Brisbane based property purchasing company for 99 Bikes leases.
Contractual arrangements are in place to establish joint control over each entity’s economic activities, including financial and
operating decisions.
SHARE OF JOINT VENTURE AND ASSOCIATES CARRYING VALUE AND RESULTS
Joint venture and associates information is presented in accordance with the accounting policy described in note I(c)(ii) and
is set out below.
2024
2023
$'000
$'000
Interest in joint ventures
43,159
45,594
Interest in associates
5
5
Total interest in joint ventures and associates
43,164
45,599
2024
2023
SHARE OF RESULTS
$'000
$'000
(Loss) from joint ventures
(2,435)
(4,084)
Profit from associates
—
—
Total comprehensive (loss)
(2,435)
(4,084)
CONTRACTUAL COMMITMENTS
FLT has no commitments in relation to its joint venture and associate entities at 30 June 2024 (2023: nil).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
83
E2
RELATED PARTY TRANSACTIONS
PARENT ENTITY
FLT is the ultimate parent entity within the group.
SUBSIDIARIES AND JOINT VENTURES
Interests in subsidiaries are set out in note G1 and interests in joint ventures and associate are set out in note E1.
FLT is a joint venture (JV) partner in Pedal Group Pty Ltd. The other JV partners are related parties, namely Graham Turner’s
family company, Gainsdale Pty Ltd 21.83% (2023: 21.88%), and Graham Turner's son, Matthew Turner’s family companies
Hootie Blowfish Pty Ltd 14.12% (2023: 14.14%), Counting Crows Pty Ltd 0.38% (2023: 0.24%) and his direct employee share
plan holdings of 0.39% (2023: 0.40%). The remaining 16.48% (2023: 16.43%) is held by other minor parties including Pedal
Group employees who are not considered related parties.
KMP COMPENSATION AND OTHER TRANSACTIONS
KMP disclosures are set out in note D1.
TRANSACTIONS WITH RELATED PARTIES
2024
2023
Income from joint venture & associate-related parties
$
$
Management fees
625
17,435
Travel and conference
4,900
111,624
Other
42,394
397,733
Expenses to joint venture & associate-related parties
Override distributions
2,095,253
2,393,059
Income from director-related entities
Travel and conference
874,396
1,310,539
Other
55,040
—
Expenses to director-related entities
Conference expense
359,786
111,574
Membership expense¹
1,045,277
355,800
1 Graham Turner as Director on Industry Body, Australian Travel Industry Association (ATIA), previously known as Australian Federation of Travel Agents Limited (AFTA).
From time to time, related entities may enter into transactions with FLT. These transactions are on the same terms and
conditions as those entered into by other FLT subsidiaries or customers.
Joint venture and associate related parties can choose to use FLT group purchasing ability and any costs incurred are
passed directly through. These transactions are included in the disclosure above.
OUTSTANDING BALANCES
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:
2024
2023
Joint ventures & associates
$
$
Current receivables
1,006
994
Current payables
—
130,789
Director-related entities
Current receivables
1,986,008
2,442,592
Current payables
359
—
No provisions for doubtful debts have been raised in relation to any outstanding balances and no expenses have been
recognised in respect of bad or doubtful debts due from related parties.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
84
E2
RELATED PARTY TRANSACTIONS (CONTINUED)
LOANS TO RELATED PARTIES
Loans to KMP, joint venture and associate related parties were nil during the current year and prior year.
GUARANTEES
FLT has provided company guarantees to the suppliers of Pedal Group joint venture of $8,995,502 (2023: $9,046,000). The JV
partners, Gainsdale Pty Ltd and Hootie Blowfish Pty Ltd, provide full indemnity to FLT up to their respective Pedal Group
shareholding percentages. No liability was recognised as the guarantee’s fair values are immaterial.
TERMS AND CONDITIONS
All other transactions were made on normal commercial terms and conditions and at market rates. Outstanding balances are
unsecured and are repayable in cash.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
85
F
OTHER INFORMATION
This section provides the remaining information relating to the FLT financial report that must be disclosed to comply with
the accounting standards and other pronouncements.
F1
Employee benefits expense
F2
Earnings per share
F3
Trade receivables
F4
Contract assets
F5
Other assets
F6
Property, plant and equipment
F7
Leases
F8
Trade and other payables
F9
Contract liabilities
F10
Provisions
F11
Reserves
F12
Tax
F13
Auditor’s remuneration
F1
EMPLOYEE BENEFITS EXPENSE
EMPLOYEE BENEFITS EXPENSE
2024
2023
NOTES
$'000
$'000
Defined contribution superannuation expense
77,087
63,430
Share based payments expense
D3
24,235
41,100
Other employee benefits expense
1,319,346
1,193,463
Total employee benefits expense
1,420,668
1,297,993
Staff numbers (full-time equivalents)
12,514
13,065
In addition to the employee benefits expense disclosed above, ‘Tour, hotel & cruise operations - Cost of sales’ in the
statement of profit or loss includes $5,285,000 (2023: $3,914,000) relating to employee costs directly attributable to the
delivery of tour and hotel services.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
86
F2
EARNINGS PER SHARE
OVERVIEW
Statutory earnings per share (EPS) was 63.7 cents (2023: 23.1 cents), an increase of 175.8% on the prior comparative period.
At an underlying level1, EPS increased 98.1% to 105.0 cents (2023: profit 53.0 cents²).
2024
2023
CENTS
CENTS
RESTATED
Basic earnings / (loss) per share
Profit attributable to the company’s ordinary equity holders
63.7
23.1
Diluted earnings / (loss) per share
Profit attributable to the company’s ordinary equity holders
50.2
22.5
Reconciliation of earnings used in calculating EPS
$'000
$'000
Profit attributable to the company’s ordinary equity holders used in calculating basic earnings per
share
139,638
47,461
Profit attributable to the company’s ordinary equity holders used in calculating diluted earnings
per share3
120,733
47,461
Weighted average number of shares used as the denominator
NUMBER
NUMBER
Weighted average number of ordinary shares used as the denominator in calculating basic
earnings per share4
219,190,058
205,165,141
Adjustments for calculation of diluted earnings per share:
Share rights and convertible note options
21,495,941
6,095,311
Weighted average number of ordinary shares used in calculating diluted earnings per share
240,685,999
211,260,452
1 Underlying EPS are unaudited, non-IFRS measures. Refer to note A1 for breakdown of underlying PBT used in the calculation of underlying EPS. Underlying NPAT includes
the tax impact of underlying adjustments of ($10,220,000) (2023: ($7,177,000)).
2 Amortisation of convertible notes has been included as an underlying adjustment in the current period, with prior period comparative amounts restated. Prior period
underlying EPS has been restated.
3 Diluted EPS is lower than basic EPS primarily due to the other income and finance costs recognised in relation to the convertible notes. Refer to note B5.
4 The basic EPS denominator is the aggregate of the weighted average number of ordinary shares.
INFORMATION CONCERNING THE CLASSIFICATION OF SECURITIES
LTRP, PCRP, GRR, & ESP
Rights granted under the LTRP, PCRP, GRR and entitlements to matched shares under the ESP are considered contingently
issuable ordinary shares as at 30 June 2024. They are included in the determination of diluted earnings per share to the
extent to which they are dilutive, based on the number of shares that would be issuable if the end of the period were the
end of the contingency period.
The rights are not included in the determination of basic earnings per share. Details of the incentive plans are set out in
note D3.
CONVERTIBLE NOTES
Convertible notes issued during prior years and which are convertible into 31,292,372 shares were excluded from the diluted
weighted average number of ordinary shares calculation at 30 June 2024. If the notes were converted into shares, favourable
profit adjustments relating to interest expense and valuation of derivatives used to hedge interest exposure would result in
an anti-dilutive effect on earnings per share. Details relating to the convertible notes are set out in note B5.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
87
F3
TRADE RECEIVABLES
2024
2023
$'000
$'000
Trade receivables
907,956
866,591
Less: Provision for impairment of receivables
(22,608)
(31,826)
Total trade receivables
885,348
834,765
ACCOUNTING POLICY
FLT has applied the simplified approach for provisioning for expected credit losses prescribed by AASB 9. Additional
information on trade receivables accounting policies is included in note I (m).
FINANCIAL RISK MANAGEMENT
MARKET RISK
Interest rate risk
Receivables are generally non-interest bearing and are not, therefore, subject to interest rate risk. The exception is other
receivables, which generally arise from transactions outside the group’s usual operating activities. Interest may be charged
at commercial rates where the repayment terms exceed six months. Collateral is not normally obtained.
Foreign exchange risk
The group operates internationally and is subject to foreign exchange risk arising from exposure to foreign currencies.
In addition to identifying foreign exchange risk likely to arise from future commercial transactions, group treasury recognises
assets and liabilities in foreign currencies and, where appropriate, uses forward exchange contracts to reduce foreign
currency risk.
The group’s exposure to foreign currency risk on trade receivables at the end of the reporting period is set out below in
Australian dollars:
2024
2023
TRADE RECEIVABLES
$'000
$'000
United States Dollar
30,019
59,731
New Zealand Dollar
13,714
13,867
United Kingdom Pound
5,143
6,301
Switzerland Franc
5,013
—
Viet Nam Dong
4,967
—
Euro Member Countries
3,276
1,586
South Africa Rand
3,095
3,156
Indonesia Rupiah
2,874
—
Singapore Dollar
57
—
Other
9,118
7,763
Foreign exchange risk on trade payables is set out in note F8.
FAIR VALUE
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value.
CREDIT RISK
Credit risk arises from exposure to corporate, leisure and other customers, including outstanding receivables and committed
transactions. The maximum exposure to credit risk at the reporting period’s end is the receivables carrying amount. The
group does not hold collateral as security. Credit risk exposure is monitored regularly as per below:
Corporate
Corporate clients’ credit quality is assessed by analysing external credit ratings and financial position where appropriate.
Individual risk limits are established for all corporate customers, in accordance with corporate credit policy, with regular
monitoring and reporting to management.
Leisure
Agency and principal sales to end-consumers are typically settled in cash or via major credit cards at time of booking,
reducing trade receivables balances and mitigating credit risk. Independent agents' credit quality is assessed by analysing
external credit ratings and financial position where appropriate. Independent agents’ debtors are subject to weekly payment
sweeps and are generally settled before payment is required to the supplier therefore mitigating credit risk.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
88
F3
TRADE RECEIVABLES (CONTINUED)
Product suppliers
Receivables are due from suppliers in relation to overrrides, commissions, refunds and other revenue streams.
Suppliers’ credit quality is assessed and the provisions increased based on assumptions around the deterioration in ageing,
known or expected financial difficulty of customers and individual customer credit risk assessment with reference to external
rating agencies and industry.
Other
Concentration of risk in respect of remaining receivables, which includes receivables from government agencies, is
considered low.
PROVISION FOR IMPAIRMENT OF RECEIVABLES
2024
2023
Movements in the provision for impairment of receivables are as follows:
NOTES
$'000
$'000
Balance at 1 July 2023
31,826
28,000
Bad debts (reversal) / expense¹
A4
(2,835)
2,400
Changes due to foreign exchange translation
295
1,426
Receivables written off during the year as uncollectible
or reversed due to collectability2
(6,678)
—
Balance at 30 June 2024
22,608
31,826
1 The creation and release of the provision for impairment of receivables is included in other expenses (refer note A4) in the statement of profit or loss.
2 The provision has reduced based on customer payments being received and removing customer balances where recoverability is highly unlikely. At risk customers were
provided for in FY23 and continue to be provided for in FY24 unless payment has been received.
F4
CONTRACT ASSETS
2024
2023
$'000
$'000
Volume incentive receivables
239,006
259,681
Accrued revenue
75,555
61,250
Loss allowance
(13,919)
(3,353)
Total contract assets
300,642
317,578
ACCOUNTING POLICY
A contract asset is the right to consideration in relation to volume incentive payments received from suppliers for achieving
annual targets and other services transferred to the customer (under AASB 15) in advance of payment. If services are
transferred to a customer before the customer pays consideration or before payment is due, a contract asset is recognised
for the earned consideration that is conditional.
Refer to note A2 for accounting policy on recognition of volume incentive receivables.
SIGNIFICANT CHANGES IN CONTRACT ASSETS
The movement in contract assets each period is dependent on the contract period, volume, tier levels, rebate rates and
payment terms as negotiated with each individual supplier.
FINANCIAL RISK MANAGEMENT
MARKET RISK
Interest rate risk
Contract assets are generally non-interest bearing and are not, therefore, subject to interest rate risk. Collateral is not
normally obtained.
Foreign exchange risk
The group operates internationally and is subject to foreign exchange risk on contract assets arising from exposure to
foreign currencies. In addition to identifying foreign exchange risk likely to arise from future commercial transactions, group
treasury recognises assets and liabilities in foreign currencies and, where appropriate, uses forward exchange contracts to
reduce foreign currency risk.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
89
F4
CONTRACT ASSETS (CONTINUED)
2024
2023
CONTRACT ASSETS
$'000
$'000
United States Dollar
65,564
94,128
Singapore Dollar
31,947
6,031
Euro Member Countries
15,769
21,589
United Kingdom Pound
1,444
2,074
Fiji Dollar
1,451
663
Other
1,515
4,541
FAIR VALUE
Due to the short-term nature of these assets, their carrying amount is assumed to approximate their fair value.
CREDIT RISK
Credit risk arises from exposure to suppliers, including outstanding receivables and committed transactions.
Credit risk management assesses supplier and corporate clients’ credit quality by analysing external credit ratings and
financial position where appropriate. Regular monitoring and reporting to management is performed.
The maximum exposure to credit risk at the reporting period’s end is the contract assets carrying amount. The group does
not hold collateral as security.
LOSS ALLOWANCE OF CONTRACT ASSETS
NOTES
2024
2023
Movements in the loss allowance of contract assets are as follows:
$'000
$'000
Balance at 1 July
3,353
9,203
Loss allowance expense
A4
10,828
1,754
Changes due to foreign exchange translation
(262)
—
Contract assets written off during the year as uncollectible or reversed due to
collectability
—
(7,604)
Balance at 30 June
13,919
3,353
FLT has recorded a significant increase in the loss allowance provision during the current year. The group recorded an
expected credit loss of $10.7m on contract assets due to deteriorated creditworthiness of REX airlines as of 30 June 2024.
This has been recognised as a bad debts expense and disclosed separately in the supplier loss line. Refer note A4.
F5
OTHER ASSETS
2024
2023
$'000
$'000
GST / consumption tax receivable
11,397
7,772
Inventories
28,305
15,718
Prepayments
58,215
51,371
Fulfilment assets
5,784
7,627
Total current other assets
103,701
82,488
Inventories
17,438
11,808
Prepayments
364
1,220
Fulfilment assets
8,900
8,580
Total non-current other assets
26,702
21,608
FULFILMENT ASSETS
Contract costs may be eligible for capitalisation as fulfilment assets and are amortised over the contract period, refer
note A2.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
90
F6
PROPERTY, PLANT AND EQUIPMENT
ACCOUNTING POLICY
USEFUL LIVES
Land is not depreciated. For other assets, depreciation is calculated using the straight-line method to allocate their cost or
revalued amounts, net of their residual values, over their estimated useful lives, as follows:
• Buildings 30 years
• Plant and equipment 2 - 8 years
The assets’ residual values and useful lives are reviewed and adjusted if appropriate at each reporting period’s end.
Additional information on property, plant and equipment accounting policies is included in note I (n).
FREEHOLD
LAND &
BUILDINGS
PLANT &
EQUIPMENT
TOTAL
OPENING BALANCE AT 1 JULY 2022
NOTES
$'000
$'000
$'000
Cost
5,751
309,629
315,380
Accumulated depreciation
(2,583)
(239,708)
(242,291)
Net book amount at 1 July 2022
3,168
69,921
73,089
Additions
22
21,357
21,379
Acquisitions
—
250
250
Disposals¹
—
(281)
(281)
Depreciation expense
(140)
(26,217)
(26,357)
Exchange differences
(309)
(1,118)
(1,427)
Net book amount at 30 June 2023
2,741
63,912
66,653
OPENING BALANCE AT 1 JULY 2023
Cost
5,483
325,522
331,005
Accumulated depreciation
(2,742)
(261,610)
(264,352)
Net book amount at 1 July 2023
2,741
63,912
66,653
Additions
—
21,708
21,708
Disposals¹
—
(4,072)
(4,072)
Depreciation expense
(19)
(22,096)
(22,115)
Exchange differences
66
359
425
Net book amount at 30 June 2024
2,788
59,811
62,599
AT 30 JUNE 2024
Cost
5,580
310,498
316,078
Accumulated depreciation
(2,792)
(250,687)
(253,479)
Net book amount at 30 June 2024
2,788
59,811
62,599
1 Balances shown net of accumulated depreciation.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
91
F7
LEASES
This note provides information for leases where the group is a lessee.
AMOUNTS RECOGNISED IN THE STATEMENT OF PROFIT OR LOSS
2024
2023
NOTES
$'000
$'000
Rent income from sub-leasing of right-of-use assets
A3
7,305
9,157
Interest expense on lease liabilities
A4
(9,789)
(7,295)
Rental expense relating to short-term and low-value leases
A4
(9,124)
(5,192)
Depreciation/amortisation expense of right-of-use assets
(78,623)
(76,847)
(90,231)
(80,177)
AMOUNTS RECOGNISED IN THE BALANCE SHEET
RIGHT OF USE ASSETS
LEASE
LIABILITIES
PROPERTY
VEHICLES
OFFICE
EQUIPMENT
SOFTWARE
TOTAL
TOTAL
$'000
$'000
$'000
$'000
$'000
$'000
Balance as at 1 July 2022
197,890
3
300
337
198,530
286,051
Additions
23,740
363
—
—
24,103
23,838
Disposals
(2,522)
—
—
—
(2,522)
(4,423)
Depreciation and amortisation expense
(76,325)
(108)
(154)
(260)
(76,847)
—
Impairment reversal
328
—
—
—
328
—
Lease modifications
50,503
—
—
—
50,503
49,257
Interest expense
—
—
—
—
—
7,295
Lease liability repayment
—
—
—
—
—
(107,268)
Exchange differences
2,526
(94)
3
1
2,436
4,673
Balance as at 30 June 2023
196,140
164
149
78
196,531
259,423
Balance as at 1 July 2023
196,140
164
149
78
196,531
259,423
Additions
19,846
1,340
—
—
21,186
21,186
Disposals
(683)
(241)
—
—
(924)
(1,076)
Depreciation and amortisation expense
(78,128)
(294)
(124)
(77)
(78,623)
—
Impairment
(3,442)
—
—
—
(3,442)
—
Lease modifications
67,880
—
—
—
67,880
67,347
Interest expense
—
—
—
—
—
9,789
Lease liability repayment
—
—
—
—
—
(100,340)
Exchange differences
(1,323)
163
25
(1)
(1,136)
(1,764)
Balance as at 30 June 2024
200,290
1,132
50
—
201,472
254,565
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
92
F7
LEASES (CONTINUED)
CURRENT AND NON-CURRENT CLASSIFICATIONS
2024
2023
$'000
$'000
Current
80,752
81,869
Non-current
173,813
177,554
Total lease liabilities
254,565
259,423
Refer to note C1 for contractual undiscounted cashflows and maturity analysis.
AMOUNTS RECOGNISED IN THE STATEMENT OF CASHFLOW
2024
2023
$'000
$'000
Operating - payments of interest
(9,789)
(7,295)
Financing - payments of principal
(90,551)
(99,973)
Financing - lease surrender payments
(236)
(661)
Total cash (outflow) relating to leases
(100,576)
(107,929)
ACCOUNTING POLICY
FLT leases various offices, retail stores, equipment, vehicles and software. Rental contracts are typically made for fixed
periods of 1 year to 6 years.
Contracts may contain both lease and non-lease components. For leases of real estate for which the group is a lessee, it has
elected not to separate lease and non-lease components and instead accounts for these as a single lease component.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the
commencement date
• amounts expected to be payable by the group under residual value guarantees
• the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset
in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the group:
• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to
reflect changes in financing conditions since third party financing was received
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by FLT, which
does not have recent third party financing, and
• makes adjustments specific to the lease, eg term, country, currency and security.
FLT is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in
the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease
liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
93
F7
LEASES (CONTINUED)
ACCOUNTING POLICY (CONTINUED)
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line
basis. If the group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the
underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-
value assets comprise IT equipment and small items of office furniture with a value less than US$5,000 (AUD $7,500).
A sale and leaseback is one where FLT sells an asset and immediately reacquires the use of the asset or a portion of the
asset by entering into a lease with the buyer. The gain is recognised immediately in other income in the statement of profit
or loss. The right-of-use asset is measured as a proportion of the previous carrying amount of the underlying asset, reflecting
the rights retained under the leaseback.
SIGNIFICANT JUDGEMENT IN DETERMINING THE LEASE TERM OF CONTRACTS WITH RENEWAL OPTIONS
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised. Majority of FLT’s leases are renegotiated, therefore the renewal options
are not typically exercised.
IMPAIRMENT
CURRENT YEAR
The impairment expense of $3,442,000 in the current period relates to right-of-use asset property that is no longer being
utilised by FLT.
PRIOR YEAR
The impairment reversal of $328,000 in the prior period related to the reversal of impairment on right-of-use asset property
that were originally not being utilised by FLT but have subsequently been sub-leased to external parties.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
94
F8
TRADE AND OTHER PAYABLES
2024
2023
CURRENT
$'000
$'000
Trade payables
743,759
668,883
Client creditors
712,332
722,624
Other trade creditors
252,462
245,792
GST / consumption tax payable
11,496
4,813
Accrued unsecured note interest
268
251
Annual leave
45,309
42,237
Total current trade and other payables
1,765,626
1,684,600
FINANCIAL RISK MANAGEMENT
MARKET RISK
Foreign exchange risk
The group’s exposure to foreign currency risk on trade and other payables at the end of the reporting period is set out
below:
2024
2023
$'000
$'000
United States Dollar
103,169
84,432
Euro Member Countries
47,323
36,566
Fiji Dollar
45,913
43,938
United Kingdom Pound
15,200
12,425
New Zealand Dollar
24,460
19,683
Thailand Baht
12,485
5,178
Viet Nam Dong
11,665
—
Singapore Dollar
6,212
5,847
Indonesia Rupiah
6,484
—
South Africa Rand
5,999
—
Other
15,439
11,515
Refer to note F3 for the group’s approach to foreign exchange risk and the group's exposure to foreign currency risk on
trade and other receivables.
FAIR VALUE
The trade and other payables' carrying amounts are assumed to approximate their fair values given their short term nature.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
95
F9
CONTRACT LIABILITIES
2024
2023
CURRENT
$'000
$'000
Deferred revenue
89,218
68,246
Revenue constraint
1,776
3,751
Total contract liabilities
90,994
71,997
NON-CURRENT
Deferred revenue
32,135
27,077
Total non-current contract liabilities
32,135
27,077
ACCOUNTING POLICY
DEFERRED REVENUE
Deferred revenue is a contract liability that typically relates to revenue received in advance for tours and cruise cabins and
lump sum payments from suppliers. It represents revenue received in advance of the completion of the performance
obligation under the contract. It is recognised when the consideration is received or is due (whichever is earlier).
Deferred revenue is released to the statement of profit or loss as the performance obligation is met.
REVENUE CONSTRAINT
FLT has recognised a contract liability which recognises the uncertainty that the travel may be cancelled prior to departure.
This is calculated using booking volumes and margins, known or anticipated travel restrictions and cancellation probability
rate based on trading patterns.
SIGNIFICANT CHANGES IN CONTRACT LIABILITIES
The movement in deferred revenue is dependent on timing and volume of tours and cruises at each reporting period and
any significant lump sum payments received within a contract period.
Revenue released from opening deferred revenue to the statement of profit or loss during the year was $65,158,000 (2023:
$38,178,000).
The revenue constraint has reduced in the current year as refunds have been paid to the end consumers, decreasing
cancellation rates and less travel uncertainty.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
96
F10
PROVISIONS
2024
2023
CURRENT
NOTES
$'000
$'000
Employee benefits - long service leave
41,859
37,908
Employee benefits - BOS Multiplier
D2
7,873
12,944
Make good provision
3,061
4,482
Total current provisions
52,793
55,334
NON-CURRENT
Employee benefits - long service leave
14,781
14,847
Make good provision
11,305
12,488
Total non-current provisions
26,086
27,335
MOVEMENTS IN PROVISIONS
Movements in each class of provision, other than employee benefits, for the financial year are set out below:
MAKE GOOD
PROVISION
NOTES
$'000
Carrying amount at 1 July 2023
16,970
Additional provisions recognised
482
Increase in discounted amount arising from passage of time and discount rate adjustments
A4
294
Reassessment of existing provision during the period
(1,250)
Utilised
(2,175)
Other changes
45
Carrying amount at 30 June 2024
14,366
LONG SERVICE LEAVE (LSL)
AMOUNTS NOT EXPECTED TO BE SETTLED WITHIN 12 MONTHS
The current portion of the LSL provision represents the amount where the group does not have an unconditional right to
defer settlement for at least 12 months after the reporting date, as the employees have completed the required service
period and also certain circumstances where employees are entitled to pro-rata payments. However, based on past
experience, the group does not expect all employees to take the full amount of accrued long service leave or require
payment within the next 12 months.
The following amounts reflect this leave that is not expected to be taken or paid within the next 12 months:
2024
2023
$'000
$'000
Long service leave obligations expected to be settled after 12 months
36,255
31,392
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
97
F11
RESERVES
2024
2023
Reserves
NOTES
$'000
$'000
Cash flow hedge reserve
(710)
855
Share-based payments reserve
49,080
83,600
Acquisition Reserve
(44,602)
(44,602)
Foreign currency translation reserve
53,925
62,304
Equity component of convertible note
74,986
91,335
Financial assets at FVOCI reserve
(286)
—
Other reserves
(424)
(424)
Total reserves
131,969
193,068
MOVEMENTS IN RESERVES:
(A)
CASH FLOW HEDGE RESERVE
Balance 1 July
855
309
(Losses) / gains on FEC cash flow hedges
(5,507)
966
Reclassified to profit or loss
3,271
(186)
Deferred tax
F12
671
(234)
Balance 30 June
(710)
855
FLT apply hedge accounting under AASB 9 Financial Instruments. See note C2 for further details.
The cash flow hedge reserve is used to record gains or losses on hedging instruments on a cash flow hedge that are
recorded as other comprehensive income. Amounts are reclassified to the statement of profit or loss in accordance with our
hedging policy as described in note C2.
No ineffectiveness (2023: Nil) has been recognised in the statement of profit or loss.
(B)
SHARE-BASED PAYMENTS RESERVE
Balance 1 July
83,600
67,381
Share-based payments expense
12,484
31,368
Treasury share transactions
(42,712)
(12,486)
Deferred tax
F12
(4,292)
(2,663)
Balance 30 June
49,080
83,600
The share-based payments reserve is used to recognise the fair value of rights issued under the LTRP, PCRP, ESP, and GRR
as they vest over the vesting period.
(C)
FOREIGN CURRENCY TRANSLATION RESERVE
Balance 1 July
62,304
22,461
Gains / (losses) on net investment hedge
804
(4,963)
Deferred tax
F12
(214)
1,489
Net exchange differences on translation of foreign operations
(8,969)
43,317
Balance 30 June
53,925
62,304
Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive income,
as described in note I (d), and accumulated in a separate reserve within equity. The cumulative amount is reclassified to
profit or loss when the net investment is disposed.
(D)
EQUITY COMPONENT OF CONVERTIBLE NOTE
Balance 1 July
91,335
91,335
Repurchase of convertible notes due November 2027
B5
(23,356)
—
Deferred tax
F12
7,007
—
Balance 30 June
74,986
91,335
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
98
F12
TAX
(A)
INCOME TAX EXPENSE
(I)
INCOME TAX EXPENSE / (CREDIT)
2024
2023
$'000
$'000
Current tax
36,659
10,781
Deferred tax
50,178
10,979
Adjustments for current tax of prior periods
(6,284)
1,287
Income tax expense
80,553
23,047
Deferred income tax (benefit) / expense included in income tax comprises:
Decrease / (Increase) in deferred tax assets
17,681
(2,945)
Increase in deferred tax liabilities
20,116
10,081
Prior period adjustments
12,381
3,843
50,178
10,979
Numerical reconciliation of income tax to prima facie tax (receivable) / payable
Profit before Income tax expense
219,708
70,459
Tax at the Australian tax rate of 30% (2023 - 30%)
65,912
21,138
Tax effect of amounts in calculating taxable income:
Non-deductible amounts
2,571
1,977
Deductible amounts
(626)
(12)
Interest denial
873
5,829
Legal costs
246
1,093
Intangibles
(804)
(243)
Investments
6,060
(479)
Share based payments
2,292
4,532
Property, plant and equipment
(96)
(1,418)
Changes in tax rate
—
—
Other amounts
(2,804)
(4,449)
73,624
27,968
Tax losses not recognised
17,800
1,340
Tax losses recognised
(4,383)
(7,258)
Effect of different tax rates on overseas income
(204)
(290)
(Over) / Under provision of prior year’s income tax
(6,284)
1,287
6,929
(4,921)
Income tax expense
80,553
23,047
(II)
AMOUNTS RECOGNISED DIRECTLY IN EQUITY
Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss and other
comprehensive income is directly debited or credited to equity.
2024
2023
Net deferred tax - (credited) / debited directly to equity
NOTES
$'000
$'000
Share-based payments reserve
F11
4,292
2,663
Equity component of convertible note
F11
(7,007)
—
Equity raising
D4
—
(1,542)
(III)
TAX EXPENSE / (INCOME) RELATING TO ITEMS OF OTHER COMPREHENSIVE INCOME
Cash flow hedges
F11
(671)
234
Net investment hedge
F11
214
(1,489)
Total tax credit relating to items of other comprehensive income
(457)
(1,255)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
99
F12
TAX (CONTINUED)
(IV)
UNRECOGNISED POTENTIAL DEFERRED TAX ASSETS
2024
2023
$'000
$'000
Unused tax losses for which no deferred tax asset has been recognised (non-capital)
112,583
60,112
Temporary differences relating to brand name impairment (capital) and other
intangibles
53,453
52,178
Investments
13,512
4,875
Lease & decommissioning
3,327
2,367
Other
8,476
6,738
191,351
126,270
Potential tax benefit
47,444
31,401
KEY ESTIMATES & JUDGEMENTS - UTILISATION OF TAX LOSSES
In most cases the unused tax losses have no expiry date. Therefore, while there is uncertainty in the market, assumptions
have been made to support carrying the tax losses. Where the tax losses could not be supported by future operating profits
in the near term or losses were incurred in jurisdictions with restrictions on their use, FLT have not recognised the tax losses.
Unrecognised unused tax losses in 2024 were incurred by the group across numerous jurisdictions. These losses have various
expiry dates from 2025 through to indefinite carry forward.
(B)
DEFERRED TAX ASSETS (DTA)
The balance comprises temporary differences attributable to:
2024
2023
RESTATED1
$'000
$'000
Intangible assets
4,974
4,789
Lease Liability
62,683
63,078
Tax losses
324,723
347,629
Provisions - non current
6,443
6,847
Trade and other payables
12,199
9,866
Property, plant and equipment
18,738
19,758
Provisions
14,879
14,903
Trade receivables
7,473
6,434
Employee benefits
18,378
29,439
Other
16,088
18,766
486,578
521,509
Set-off of deferred tax liabilities pursuant to set-off provisions
(122,660)
(117,761)
Net deferred tax assets
363,918
403,748
All movements in DTA were recognised in the statement of profit or loss, with the exception of items stated in note F11, and
F12 (a)(ii).
(C)
DEFERRED TAX LIABILITIES (DTL)
The balance comprises temporary differences attributable to:
2024
2023
RESTATED1
$'000
$'000
Borrowings
22,487
20,981
Contract asset
15,598
14,876
Intangible assets
27,943
30,490
Property, plant and equipment
3,464
4,169
Right of use asset
51,116
51,220
Other
7,850
6,004
128,458
127,740
Set-off of deferred tax liabilities pursuant to set-off provisions
(122,660)
(117,761)
Net deferred tax liabilities
5,798
9,979
All movements in DTL were recognised in the statement of profit or loss, with the exception of items stated in note F12 (a)(ii)
and (iii).
1 Comparatives have been represented to conform with changes in presentation in the current financial year.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
100
F13
AUDITOR’S REMUNERATION
During the year, the following fees were paid or payable for services provided by the Lead Auditor of the consolidated
entity, its related practices and non-related audit firms:
2024
2023
$
$
FEES TO ERNST & YOUNG (AUSTRALIA)
Fees for auditing the statutory financial report of the parent covering the group and auditing the
statutory financial reports of any controlled entities
2,220,485
1,987,580
Fees for other assurance and agreed-upon-procedures services under other legislation or
contractual arrangements where there is discretion as to whether the service is provided by the
auditor or another firm
32,030
48,500
Fees for other services
- Tax compliance
501,992
243,036
- Others
54,064
9,000
2,808,571
2,288,116
FEES TO OTHER OVERSEAS MEMBER FIRMS OF ERNST & YOUNG (AUSTRALIA)
Fees for auditing the financial report of any controlled entities
2,254,579
1,835,330
Fees for other assurance and agreed-upon-procedures services under other legislation or
contractual arrangements where there is discretion as to whether the service is provided by the
auditor or another firm
863,695
212,797
Fees for other services
- Tax compliance
390,006
249,487
3,508,280
2,297,614
6,316,851
4,585,730
FEES TO NON LEAD AUDITOR AUDIT FIRMS FOR:
Fees for auditing the financial report of any controlled entities
365,553
268,496
Fees for other assurance and agreed-upon-procedures services under other legislation or
contractual arrangements where there is discretion as to whether the service is provided by the
auditor or another firm
24,968
106,595
Fees for other services
- Tax compliance
140,385
384,420
- Others
611,841
175,719
1,142,747
935,230
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
101
G
GROUP STRUCTURE
This section explains significant aspects of the FLT group structure and how changes have affected the group.
G1
Subsidiaries
G2
Deed of cross guarantee
G3
Parent entity financial information
G1
SUBSIDIARIES
MATERIAL SUBSIDIARIES
The group’s principal subsidiaries are set out below. They have share capital consisting solely of ordinary shares that the
group holds directly and the proportion of ownership interests held equals the group's voting rights. The country of
incorporation or registration is also their place of business.
Subsidiaries that sell travel or travel related services and contribute to more than 10% of the group's underlying net profit or
loss before tax or 10% of the group's net assets are considered material to the group.
NAME OF ENTITY
COUNTRY OF
INCORPORATION
CLASS OF
SHARES/
OWNERSHIP
EQUITY HOLDING
2024
2023
%
%
Australian OpCo Pty Ltd¹
Australia
Ordinary
100
100
Flight Centre (UK) Limited
United Kingdom
Ordinary
100
100
Flight Centre Travel Group (France) SAS
France
Ordinary
100
100
Flight Centre Travel Group (USA) Inc
USA
Ordinary
100
100
1 This controlled entity has been granted relief from the requirement to prepare financial reports in accordance with ASIC Corporations (Wholly-owned Companies)
Instrument 2016/785 issued by the Australian Securities and Investments Commission. For further information refer to note G2.
There are no significant restrictions on the entities' ability to access or use the assets and settle the liabilities of the group.
NON-CONTROLLING INTERESTS
FCM TRAVEL STANDARDS FOR JAPAN CO., LTD (FCM JAPAN)
FCM Japan is controlled by FLT with a 66% (2023: 66%) interest. The remaining 34% (2023: 34%) interest is held by NSF
Engagement Corporation (a joint venture of Sony Corporation and NTT Facilities, Inc.) and is recognised as a non-
controlling interest.
LINK TRAVEL GROUP PTY LTD (LINK TRAVEL GROUP)
Link Travel Group Pty Ltd (Link Travel Group) is controlled by FLT with a 60% (2023: 60%) interest. The remaining 40% (2023:
40%) is held by Goldman Travel Corporation Pty. Limited and Spencer Group of Companies Pty Ltd and is recognised as a
non-controlling interest.
The above non-controlling interests are not material to the group.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
102
G2
DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (Instrument) certain wholly-owned
subsidiaries (as defined in the Instrument and listed below) are relieved from the Corporations Act 2001 requirements for
preparation, audit and lodgement of financial reports and directors' reports.
To obtain the relief, the Instrument requires FLT and each of its relevant wholly owned subsidiaries to enter into a Deed of
Cross Guarantee in a prescribed form. The effect of the Current Deed (described below) is that FLT guarantees each
creditor payment in full of any debt if any of the relevant wholly owned subsidiaries (that are party to the Current Deed
described below) are wound up under certain provisions of the Corporations Act 2001. If a winding up occurs under other
provisions of the Corporations Act 2001, FLT will only be liable in the event that after six months any creditor has not been
paid in full. The relevant wholly owned subsidiaries (that are a party to the Current Deed described below) have also given
similar guarantees in the event that FLT is wound up.
There is one Deed of Cross Guarantee currently in effect dated 8 June 2021 (Current Deed). The parties to the Current Deed
as at 30 June 2024 are Flight Centre Travel Group Limited (as holding entity and trustee), Australian OpCo Pty Ltd, P4
Finance Pty Ltd, Travel Services Corporation Pty Ltd, Flight Centre Technology Pty Ltd, Ignite Travel Group Pty Ltd, Ignite
Holidays Pty Ltd, Ignite Travel Pty Ltd, Travel Money Currency Exchange Pty Ltd, Travel Money Holdings Pty Ltd, Travel
Partner Holdings Pty Ltd, Top Deck Tours Pty Ltd and Flight Centre (China) Pty Ltd (as a group entity and alternative trustee).
Travel Money Holdings Pty Ltd and Top Deck Tours Pty Ltd acceded to the Current Deed via a Deed of Assumption dated
23 May 2024 and 24 June 2024 respectively.
These parties collectively represent the Closed Group for the purposes of the Instrument and, as there are no other parties
to the Current Deed (that are controlled by FLT or otherwise), they also represent the Extended Closed Group.
Set out below is the consolidated statement of profit or loss and statement of other comprehensive income, consolidated
balance sheet and a summary of movements in consolidated retained earnings for FLT and the wholly owned subsidiaries
listed above:
FOR THE YEAR ENDED 30 JUNE
2024
2023
STATEMENT OF PROFIT OR LOSS
$'000
$'000
RESTATED¹
Revenue
1,316,660
1,071,786
Buy-back and remeasurement of convertible notes
48,022
—
Other income
183,275
103,792
Share of loss of joint ventures and associates
(2,435)
(4,084)
EXPENSES
Employee benefits
(624,354)
(583,854)
Sales and marketing
(112,056)
(88,328)
Tour, hotel & cruise operations - cost of sales
(67,188)
(27,863)
Amortisation and depreciation
(75,490)
(74,312)
Finance costs
(138,263)
(108,318)
Other expenses
(365,555)
(323,439)
Profit / (loss) before income tax expense
162,616
(34,620)
Income tax expense
(45,683)
(16,037)
Profit / (loss) after income tax expense
116,933
(50,657)
STATEMENT OF COMPREHENSIVE INCOME
Items that have been reclassified to profit or loss:
Hedging gain reclassified to profit or loss
3,271
(186)
Items that may be reclassified to profit or loss:
Changes in the fair value of cash flow hedges
(5,507)
966
Income tax credit / (expense) on items of other comprehensive income
671
(234)
Total other comprehensive income
(1,565)
546
Total comprehensive loss for the year
115,368
(50,111)
1 Restated to include new parties to the Deed.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
103
G2
DEED OF CROSS GUARANTEE (CONTINUED)
AS AT 30 JUNE
2024
2023
ASSETS
$'000
$'000
RESTATED¹
Current assets
Cash and cash equivalents
626,198
890,663
Financial asset investments
10,007
20,227
Trade receivables
451,254
552,891
Contract assets
250,898
258,181
Other assets
71,510
55,941
Other financial assets
5,686
6,045
Current tax receivables
4,213
2,785
Derivative financial instruments
4,665
9,260
Total current assets
1,424,431
1,795,993
Non-current assets
Financial asset investments
7,729
14,656
Property, plant and equipment
24,624
27,649
Intangible assets
163,661
134,082
Right of use asset
121,548
100,118
Other assets
19,792
15,088
Other financial assets
1,316,072
841,745
Investments in subsidiaries, joint ventures and associates
1,137,906
1,109,623
Deferred tax assets
255,989
291,451
Derivative financial instruments
—
—
Total non-current assets
3,047,321
2,534,412
Total assets
4,471,752
4,330,405
LIABILITIES
Current liabilities
Trade and other payables
1,102,335
1,143,702
Contract liabilities
63,270
49,687
Financial liabilities
3,683
3,683
Lease liability
46,220
48,162
Borrowings
610
610
Convertible note
280,825
—
Provisions
42,930
43,300
Derivative financial instruments
5,446
10,006
Total current liabilities
1,545,319
1,299,150
Non-current liabilities
Trade and other payables
1,175,136
748,543
Contract liabilities
26,690
19,828
Lease liability
94,588
78,616
Borrowings
99,597
349,112
Convertible note
338,999
688,940
Provisions
18,460
19,569
Deferred tax liabilities
317
—
Derivative financial instruments
26,310
35,359
Total non-current liabilities
1,780,097
1,939,967
Total liabilities
3,325,416
3,239,117
Net assets
1,146,336
1,091,288
EQUITY
Contributed equity
1,442,825
1,379,529
Treasury shares
(27,800)
(14,748)
Reserves
112,916
163,454
Retained profits
(381,605)
(436,947)
Total equity
1,146,336
1,091,288
1 Restated to include new parties to the Deed.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
104
G2
DEED OF CROSS GUARANTEE (CONTINUED)
2024
2023
$'000
$'000
SUMMARY OF MOVEMENTS IN CONSOLIDATED RETAINED PROFITS
Retained profits at the beginning of the financial year
(430,205)
(376,080)
Loss from ordinary activities after income tax
116,933
(54,125)
Retained (loss) / profit at the end of the financial year
(313,272)
(430,205)
1 Restated to include new parties to the Deed.
G3
PARENT ENTITY FINANCIAL INFORMATION
SUMMARY FINANCIAL INFORMATION
The financial information for the parent entity, FLT, has been prepared on the same basis as the consolidated financial
statements, except for the investments which are carried at cost.
The individual financial statements for the parent entity show the following aggregate amounts:
PARENT
2024
2023
$'000
$'000
Current assets
1,785,041
2,089,572
Total assets
4,789,076
4,594,734
Current liabilities
1,087,422
909,276
Total liabilities
3,766,732
3,651,097
Contributed equity
1,442,225
1,378,929
Treasury shares
(27,800)
(14,748)
Reserves
Cash-flow hedge reserve
455
598
Compound instrument - equity component
74,986
91,335
Share-based payments reserve
49,080
83,600
Share premium reserve
(2,810)
(2,810)
Acquisition reserve
(8,976)
(8,976)
Financial assets at FVOCI
(282)
—
Foreign exchange reserve
(3,275)
(4,038)
Profit reserves
307,999
229,005
Retained losses
(809,258)
(809,258)
Total shareholders’ equity
1,022,344
943,637
Profit / (Loss) after tax for the year
140,584
(55,009)
Total comprehensive Income
139,986
(54,463)
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
105
G3
PARENT ENTITY FINANCIAL INFORMATION (CONTINUED)
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
PARENT
2024
2023
$'000
$'000
United Kingdom
156,448
112,641
India
27,280
27,823
China
9,078
9,148
Ireland
7,613
7,604
Hong Kong
5,280
5,292
Canada
8,319
3,562
France
12,901
—
New Zealand
3,912
3,676
USA
4,152
4,223
Japan
1,331
1,485
Australia
6,747
9,046
Singapore
2,270
2,302
Other
199
279
Total
245,530
187,081
FLT, as parent entity, has provided both parent company guarantees and issued letters of credit to beneficiaries. The parent
entity is liable to pay any claim, subject to the terms of the parent company guarantee or letter of credit, in the event that
obligations are not met.
FLT has also entered into a deed of cross guarantee. Refer to note G2 for terms and parties to the deed.
No liability was recognised by the parent entity or consolidated entity, as the guarantee’s fair values are immaterial.
CONTINGENT LIABILITIES OF THE PARENT ENTITY
Contingent liabilities of the parent entity at 30 June 2024 have been disclosed in note H2.
CONTRACTUAL COMMITMENTS
Except as noted in note E1, there are no other material contractual commitments of the parent entity.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
106
H
UNRECOGNISED ITEMS
This section provides information about items that are not recognised in the financial statements but could potentially
have a significant impact on the group’s financial position and performance.
H1
Commitments
H2
Contingencies
H3
Events occurring after the end of the reporting period
H1
COMMITMENTS
TP CONNECTS
FLT has entered into a call option and a put option with TP Connects. The call option can be exercised after 1 July 2027 and
the put option can only be exercised by TP Connects if the call option is not exercised by FLT. Refer to note A7 for
further details.
AIRTREE
FLT has an agreement with AirTree Ventures 2 Partnership LP to invest $5,000,000 into the venture capital fund. To date FLT
has received capital calls to the value of $4,748,868 which have been recognised as Equity instruments – Fair value through
profit or loss (refer note B2), leaving $251,132 to be called in the future. The amount to be called has not been recognised as
a liability at period end as FLT does not have a present obligation. The obligation only arises upon receipt of the capital
call notices.
FLT has no control or managerial involvement in the running of the venture capital fund and the total contribution of
$5,000,000 is less than 4% of the total capital in the fund.
CONTRACTUAL COMMITMENTS
Neither the parent entity, nor the group, have any material contractual obligations to purchase plant and equipment or
intangible assets at balance date (2023: $nil).
H2
CONTINGENCIES
GENERAL CONTINGENCIES
FLT is a global business and from time to time in the ordinary course of business it receives enquiries from various regulators
and government bodies. FLT cooperates fully with all enquiries and these enquiries do not require disclosure in their initial
state, however should the company become aware that an enquiry is developing further or if any regulatory or government
action is taken against the group, appropriate disclosure is made in accordance with the relevant accounting standards.
As a global business, from time to time FLT is also subject to various claims and litigation from third parties during the
ordinary course of its business. The directors of FLT have given consideration to such matters which are or may be subject to
claims or litigation at year end and, unless specific provisions have been made, are of the opinion that no material
contingent liability for such claims of litigation exists.
The group had no other material contingent assets or liabilities.
H3
EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD
DIVIDENDS
On 28 August 2024, FLT’s directors declared a final dividend for the year ended 30 June 2024. Refer to note B7 for details.
No other material matters have arisen since 30 June 2024.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
107
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES
This section details FLT's accounting policies. Material accounting policy information are contained with the financial
statement notes to which they relate and are not detailed in this section.
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES
FLT’s remaining principal accounting policies adopted in the consolidated financial report’s preparation are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report is for
the consolidated entity consisting of FLT and its subsidiaries.
(A) BASIS OF PREPARATION
This general purpose financial report has been prepared on a going concern basis and in accordance with Australian
Accounting Standards and interpretations issued by the Australian Accounting Standard Board and the Corporations Act
2001. FLT is a for-profit entity for the purpose of preparing the financial statements.
COMPLIANCE WITH IFRS
The group’s consolidated financial statements also comply with International Financial Reporting Standards (IFRS), as issued
by the International Accounting Standards Board (IASB).
EARLY ADOPTIONS OF STANDARDS
The group has not elected to apply any pronouncements before their operative date in the annual reporting period
beginning 1 July 2023.
HISTORICAL COST CONVENTION
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
FVOCI financial assets, revaluation of FVTPL financial assets, derivative financial instruments and contingent consideration.
ROUNDING OF AMOUNTS
Amounts in the financial statements have been rounded off to the nearest thousand dollars or, in certain cases, the nearest
dollar, in accordance with the Australian Securities and Investments Commission’s Instrument 2016/191.
(B) CHANGES IN ACCOUNTING POLICY
In July 2024 the IFRS IC published an agenda decision which discusses how an entity applies the requirements in paragraph
23 of IFRS 8 Operating Segments. The group is currently analysing potential impacts of this agenda decision to its segment
reporting.
The AASB has endorsed the adoption of AASB 112 Income Taxes amendments relating to the global minimum top-up tax
(Pillar Two Global anti-Base Erosion Rules) previously released by the IASB and has issued AASB 2023-2 Amendments to
AASB 112 - International Tax Reform Pillar Two Model Rules.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The legislation
will be effective for the Group’s financial year beginning 1 July 2024. The Group is in scope of the enacted or substantively
enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes. The
assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country
reporting and financial statements for the constituent entities in the Group. Based on the assessment, we expect the
majority of jurisdictions will be able to apply the transitional safe harbour relief and therefore no Pillar Two top up taxes. For
a limited number of jurisdictions where the transitional safe harbour relief may not apply, the Group does not expect a
material exposure to Pillar Two income taxes in those jurisdictions.
(C) PRINCIPLES OF CONSOLIDATION
(I) SUBSIDIARIES
The consolidated financial statements incorporate the assets and liabilities of all FLT subsidiaries at 30 June 2024 and the
subsidiaries’ results for the year then ended. FLT and its subsidiaries together are referred to in this financial report as the
group or the consolidated entity.
Subsidiaries are all entities (including structured entities) over which the group has control. FLT controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the entity's activities. Subsidiaries are fully consolidated from the date on which control is
transferred to the group. They are deconsolidated from the date control ceases.
The acquisition method of accounting is used to account for business combinations by the group (refer to note I (h) Business
Combinations).
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
108
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(C) PRINCIPLES OF CONSOLIDATION (CONTINUED)
(I) SUBSIDIARIES (CONTINUED)
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the transferred asset’s impairment.
Subsidiaries’ accounting policies have been changed, where necessary, to ensure consistency with the group’s policies.
Investments in subsidiaries are accounted for at cost in FLT’s individual financial statements.
(II) JOINT ARRANGEMENTS & ASSOCIATES
Investments in joint arrangements are classified as either joint operations or joint ventures (JVs). The classification depends
on each investor's contractual rights and obligations, rather than the legal structure of the joint arrangement. FLT only has
JVs, which are accounted for in the consolidated financial statements using the equity method. Under the equity method,
they are initially recognised at cost by the parent entity and subsequently the share of the JV entity’s profit or loss is
recognised in the statement of profit or loss. The share of post-acquisition movements in reserves is recognised in the
statement of other comprehensive income. JV details are set out in note E1.
FLT reassesses its interests in joint arrangements and associates for changes in control at least annually or where there has
been changes in circumstances including but not limited to changes to shareholdings and shareholder agreements.
Upon gaining control, FLT re-measures its existing investment to fair value with any difference between the carrying amount
and its fair value recognised in the profit or loss. The transaction is then accounted for in accordance with the acquisition
method of accounting, refer note I (h) Business Combinations.
Upon loss of joint control, FLT measures and recognises its remaining investment at its fair value. The difference between
the investment’s carrying amount upon loss of joint control and the remaining investment’s fair value and proceeds from
disposal is recognised in profit or loss.
When the remaining investment constitutes significant influence, it is accounted for as an investment in associate. Significant
influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint
control over those policies. Investments in Associates are also accounted for using the equity method.
(III) CHANGES IN OWNERSHIP INTERESTS
The Group recognises any non-controlling interest, in the acquired entity on an acquisition-by-acquisition basis either at fair
value or at the non-controlling interests’ proportionate share of the acquired entity’s net identifiable assets. Non-controlling
interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit or Loss,
Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position and Consolidated
Statement of Changes in Equity.
The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with group
equity owners. An ownership change will result in an adjustment between the carrying amounts of the controlling and non-
controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment
to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity
attributable to FLT owners.
When the group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate, jointly controlled
entity or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that
entity are accounted for as if the group has directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a JV or an associate is reduced but joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss
where appropriate.
(IV) SHARE TRUSTS
FLT has set up a share trust to administer the various employee share schemes it initiates to incentivise and reward
employees. The trust holds shares which have been purchased by employees or are fully vested, and from time-to-time
treasury shares. The trust is consolidated.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
109
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(D) FOREIGN CURRENCY TRANSLATION
(I) FUNCTIONAL AND PRESENTATION CURRENCY
Items included in each of the group entities’ financial statements are measured using the currency of the primary economic
environment in which the entity operates (the functional currency). The consolidated financial statements are presented in
Australian dollars, which is FLT’s functional and presentation currency.
(II) TRANSACTIONS AND BALANCES
Foreign currency transactions are translated into the functional currency at the prevailing exchange rates at the transaction
dates. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Exceptions arise if the gains and losses are deferred in equity as qualifying cash flow hedges and qualifying net investment
hedges or are attributable to part of the net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss within finance
costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other
income or other expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated at the exchange rates when the fair
value is determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value
gain or loss.
(III) GROUP COMPANIES
For foreign operations with different functional currencies to the presentation currency, results and financial position are
translated into the presentation currency as follows:
• Assets and liabilities for each balance sheet presented are translated at the closing rate of that balance sheet’s date
• Income and expenses for each statement of profit or loss and statement of other comprehensive income are translated
at average exchange rates; and
• All resulting exchange differences are recognised in other comprehensive income
On consolidation, exchange differences arising from the translation of any net investment in foreign entities and of
borrowings and other financial instruments designated as hedges of such investments are recognised in other
comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a
proportionate share of such exchange difference is reclassified to profit or loss, as part of the gain or loss on sale where
applicable.
Goodwill and fair value adjustments arising on foreign operations' acquisitions are treated as the foreign operations’ assets
and liabilities and are translated at the closing rate.
(E) REVENUE
For accounting policies on revenue, refer to note A2.
(F) OTHER INCOME
Specific accounting policies for other income are set out below:
(I) LEASE INCOME
Lease income from operating leases is recognised as income on a straight-line basis over the lease term.
(II) INTEREST INCOME
Interest income is recognised on a time proportion basis using the effective interest method. When a receivable is impaired,
the group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the
instrument’s original effective interest rate, and continues unwinding the discount as interest income. Interest income on
impaired loans is recognised using the original effective interest rate.
(III) DIVIDENDS
Dividends are recognised when the right to receive payment is established. This applies even if they are paid out of pre-
acquisition profits. However, the investment may need to be tested for impairment as a consequence.
(IV) ROYALTIES
Royalty revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
110
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(F) OTHER INCOME (CONTINUED)
(V) INTERCOMPANY SERVICE FEES
Remuneration for services provided between FLT group entities. The revenue is recognised on an accrual basis in
accordance with the substance of the relevant agreement. These fees are eliminated on consolidation.
(G) IMPAIRMENT OF ASSETS
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation but are impairment tested
annually or more frequently if events or changes in circumstances indicate they might be impaired. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset's fair value less costs of disposal, or value-in-use. To assess impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are independent of the cash inflows from other
assets or asset groups (cash-generating units).
Impaired non-financial assets, other than goodwill, are reviewed for indicators for possible reversal of impairment at each
reporting date.
(H) BUSINESS COMBINATIONS
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for a subsidiary’s acquisition comprises the
transferred assets’ fair values, the liabilities incurred and the equity interest issued by the group. The consideration
transferred also includes any contingent consideration arrangement’s fair value and the fair value of any pre-existing equity
interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at
acquisition date. Where equity instruments are issued in an acquisition, the instruments’ fair values are their published
market prices at the exchange date. Transaction costs arising on equity instruments’ issue are recognised directly in equity.
The excess of the consideration transferred over the fair value of the net identifiable assets acquired is recorded as goodwill.
If those amounts are less than the fair value of the acquired subsidiary’s net identifiable assets and the measurement of all
amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, future amounts payable are discounted to their present
value at the exchange date. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a
similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Where there are NCIs, these are measured at either the acquisition date fair value or the proportionate share of the net
identifiable assets acquired.
For some acquisitions, Put and Call options over NCIs are entered into simultaneously when business combinations are
initially recorded. For these acquisitions, it has been determined that the option does not provide the parent with a present
ownership interest in the shares subject to the Put. The NCI is treated as having been acquired when the Put option is
granted (i.e. it is de-recognised) and a financial liability at the present value of the redemption amount under the
arrangement is recorded for the NCI Put. The difference between the liability recorded and the NCI de-recognised is
recorded in the acquisition reserve in equity in accordance with AASB 10. After the initial recognition of the acquisition
reserve it is not subsequently re-measured. The financial liability relating to the put options over NCI is subsequently
accounted for under AASB 9 with all changes in the carrying amount recognised in profit or loss until exercise.
(I) INTANGIBLE ASSETS
(I) GOODWILL
Goodwill represents the excess of the acquisition’s cost over the fair value of the group’s interest in the fair value of the
acquired subsidiary or associate’s net identifiable assets at the acquisition date.
Goodwill on subsidiaries’ acquisitions is included in intangible assets. Goodwill is not amortised but is impairment tested
annually or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost
less accumulated impairment losses. Gains and losses on the entity’s disposal include the sold entity’s carrying amount of
goodwill.
Goodwill is allocated to CGUs for impairment testing. The allocation is made to those CGUs or groups of CGUs that are
expected to benefit from the business combination in which the goodwill arose.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
111
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(I) INTANGIBLE ASSETS (CONTINUED)
(II) BRAND NAMES, LICENCES, AND CUSTOMER RELATIONSHIPS
Other intangible assets, such as brand names, licences and customer relationships, are acquired as part of business
combinations and are recognised initially at fair value. Where they have an indefinite useful life, such as brand names, they
are not subject to amortisation but are tested annually for impairment or more frequently if events or changes in
circumstances indicate they may be impaired. Key factors taken into account in assessing the useful life of brands are:
• The brands are well established and protected by trademarks across the globe. The trademarks are generally subject
to an indefinite number of renewals upon appropriate application; and
• There are currently no legal, technical or commercial obsolescence factors applying to the brands which indicate that
the life should be considered limited
(III) OTHER INTANGIBLE ASSETS - SOFTWARE
Research costs associated with software development are expensed as incurred. Development expenditure incurred on an
individual project is capitalised if the project is technically and commercially feasible and adequate resources are available
to complete development. The expenditure capitalised includes all directly attributable costs, including costs of materials,
services, direct labour and an appropriate proportion of overheads.
(J) CASH AND CASH EQUIVALENTS
For statement of cash flows presentation purposes, cash and cash equivalents include cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid investments that are readily convertible to known amounts of cash
and are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities on the balance sheet. Amounts outstanding from EFT, credit card and debit card point of sale
transactions are classified as cash and cash equivalents.
(K) FINANCIAL ASSETS
(I) CLASSIFICATION
Financial assets are classified in the following categories: financial assets at amortised cost, FVTPL and FVOCI. The
classification depends on the purpose for which the assets were acquired.
• Amortised cost - Applies to instruments which are held within a business model whose objective is to hold assets in
order to collect contractual cash flows and the contractual terms of the financial asset represent contractual cash flows
that are solely payments of principal and interest
• Fair value through profit and loss (FVTPL) - Applies to instruments which are within a business model where the
objective is neither to hold to collect contractual cash flows nor hold to sell
• Fair value through other comprehensive income (FVOCI) - Applies to instruments which satisfy the requirements of the
business model test and contractual cashflow test.
Management classifies its investments at initial recognition and re-evaluates this classification each reporting date, except
for FVOCI where the classification is irrevocable.
(II) RECOGNITION AND DERECOGNITION
Regular purchases and sales of financial assets are recognised on trade-date (the date on which the group commits to
purchase or sell the asset). Investments are initially recognised at fair value plus transaction costs for all financial assets not
carried at FVTPL. Financial assets carried at FVTPL are initially recognised at fair value and transaction costs are expensed in
the statement of profit or loss. Financial assets are derecognised when the rights to receive cash flows from them have
expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.
(III) SUBSEQUENT MEASUREMENT
Financial assets at amortised cost are carried at amortised cost using the effective interest method.
Financial assets at FVTPL are subsequently carried at fair value. Gains or losses arising from changes in the fair value are
presented in the statement of profit or loss within other income or other expenses in the period in which they arise. Income
such as interest and dividends from financial assets at FVTPL is recognised separately to gains or losses in the statement of
profit or loss as part of other income when the group’s right to receive payments is established.
Financial assets classified as FVOCI are subsequently carried at fair value. Gains or losses arising from changes in the fair
value are presented in other comprehensive income with the exception of impairment which is recognised in the statement
of profit or loss immediately. When debt securities classified as FVOCI are sold, the accumulated fair value adjustments
recognised in other comprehensive income are reclassified in the statement of profit or loss as gains and losses from
investment securities.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
112
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(K) FINANCIAL ASSETS (CONTINUED)
(IV) IMPAIRMENT - EXPECTED CREDIT LOSSES
FLT applies the simplified approach to the measurement of expected credit losses (ECLs).
FLT assesses the credit risk and probability of default of financial assets by reference to external rating agencies where
available on an asset by asset basis. FLT has determined a financial asset has low credit risk when it is equivalent to an
investment grade quality.
For trade receivables, contract assets and lease receivables which do not contain a significant financing component, AASB 9
offers a policy choice between the application of the general model or a simplified approach. Under the simplified
approach, the tracking of changes in credit risk is not required, but instead requires the recognition of lifetime ECLs at all
times and allows the use of a provision matrix, incorporating the probability of default, as a practical expedient. FLT has
elected the simplified approach for trade receivables and contract assets.
(L) FAIR VALUE MEASUREMENT
FLT measures certain financial instruments at fair value at each reporting date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability; or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the group.
An asset or liability's fair value is measured using the assumptions that market participants use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
The group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, as described in notes A7, B2 and C2.
(M) TRADE RECEIVABLES
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment in accordance with the simplified approach see note I (k) iv above.
The impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future
cash flows, discounted at the effective interest rate. Cash flows relating to short-term receivables are not discounted if the
effect of discounting is immaterial. The impairment amount is recognised in the statement of profit or loss in other
expenses. When a trade receivable for which an impairment allowance has been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off
are credited against other expenses in the statement of profit or loss.
(N) PROPERTY, PLANT AND EQUIPMENT
Buildings and other property, plant and equipment are stated at historical cost less depreciation. Land is held at historical
cost. Historical cost includes expenditure directly attributable to the item’s acquisition.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, when it is
probable that future economic benefits associated with the item will flow to the group and the item’s cost can be measured
reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they
are incurred.
An asset’s carrying amount is impaired immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount (note I (g)). A previously recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised.
The reversal is limited so that the asset’s carrying amount does not exceed its recoverable amount, nor exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in
prior years.
(O) INVENTORIES
Inventories are valued at the lower of cost and net realisable value. Cost primarily represents average costs.
Where inventories relate to cruise cabins that are pre-purchased as part of our principal business, with sail dates greater
than 12 months, they are classified as non-current.
(P) TRADE AND OTHER PAYABLES
These amounts are liabilities for goods and services provided to the group prior to the financial year's end, but not yet paid.
The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months of the reporting date. They are recognised initially at fair value
and subsequently measured at amortised cost using the effective interest method.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
113
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(Q) PROVISIONS
Provisions are recognised when the group has a present legal or constructive obligation as a result of past events and it is
more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably
estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow relating to
any item included in the same class of obligations is small.
To measure provisions at present value at the reporting period’s end, management estimates the expenditure required to
settle the present obligation. The discount rate used to determine the present value reflects current market assessments of
the time value of money and the risks specific to the liability. Provision increases brought about by the passage of time are
recognised as interest expenses.
(I) MAKE GOOD PROVISION
The group is required to restore leased premises to their original condition at the end of the respective lease terms.
A provision has been recognised for the present value of the estimated expenditure required to remove any leasehold
improvements and restore the leased premises. These costs have been capitalised as part of the cost of leasehold
improvements and are amortised over the shorter of the lease term or the asset’s useful life.
(R) EMPLOYEE BENEFITS
(I) WAGES AND SALARIES, ANNUAL LEAVE AND SICK LEAVE
Liabilities for employees’ wages and salaries, including non-monetary benefits and annual leave are classified as current and
recognised in trade and other payables up to the reporting period’s end and represent the amounts expected to be paid
when the liabilities are settled. Sick leave is recognised as an expense when the leave is taken and measured at the rates
paid or payable. All other short-term employee benefit obligations are presented as trade and other payables.
(II) INCENTIVES AND BONUS PLANS
A liability for employee benefits in the form of incentives and bonus plans is recognised as payable when there is a
contractual obligation or valid expectation that payment will be made.
(III) LONG SERVICE LEAVE
The liability for long service leave which is expected to be settled within 12 months and the portion that is not expected to
be settled within 12 months after the end of the period in which the employees render the related service is recognised in
provisions. The liability represents the present value of expected future payments to be made for the services employees
provided up to the reporting period’s end. The company considers expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments at the reporting period’s end are discounted using
market yields on national corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
(IV) RETIREMENT BENEFIT OBLIGATIONS
The group provides retirement benefits to employees through a defined contribution superannuation fund. Contributions
are recognised as expenses as they become payable.
(V) TERMINATION BENEFITS
Termination benefits may be payable when employment is terminated before the normal retirement date or when an
employee accepts voluntary redundancy in exchange for these benefits. The group recognises termination benefits when it
commits to either terminating a current employee’s employment according to a detailed formal plan without the possibility
of withdrawal or providing termination benefits following an offer made to encourage voluntary redundancy.
(S) BORROWINGS
Borrowings are initially recognised at fair value, net of transaction costs incurred, and are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
profit or loss over the period of the borrowings using the effective interest method. Fees paid on loan facilities’
establishment are recognised as loan transaction costs to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. If there is no evidence that it is probable that some
or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Borrowing costs are recognised as expenses in the period in which they are incurred and include:
• Interest on bank overdrafts and short and long-term borrowings; and
• Unwinding of discount on deferred payables
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
114
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(S) BORROWINGS (CONTINUED)
Borrowings are classified as current liabilities unless the group has an unconditional right to defer the liability’s settlement
for at least 12 months after the reporting period’s end.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
other income or other expenses.
(T) TAX
(I) INCOME TAX
The income tax expense or benefit for the period is the tax payable or receivable on the current period’s taxable income
based on each jurisdiction’s applicable income tax rate. Adjustments are made for changes in deferred tax assets and
liabilities attributable to temporary differences and for unused tax losses.
The current income tax charge is based on tax laws enacted or substantively enacted at the end of the reporting period in
the countries where the company’s subsidiaries and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns in respect of situations in which applicable tax regulations are subject to
interpretation and establishes provisions where appropriate.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the assets’ and
liabilities’ tax bases and their carrying amounts in the consolidated financial statements. However, the deferred income tax is
not accounted for if it arises from an asset or liability’s initial recognition in a transaction other than a business combination
that at the time of the transaction does not affect accounting or taxable profit or loss except for transactions that, on initial
recognition, give rise to equal taxable and deductible temporary differences such as recognition of a right of use asset and
lease liability. Deferred income tax is determined using rates (and laws) that have been enacted or substantively enacted by
the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only to the extent that it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in controlled entities where the parent entity controls the timing of the temporary differences’ reversals and it
is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same tax authority. Current tax assets and tax liabilities are offset when the
entity has a legally enforceable right to offset and intends to either settle on a net basis or to realise the asset and settle the
liability simultaneously.
Current and deferred tax is recognised in profit or loss, except when it relates to items recognised in other comprehensive
income or directly in equity. In these cases, the tax is also recognised in other comprehensive income or directly in equity.
Companies within the group may be entitled to claim tax incentives (eg. the Research and Development Tax Incentive
regime in Australia). The effect of this is a reduction to the income tax payable and current tax expense.
(II) TAX CONSOLIDATION LEGISLATION
FLT and its wholly-owned Australian controlled entities implemented the tax consolidation legislation as of 1 July 2003.
The head entity, FLT, and the tax consolidated group’s controlled entities continue to account for their current and deferred
tax amounts. These tax amounts are measured as if each entity continues to be a standalone taxpayer.
In addition to its current and deferred tax amounts, FLT also recognises the current tax liabilities (or assets) and the deferred
tax assets arising from unused tax losses and unused tax credits assumed from the tax consolidated group’s controlled
entities.
(III) NATURE OF THE TAX SHARING ARRANGEMENT
Members of the tax consolidated group have entered into a tax sharing agreement that provides for the allocation of
income tax liabilities between the entities should the head entity default on its tax payment obligations. No amounts have
been recognised in the financial statements in respect of this agreement on the basis that the possibility of default is
remote.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
115
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
(T) TAX (CONTINUED)
(IV) NATURE OF THE TAX FUNDING AGREEMENT
Members of the tax consolidated group have entered into a tax funding agreement. Under the tax funding agreement, the
wholly-owned entities fully compensate FLT for any current tax payable assumed and are compensated by FLT for any
current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to FLT
under the tax consolidation legislation.
The funding amounts are the amounts recognised in the wholly-owned entities' financial statements. Amounts receivable or
payable under the tax funding agreement are due when the head entity's funding advice is received. This advice is issued as
soon as practicable after each financial year's end. The head entity may also require payment of interim funding amounts to
pay tax instalments. The funding amounts are recognised as current intercompany receivables or payables. Any differences
between the amounts assumed and amounts receivable or payable under the tax funding agreements are recognised as a
contribution to (or distribution from) wholly-owned tax consolidated entities.
(U) EARNINGS PER SHARE
(I) BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to the company’s equity holders, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the year.
(II) DILUTED EARNINGS PER SHARE
Diluted earnings per share adjusts basic earnings per share to take into account the after income tax effect of interest and
other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed
to have been issued for no consideration in relation to dilutive potential ordinary shares.
(V) CONTRIBUTED EQUITY
Ordinary shares are classified as equity (note D4) and entitle the holder to participate in dividends and the proceeds of the
company’s wind up in proportion to the number of and amount paid on the shares held.
On a show of hands, every holder of an ordinary share present at a meeting, either in person or by proxy, is entitled to one
vote. Upon a poll, each share is entitled to one vote.
Ordinary shares have no par value and there are no partly paid shares currently on issue.
Incremental costs directly attributable to new share or option issues are shown in equity as a deduction, net of tax, from the
proceeds. Incremental costs directly attributable to shares or options issued for a business acquisition are not included in
the acquisition’s cost as part of the purchase consideration.
If the entity reacquires its own equity instruments, as the result of a share buy-back for example, those instruments are
deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the
consideration paid, including any directly attributable incremental costs (net of income taxes), is recognised directly in
equity.
(W) DIVIDENDS
Provision is made by the parent entity for any dividend declared, being appropriately authorised and no longer at the
entity’s discretion on or before the end of the financial year but not distributed at balance date.
(X) GST / CONSUMPTION TAX
Revenues, expenses, assets and liabilities are recognised net of the amount of associated consumption tax, unless the
consumption tax incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the asset
acquisition’s cost or as part of the expense.
Receivables and payables include consumption taxes receivable or payable. The net amount of consumption tax
recoverable from, or payable to, the taxation authority is included with other assets or payables in the balance sheet.
Cash flows are presented on a gross basis. The consumption tax components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the taxation authority are presented as operating cash flows.
(Y) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2024
reporting period. FLT is in the process of determining the impact of these new standards and amendments.
AASB 2023-2 AMENDMENTS TO AASB 112- INTERNATIONAL TAX REFORM PILLAR TWO MODEL RULES
The AASB has endorsed the adoption of AASB 112 Income Taxes amendments relating to the global minimum top-up tax
(Pillar Two Global anti-Base Erosion Rules) previously released by the IASB and has issued AASB 2023-2 Amendments to
AASB 112 - International Tax Reform Pillar Two Model Rules.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
116
I
SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
AASB 2023-2 AMENDMENTS TO AASB 112- INTERNATIONAL TAX REFORM PILLAR TWO MODEL RULES (CONTINUED)
For the period ended 30 June 2024, we have applied the IASB amendment to IAS1 12, Income Taxes, which provides
mandatory temporary exception from recognising or disclosing deferred taxes related to Pillar Two.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The legislation
will be effective for the Group’s financial year beginning 1 July 2024. The Group is in scope of the enacted or substantively
enacted legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes. The
assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country
reporting and financial statements for the constituent entities in the Group. Based on the assessment, we expect the
majority of jurisdictions will be able to apply the transitional safe harbour relief and therefore no Pillar Two top up taxes. For
a limited number of jurisdictions where the transitional safe harbour relief may not apply, the Group does not expect a
material exposure to Pillar Two income taxes in those jurisdictions.
We are continuing to follow Pillar Two legislative developments to evaluate the potential future impact on our consolidated
results of operations, financial position and cash flows beginning in 1 July 2024.
AASB 2020-1 AMENDMENTS TO AASs- CLASSIFICATION OF LIABILITIES AS CURRENT OR NON-CURRENT AND AASB
2022-6 AMENDMENTS TO AASs - NON-CURRENT LIABILITIES WITH COVENANTS
In January 2020, the AASB issued amendments to paragraphs 69 to 76 of AASB 101 to specify the requirements for
classifying liabilities as current or non-current. The amendments clarify:
• what is meant by a right to defer settlement
• that a right to defer settlement must exist at the end of the reporting period
• that classification is unaffected by the likelihood that an entity will exercise its deferral right
• that only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability
not impact its classification
The amendments were originally effective for annual reporting periods beginning on or after 1 January 2023, however the
AASB has now issued AASB 2022-6 Amendments to AASs - Non-Current Liabilities with Covenants which has changed the
effective date of AASB 2020-1 to annual reporting periods beginning on or after 1 January 2024 and must be applied
retrospectively. This means that it will be applied in the reporting period ending 30 June 2025. FLT does not intend to adopt
the standard before its operative date.
The amendments in AASB 2022-6 clarify:
• that only covenants with which an entity must comply on or before the reporting date will affect a liability’s
classification as current or non-current
• specific situations in which an entity does not have a right to defer settlement for at least 12 months after the reporting
date
The amendments in AASB 2022-6 also add presentation and disclosure requirements for non-current liabilities subject to
compliance with future covenants within the next 12 months.
The group does not expect the application of the standard to have a material financial impact on its consolidated financial
statements.
AASB 18 PRESENTATION AND DISCLOSURE IN FINANCIAL STATEMENTS
AASB 18 has been issued to improve how entities communicate in their financial statements, with particular focus on
information about financial performance in the statement of profit or loss. The key presentation and disclosure requirements
established by AASB 18 are:
• The presentation of newly defined subtotals in the statement of profit or loss
• The disclosure of management defined performance measures (MPM)
• Enhanced requirements for grouping information (ie aggregation and disaggregation)
AASB 18 is accompanied with limited consequential amendments to the requirements in other accounting standards,
including AASB 107 Statement of Cash Flows.
AASB 18 introduces three new categories for classification of all income and expenses in the statement of profit or loss:
operating, investing and financing. Additionally, entities will be required to present subtotals for ‘operating profit or loss’,
‘profit or loss before financing and income taxes’ and ‘profit or loss’.
For the purpose of classifying income and expenses into one of the three new categories, entities will need to assess their
main business activity, which will require judgement. There may be more than one main business activity.
AASB 18 PRESENTATION AND DISCLOSURE IN FINANCIAL STATEMENTS (CONTINUED)
AASB 18 also requires several disclosures in relation to MPMs, such as how the measure is calculated, how it provides useful
information and a reconciliation to the most comparable subtotal specified by AASB 18 or another standard.
AASB 18 will replace AASB 101 Presentation of Financial Statements.
The group is still to consider the impacts of the new disclosure requirements.
There are no other standards that have been issued but are not yet effective and that are expected to have a material
financial impact on the entity in the current or future reporting periods and on foreseeable future transactions.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
117
Set out below is relevant information relating to entities that are consolidated in the consolidated financial statements at the
end of the financial year as required by the Corporations Act 2001 (s.295(3A)(a)).
KEY ASSUMPTIONS AND JUDGEMENTS
Determination of Tax Residency
Subsection 295(3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the
‘Consolidated entity disclosure statement’ be disclosed. In the context of an entity which was an Australian resident,
“Australian resident” has the meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency
involves judgement as the determination of tax residency is highly fact dependent and there are currently several different
interpretations that could be adopted, and which could give rise to a different conclusion on residency.
In determining residency, the consolidated entity has applied the following interpretations:
- Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner
of Taxation’s public guidance in Taxation Ruling TR 2018/5.
- Foreign tax residency
The consolidated entity has applied current legislation and, where available, judicial precedent in the determination of
foreign tax residency.
Trusts
Australian tax law does not contain specific residency tests for trusts. Generally, trusts are taxed on a flow-through basis so
there is no need for a general residence test. There are some provisions which treat trusts as residents for certain purposes,
but this does not mean the trust itself is an entity that is subject to tax.
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE
CAPITAL HELD
BY FLT
COUNTRY OF TAX
RESIDENCE
Flight Centre Travel Group Limited
Body Corporate
Australia
—%
Australia
Australian Opco Pty Ltd
Body Corporate
Australia
100%
Australia
Avmin Pty Ltd
Body Corporate
Australia
51%
Australia
Buffalo Tours Australia Pty Ltd
Body Corporate
Australia
100%
Australia
CHEAPHOTELS.COM.AU PTY. LTD.
Body Corporate
Australia
100%
Australia
Corprewards Pty Ltd
Body Corporate
Australia
100%
Australia
Disruptive Opportunities No.1 Pty Ltd
Body Corporate
Australia
100%
Australia
Escape Lounge Pty Ltd
Body Corporate
Australia
100%
Australia
FCTG Franchising Pty Ltd
Body Corporate
Australia
100%
Australia
Flight Centre (China) Pty Ltd
Body Corporate
Australia
100%
Australia
Flight Centre Foundation Pty Ltd
Body Corporate
Australia
100%
Australia
Flight Centre Property Pty Ltd
Body Corporate -
Trustee of Trust
Australia
100%
Australia
Flight Centre Technology Pty Ltd
Body Corporate
Australia
100%
Australia
Flight Centre Travel Group (Payments)
Pty Ltd
Body Corporate
Australia
100%
Australia
Holiday Exclusives Pty Ltd
Body Corporate
Australia
100%
Australia
Ignite Holidays Pty Ltd
Body Corporate
Australia
100%
Australia
Ignite Travel Group Pty Ltd
Body Corporate
Australia
100%
Australia
Ignite Travel Pty Ltd
Body Corporate
Australia
100%
Australia
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
118
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE
CAPITAL HELD
BY FLT
COUNTRY OF TAX
RESIDENCE
Jati Travel Pty Ltd
Body Corporate
Australia
100%
Australia
Jetescape Travel Pty Ltd
Body Corporate
Australia
100%
Australia
Jetmax International Pty Ltd
Body Corporate
Australia
100%
Australia
Link Travel Group Pty Ltd
Body Corporate
Australia
60%
Australia
Loyaltycorp Pty Ltd
Body Corporate
Australia
100%
Australia
Moneywise Global Home Loans Pty. Ltd.
Body Corporate
Australia
100%
Australia
Moneywise Global Pty Ltd
Body Corporate
Australia
100%
Australia
Moneywise Global Tax Services Pty Ltd
Body Corporate
Australia
100%
Australia
My Adventure Store Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
P4 Finance Pty Ltd
Body Corporate
Australia
100%
Australia
Professional Performance Systems Pty.
Ltd.
Body Corporate
Australia
100%
Australia
Resortrewards Pty Ltd
Body Corporate
Australia
100%
Australia
Rewardscorp Pty Ltd
Body Corporate
Australia
100%
Australia
Satellite Travel Pty Ltd
Body Corporate
Australia
100%
Australia
Shanghai Journey Pty Ltd
Body Corporate
Australia
100%
Australia
The Holiday Centre Pty Ltd
Body Corporate
Australia
100%
Australia
Tibbar Global Pty Ltd
Body Corporate
Australia
100%
Australia
Top Deck Tours Pty Ltd
Body Corporate
Australia
100%
Australia
Travel Money Currency Exchange Pty Ltd
Body Corporate
Australia
100%
Australia
Travel Money Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
Travel Partners Holdings Pty Ltd
Body Corporate
Australia
100%
Australia
Travel Services Corporation Pty Ltd
Body Corporate
Australia
100%
Australia
My Adventure Store Pty Ltd
Body Corporate
Australia
100%
Australia
Buffalo Tours (Cambodia) Limited
Body Corporate
Cambodia
100%
Cambodia
BLC Ventures Ltd
Body Corporate
Canada
100%
Canada
BYOJet Incorporated
Body Corporate
Canada
100%
Canada
Flight Centre Travel Group (Canada) Inc
Body Corporate
Canada
100%
Canada
Les Voyages Laurier du Vallon Inc
Body Corporate
Canada
100%
Canada
StudentUniverse Inc
Body Corporate
Canada
100%
Canada
Umapped Inc
Body Corporate
Canada
100%
Canada
Flight Centre China International Tourism
Co. Ltd
Body Corporate
China
100%
China
Flight Centre Comfort Business Travel
Services Co. Ltd
Body Corporate
China
99%
China
Shenzhen FCM Travel Solutions
International Tourism Co. Ltd
Body Corporate
China
—%
China
Olympus Tours Costa Rica SA
Body Corporate
Costa Rica
100%
Costa Rica
FCM Travel Standards for Japan Co., Ltd. Body Corporate
Japan
66%
Japan
DR Tours SRL
Body Corporate
Dominican
Republic
100%
Dominican
Republic
Flight Centre Travel Group (France) SAS
Body Corporate
France
100%
France
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
119
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE
CAPITAL HELD
BY FLT
COUNTRY OF TAX
RESIDENCE
Flight Centre Travel Group (Germany)
GmbH
Body Corporate
Germany
100%
Germany
Scott Dunn Greece Hellas Single
Member Private Company
Body Corporate
Greece
100%
Greece
Buffalo Tours (Hong Kong) DMC Ltd
Body Corporate
Hong Kong
100%
Hong Kong
Flight Centre (Hong Kong) Limited
Body Corporate
Hong Kong
100%
Hong Kong
FCm Travel Solutions (India) Private
Limited
Body Corporate
India
100%
India
TP Connects Software Solutions Pvt Ltd
Body Corporate
India
70%
India
PT Bespoke Hospitality Management
Indonesia
Body Corporate
Indonesia
100%
Indonesia
PT. Buffalo Tours Indonesia
Body Corporate
Indonesia
100%
Indonesia
Flight Centre Travel Group (Ireland)
Limited
Body Corporate
Ireland
100%
Ireland
Kabushiki Kaisha Buffalo Tours Japan
Body Corporate
Japan
100%
Japan
Discova (Lao) Co. Ltd
Body Corporate
Lao People's
Democratic
Republic
70%
Lao People's
Democratic
Republic
Discova DMC (Malaysia) Sdn. Bhd.
Body Corporate
Malaysia
40%
Malaysia
FCTG Malaysia Holdings Sdn. Bhd.
Body Corporate
Malaysia
40%
Malaysia
Flight Centre Travel Group (Malaysia)
Sdn. Bhd.
Body Corporate
Malaysia
40%
Malaysia
Flight Centre (Mauritius) Limited
Body Corporate
Mauritius
100%
Mauritius
Flight Centre Travel Group Mexico, S.A.
de C.V.
Body Corporate
Mexico
100%
Mexico
In and Out S.A. de C.V.
Body Corporate
Mexico
—%
Mexico
Olympus Tours SA de CV
Body Corporate
Mexico
100%
Mexico
BT Travel Myanmar Limited
Body Corporate
Myanmar
35%
Myanmar
Flight Centre Travel Group (Netherlands)
B.V.
Body Corporate
Netherlands
100%
Netherlands
BYOJet Travel NZ Limited
Body Corporate
New Zealand
100%
Australia
Flight Centre (NZ) Foundation Limited
Body Corporate -
Trustee of Trust
New Zealand
100%
New Zealand
Flight Centre (NZ) Limited
Body Corporate
New Zealand
100%
New Zealand
Top Deck Tours Limited
Body Corporate
New Zealand
100%
New Zealand
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
120
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE
CAPITAL HELD
BY FLT
COUNTRY OF TAX
RESIDENCE
Top Deck Travel Limited
Body Corporate
New Zealand
100%
New Zealand
Travel Managers Group Limited
Body Corporate
New Zealand
100%
New Zealand
Travel Money (NZ) Limited
Body Corporate
New Zealand
100%
New Zealand
FCTG South East Asia (Philippines), Inc.
Body Corporate
Philippines
100%
Philippines
Flight Center Middle East Travel and
Tourism
Body Corporate
Saudi Arabia
100%
Saudi Arabia
Buffalo Tours (Singapore) Holding Pte.
Ltd.
Body Corporate
Singapore
100%
Singapore
Buffalo Tours (Singapore) Pte Ltd
Body Corporate
Singapore
100%
Singapore
FCm Singapore Pte. Ltd.
Body Corporate
Singapore
100%
Singapore
FCTG Hotel Holdings (Singapore) Pte.
Ltd.
Body Corporate
Singapore
100%
Singapore
FCTG Singapore Holdings Pte. Ltd.
Body Corporate
Singapore
100%
Singapore
Motivity Business Systems Pte. Limited
Body Corporate
Singapore
100%
Singapore
OSIN Holdings Pte Ltd
Body Corporate
Singapore
100%
Singapore
Scott Dunn Asia (Holdco) Pte. Ltd.
Body Corporate
Singapore
100%
Singapore
Scott Dunn Singapore Pte Limited
Body Corporate
Singapore
100%
Singapore
FCm Travel Solutions (Pty) Ltd
Body Corporate
South Africa
100%
South Africa
FCTG Corporate (Pty) Ltd
Body Corporate
South Africa
100%
South Africa
Flight Centre Foundation South Africa
NPC
Body Corporate -
Trustee of Trust
South Africa
100%
South Africa
Flight Centre Property (South Africa)
(Proprietary) Limited
Body Corporate
South Africa
100%
South Africa
Flight Centre Travel Group (Pty) Ltd
Body Corporate
South Africa
100%
South Africa
Pendoring Contracting Pty Ltd
Body Corporate
South Africa
100%
South Africa
Top Deck Tours (Pty) Ltd
Body Corporate
South Africa
100%
South Africa
Flight Centre Travel Group (Spain), S.L.
Body Corporate
Spain
100%
Spain
European Travel Service Center, S.L.
Body Corporate
Spain
100%
Spain
Flight Centre Travel Group (Europe) AB
Body Corporate
Sweden
100%
Sweden
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
121
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE CAPITAL
HELD BY FLT
COUNTRY OF TAX
RESIDENCE
Buffalo Tours (Thailand) Ltd.
Body Corporate
Thailand
49%
Thailand
Buffalo Transport (Thailand) Limited
Body Corporate
Thailand
49%
Thailand
Cross Hotels and Resorts Ltd
Body Corporate
Thailand
74%
Thailand
FCTG Hotel Holdings (Thailand) Limited
Body Corporate
Thailand
49%
Thailand
FCm Travel Solutions (L.L.C)
Body Corporate
United Arab
Emirates
100%
United Arab
Emirates
Flight Centre (ME) Limited
Body Corporate
United Arab
Emirates
100%
United Arab
Emirates
TP Connects Technologies LLC
Body Corporate
United Arab
Emirates
70%
United Arab
Emirates
Travel Technology FZ LLC
Body Corporate
United Arab
Emirates
70%
United Arab
Emirates
Back Roads Touring Co. Limited
Body Corporate
United Kingdom
100%
United Kingdom
Buffalo Tours UK Limited
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre (UK) Limited
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre (UK) Wholesale Limited
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre Robin Limited
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre Travel Group (European
Finance) Limited
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre Travel Group (European
Holdings) Ltd
Body Corporate
United Kingdom
100%
United Kingdom
Flight Centre Travel Group (UAE
Holdings) Limited
Body Corporate
United Kingdom
100%
United Kingdom
IMAGINE TRAVEL LIMITED
Body Corporate
United Kingdom
100%
United Kingdom
Luxury Travel Acquisitions Limited
Body Corporate
United Kingdom
100%
United Kingdom
Luxury Travel Financing Limited
Body Corporate
United Kingdom
100%
United Kingdom
Luxury Travel Holdings Limited
Body Corporate
United Kingdom
100%
United Kingdom
Scott Dunn Transport Limited
Body Corporate
United Kingdom
100%
United Kingdom
The Luxury Travel Group Limited
Body Corporate
United Kingdom
100%
United Kingdom
Top Deck Tours Limited
Body Corporate
United Kingdom
100%
United Kingdom
Scott Dunn Limited
Body Corporate
United Kingdom
100%
United Kingdom
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
122
ENTITY NAME
ENTITY TYPE
COUNTRY OF
INCORPORATION
EQUITY % OF
SHARE
CAPITAL HELD
BY FLT
COUNTRY OF TAX
RESIDENCE
Casto Travel US LLC
Body Corporate
United States
100%
United States
Compl.Ai, Inc.
Body Corporate
United States
100%
United States
DMC Operations USA Inc
Body Corporate
United States
100%
United States
FCTG Global LLC
Body Corporate
United States
100%
United States
Flight Centre Travel Group (USA) Inc
Body Corporate
United States
100%
United States
Flight Centre USA Holding Corp
Body Corporate
United States
100%
United States
Scott Dunn USA Inc
Body Corporate
United States
100%
United States
StudentUniverse.com Inc
Body Corporate
United States
100%
United States
WHERETO, INC.
Body Corporate
United States
100%
United States
Buffalo Tours USA Limited Liability
Company
Body Corporate
United States
100%
United States
Binh Minh Ngan Ha Co. Ltd
Body Corporate
Vietnam
100%
Vietnam
Buffalo Tours Vietnam Company Limited
Body Corporate
Vietnam
100%
Vietnam
Cho Lon Tours Company Limited
Body Corporate
Vietnam
80%
Vietnam
Flight Centre Share Plan Trust
Trust
Australia
N/A
Australia
The FCM Travel Solutions Black Women
Employee Share Trust
Trust
South Africa
N/A
South Africa
FCTG Corporate Black Women
Employee Trust
Trust
South Africa
N/A
South Africa
Flight Centre Office Trust
Trust
Australia
N/A
Australia
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
123
The board declared the following in accordance with a resolution of the directors of Flight Centre Travel Group Limited:
1. In the opinion of the directors:
(a) the financial statements and notes of Flight Centre Travel Group Limited for the financial year ended 30 June 2024 are
in accordance with the Corporations Act 2001, including:
i. giving a true and fair view of the consolidated entity's financial position as at 30 June 2024 and of its performance for
the year ended on that date; and
ii. complying with Accounting Standards and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable
(c) the consolidated entity disclosure statement required by section 295(3A) of the Corporations Act is true and correct;
2. Note I (a) to the financial statements contains a statement of compliance with International Financial Reporting Standards
3. At the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group
identified in note G2 will be able to meet any obligations or liabilities to which they are, or may become, subject to by virtue
of the deed of cross guarantee described in note G2.
4. This declaration has been made after receiving the declarations required to be made to the directors by the chief
executive officer and the chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial
year ended 30 June 2024.
On behalf of the board
G.F. Turner
Director
BRISBANE
28 August 2024
DIRECTORS’ DECLARATION
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
124
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
111 Eagle Street
Brisbane QLD 4000 Australia
GPO Box 7878 Brisbane QLD 4001
Tel: +61 7 3011 3333
Fax: +61 7 3011 3100
ey.com/au
Independent auditor’s report to the members of Flight Centre Travel Group
Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Flight Centre Travel Group Limited (the Company) and its
subsidiaries (collectively the Group), which comprises the balance sheet as at 30 June 2024, the
statement of profit or loss, statement of other comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, notes to the financial statements, including
material accounting policy information, the consolidated entity disclosure statement and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a.
Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2024
and of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Recognition and measurement of volume incentive contract assets and revenue
Why significant
How our audit addressed the key audit matter
The Group generates volume incentive revenue from travel
providers for achieving annual targets
The volume incentive revenue process is inherently
judgemental and includes various assumptions including:
► Contract periods do not correspond to the Group’s
financial year end. Judgement is required to determine
expected future volumes and the tiered commission rates
to be applied in the circumstances.
► Contracts are renegotiated periodically. Updates to terms
and contractual agreements may result in variations
being received which may relate to past performance.
Given the judgement and estimation involved in the Group’s
accounting for volume incentives, this was a key audit
matter.
We evaluated the Group’s judgements in determining the
volume incentive revenue recognised.
In performing our audit procedures, we:
► Evaluated the Group’s accounting for volume incentives
was in accordance with AASB 15 Revenues from
Contracts with Customers.
► Obtained a sample of the volume incentive agreements
and reconciled the agreed rates to incentive volume
revenue calculations.
► Agreed the underlying travel data used in the volume
incentive calculations to independent third-party booking
information and supplier confirmed data (where
available).
► Evaluated renegotiations are supported by adequate
documentation.
► Agreed volume incentive revenue to cash receipts on a
sample basis.
► Assessed the adequacy of the loss allowance recognised
to support the recoverability of the contract asset
balance.
► Assessed the adequacy of the disclosures included in
Notes A2 and F4 to the financial statements.
Impairment Testing of Intangible Assets
Why significant
How our audit addressed the key audit matter
As at 30 June 2024 goodwill and other indefinite life
intangible assets of $803.8m as disclosed in Note A5, are
allocated to each of the Group’s individually significant cash
generating units (CGUs) or group of CGUs. Note A5 also
discloses the impairment recorded in relation to the Student
Universe CGU during the year.
The Group performs an annual impairment assessment, or
more frequently if there is an indicator that goodwill or
indefinite life intangibles may be impaired. This assessment
involves a comparison of the carrying value of each CGU
with its recoverable amount.
The annual impairment assessment of the CGUs, including
associated intangible assets, performed by the Group was a
key audit matter due to the value of intangible assets
relative to total assets and the degree of estimation and
assumptions involved in the assessment, specifically
concerning forecast cash flows.
Our audit assessed the requirements of Australian
Accounting Standard AASB136 Impairment of Assets.
Our procedures included the following:
► Assessed the Group’s definition of its CGUs for
consistency with Australian Accounting Standards,
assessing any changes in CGUs, and considering
impairment for each of the Group’s individually significant
CGUs or groups of CGUs.
► Assessed whether the allocation of assets, including
goodwill, to CGUs, was consistent with our knowledge of
the Group’s operations.
► Developed an understanding of the process undertaken
by the Group in the preparation of its discounted cash
flow models used to assess the recoverable amount of
the Group’s CGUs, including how key assumptions used in
the cash flow forecasts (summarised in Note A5 to the
financial statements), are determined by management.
► Evaluated the reasonableness of the Group’s cashflow
forecast used to estimate recoverable amount by:
►
Testing the mathematical accuracy of the cash flow
models
►
Assessing the historical accuracy of the Group’s
cashflow forecasts
►
Evaluating key assumptions used in the cashflow
model
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Why significant
How our audit addressed the key audit matter
►
Assessing whether the CGUs included a reasonable
allocation of corporate overheads
► Assessed whether the forecasts were consistent with our
knowledge of the business including Board approved
budgets, corroborating our work with external
information where possible.
► Involved our valuation specialists to evaluate the
reasonability of the discount rates and terminal growth
rates assumptions used by the Group.
► Assessed the sensitivities of the impairment model to
reasonably possible changes in assumptions relating to
cash flow forecasts, growth rates and discount rates
applied.
► Assessed the adequacy of impairment and related
disclosure in Note A5 to the financial statements.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2024 annual report, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
►
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
►
The consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
►
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
►
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
►
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
►
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
►
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 21 to 33 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of Flight Centre Travel Group Limited for the year ended 30
June 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Ernst & Young
Alison de Groot
Partner
Brisbane
28 August 2024
The shareholder information set out below was applicable at 30 July 2024.
(A)
DISTRIBUTION OF EQUITY SECURITIES
NUMBER OF SHARES
NUMBER OF
SHAREHOLDERS
1-1,000
66,805
1,001-5,000
10,851
5,001-10,000
1,203
10,001-100,000
590
100,001 and over
42
79,491
There were 1,715 holders of less than a marketable parcel of ordinary shares.
(B)
EQUITY SECURITY HOLDERS
TWENTY LARGEST QUOTED EQUITY SECURITY HOLDERS
NAME
NUMBER HELD
PERCENTAGE
OF
ISSUED SHARES
Gainsdale Pty. Ltd.
16,590,943
7.5 %
Bennelong Australian Equity Partners Pty. Ltd.
13,165,563
6.0 %
Gehar Pty Ltd
12,763,848
5.8 %
James Management Services Pty Ltd
11,386,249
5.2 %
Ubique Asset Management Pty Ltd
8,314,708
3.8 %
State Street Global Advisors Australia Ltd.
7,770,139
3.5 %
The Vanguard Group, Inc.
7,206,266
3.3 %
Fidelity Institutional Asset Management
6,363,220
2.9 %
Paradice Investment Management Pty. Ltd.
5,905,260
2.7 %
L1 Capital Pty Ltd.
5,738,644
2.6 %
Firetrail Investments Pty Limited
4,603,803
2.1 %
Martin Currie Australia
4,477,948
2.0 %
FLT Share Plan
4,315,343
2.0 %
Milford Asset Management Ltd.
3,883,728
1.8 %
Yarra Funds Management Limited
3,681,325
1.7 %
BlackRock Institutional Trust Company, N.A.
3,603,380
1.6 %
Vanguard Investments Australia Ltd.
3,298,355
1.5 %
Macquarie Investment Management Global Ltd.
3,007,325
1.4 %
DFA Australia Ltd.
2,909,664
1.3 %
BlackRock Investment Management (Australia) Ltd.
2,686,241
1.2 %
131,671,952
59.9 %
1 Substantial holder (including associate holdings) in the company.
ORDINARY SHARES VOTING RIGHTS
On a show of hands, every member present at a meeting in person or by proxy shall have one vote. Upon a poll, each share
shall have one vote. Options and performance rights have no voting rights.
ON-MARKET BUY-BACKS
FLT does not currently have an on-market buy-back scheme in operation.
SHAREHOLDER INFORMATION
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
130
As one of the world's largest travel agency groups FLT is committed to being a responsible corporate taxpayer. The Board
has therefore chosen to provide additional disclosure of tax information as recommended by the Board of Taxation's
Voluntary Tax Transparency Code. FLT is classified as a 'large business' for the purposes of the Tax Transparency Code and
has therefore chosen to disclose the following information in this annual report:
• Tax policy, strategy and governance summary
• Reconciliation of accounting profit to tax expense
• Reconciliation of income tax expense and income tax payable
• Identification of material temporary and non-temporary differences
• Accounting effective company tax rates for Australian and global operations
• Tax contribution summary for corporate taxes paid
• Information about international related party dealings
TAX POLICY, STRATEGY AND GOVERNANCE STATEMENT
APPROACH TO RISK MANAGEMENT AND GOVERNANCE ARRANGEMENTS
FLT operates under a Tax Risk Management and Governance Policy, which is approved by the Board Audit committee and
sets out FLT's commitment to managing its global tax obligations. It is consistent with the Australian Taxation Office (ATO)
and the Organisation for Economic Co-operation and Development (OECD)'s recommendations for tax risk management
and governance, as well as being consistent with FLT's overarching Risk Management Policy.
FLT's Tax Risk Management and Governance Policy includes formal tax policies and procedures that are reviewed and
updated at least annually. FLT has appropriate systems, processes and controls in place to identify, evaluate, mitigate,
monitor and report on tax risks.
ATTITUDE TOWARDS TAX PLANNING AND ACCEPTED LEVEL OF RISK IN RELATION TO TAXATION
FLT takes a conservative approach to tax risk, and the management of tax risk will be balanced with FLT's objective to create
and safeguard shareholder value. Where there is a choice between an aggressive tax position and a more conservative
position, FLT will take the more conservative approach. That is, FLT aims for certainty on tax positions it adopts but where
tax law is unclear or subject to interpretation, written advice or confirmation will be sought as appropriate.
As a global travel business, FLT has entities in many jurisdictions around the world, including some considered low, or no tax
according to the OECD. These businesses are purely established to support the ordinary business operations of FLT in
those countries.
APPROACH TO ENGAGEMENT WITH THE ATO AND OTHER REVENUE AUTHORITIES
FLT's tax philosophy is based on an open, co-operative and transparent relationship with the Revenue Authorities. FLT
maintains good relationships with the ATO and other revenue authorities. Openness, honesty and transparency are
paramount in all dealings with the tax authorities and other relevant bodies, with the aim of minimising the risk of challenge,
dispute or damage to FLT's credibility.
FLT is aware of and, where appropriate, effectively uses the services and compliance products offered by the revenue
authorities to reduce its tax risks and compliance costs (e.g. private ruling process, electronic lodgement, tax portal etc).
TAX TRANSPARENCY REPORT (UNAUDITED)
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
131
INCOME TAX EXPENSE
(I)
INCOME TAX (CREDIT) / EXPENSE
2024
2023
$'000
$'000
Current tax
36,659
10,781
Deferred tax
50,178
10,979
Adjustments for current tax of prior periods
(6,284)
1,287
Income tax expense
80,553
23,047
Deferred income tax (benefit) / expense included in income tax comprises:
Decrease / (Increase) in deferred tax assets
17,681
(2,945)
Increase in deferred tax liabilities
20,116
10,081
Prior period adjustments
12,381
3,843
50,178
10,979
Numerical reconciliation of income tax to prima facie tax (receivable) /
Profit before Income tax expense
219,708
70,459
Tax at the Australian tax rate of 30% (2023 - 30%)
65,912
21,138
Tax effect of amounts in calculating taxable income:
Non-deductible amounts
2,571
1,977
Deductible amounts
(626)
(12)
Interest denial
873
5,829
Legal costs
246
1,093
Intangibles
(804)
(243)
Investments
6,060
(479)
Share based payments
2,292
4,532
Property, plant and equipment
(96)
(1,418)
Changes in tax rate
—
—
Other amounts
(2,804)
(4,449)
73,624
27,968
Tax losses not recognised
17,800
1,340
Tax losses recognised
(4,383)
(7,258)
Effect of different tax rates on overseas income
(204)
(290)
(Over) / Under provision of prior year’s income tax
(6,284)
1,287
6,929
(4,921)
Income tax expense
80,553
23,047
(II)
AMOUNTS RECOGNISED DIRECTLY IN EQUITY
Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss and other
comprehensive income is directly debited or credited to equity.
2024
2023
Net deferred tax - (credited) / debited directly to equity
NOTES
$'000
$'000
Share-based payments reserve
F11
4,292
2,663
Equity component of convertible note
F11
(7,007)
—
Equity raising
D4
—
(1,542)
INCOME TAX PAID AND INCOME TAX PAYABLE
(III)
TAX EXPENSE / (INCOME) RELATING TO ITEMS OF OTHER COMPREHENSIVE INCOME
Cash flow hedges
F11
(671)
234
Net investment hedge
F11
214
(1,489)
Total tax credit relating to items of other comprehensive income
(457)
(1,255)
TAX TRANSPARENCY REPORT (UNAUDITED) CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
132
INCOME TAX PAID AND INCOME TAX PAYABLE (CONTINUED)
(IV)
UNRECOGNISED POTENTIAL DEFERRED TAX ASSETS
2024
2023
$'000
$'000
Unused tax losses for which no deferred tax asset has been recognised (non-capital)
112,583
60,112
Temporary differences relating to brand name impairment (capital) and other
intangibles
53,453
52,178
Investments
13,512
4,875
Lease & decommissioning
3,327
2,367
Other
8,476
6,738
191,351
126,270
Potential tax benefit
47,444
31,401
KEY ESTIMATES & JUDGEMENTS - UTILISATION OF TAX LOSSES
In most cases the unused tax losses have no expiry date. Therefore, while there is uncertainty in the market, assumptions
have been made to support carrying the tax losses. Where the tax losses could not be supported by future operating profits
in the near term or losses were incurred in jurisdictions with restrictions on their use, FLT have not recognised the tax losses.
Unrecognised unused tax losses in 2024 were incurred by the group across numerous jurisdictions. These losses have various
expiry dates from 2025 through to indefinite carry forward.
(V)
CALCULATION OF CURRENT TAX EXPENSE
2024
2023
NOTES
$'000
$'000
Current income tax expense of current period
F12
36,659
10,781
Prior period adjustments to current tax receivable
1,442
2,497
Effect of currency translation
(18)
(562)
Current income tax expense
38,083
12,716
(VI)
RECONCILIATION OF INCOME TAX EXPENSE TO INCOME TAX PAID AND PAYABLE
Net current tax receivable at the beginning of the period
(12,307)
(30,392)
Less income tax (paid) / received
(39,137)
5,369
Current income tax expense
(i)
38,083
12,716
Net current tax receivable at the end of the period
(13,361)
(12,307)
EFFECTIVE COMPANY TAX RATES
2024
2023
Effective company tax rate
%
%
Effective tax rate - Global
36.66 %
32.71 %
Primarily, the difference between the Australian corporate tax rate of 30% and FLT's effective tax rate is being driven by the
effect of global tax rate differences, tax losses not recognised and goodwill impairment.
TAX TRANSPARENCY REPORT (UNAUDITED) CONTINUED
FINANCIAL REPORT 2024 FLIGHT CENTRE TRAVEL GROUP
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TAX CONTRIBUTION SUMMARY
2024
2023
AUSTRALIA
OTHER
COUNTRIES
TOTAL
AUSTRALIA
OTHER
COUNTRIES
TOTAL
Taxes paid by/on behalf of FLT
$'000
$'000
$'000
$'000
$'000
$'000
Corporate income tax
1,271
24,486
25,757
2,251
(11,016)
(8,765)
Employment taxes (payroll tax, FBT)
29,258
21,096
50,354
27,901
33,838
61,739
Withholding taxes
7,978
5,402
13,380
866
2,530
3,396
Other taxes
—
8,063
8,063
—
6,156
6,156
Taxes collected on behalf of others
GST/VAT (collected and remitted)
45,867
65,144
111,011
33,380
69,585
102,965
GST/VAT (paid but reclaimed)
(45,602)
(57,329)
(102,931)
(41,751)
(49,618)
(91,369)
PAYG/PAYE/salary withholding
137,452
165,857
303,309
136,323
136,161
272,484
Total Tax Contribution
176,224
232,719
408,943
158,970
187,636
346,606
TOTAL TAX CONTRIBUTION BY COUNTRY
TOTAL TAX CONTRIBUTION BY TAX TYPE
TAX TRANSPARENCY REPORT (UNAUDITED) CONTINUED
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RELATED PARTY TRANSACTIONS
FLT has international related party dealings with its subsidiaries when it is in the best interests of FLT to do so, these
dealings are conducted following the arm's length principle as required by Australian taxation law and international taxation
norms. FLT maintains contemporaneous transfer pricing documentation supporting the pricing of related party dealings in
accordance with Australian tax legislation and the OECD Transfer Pricing Guidelines.
The key international related party dealings which have a material impact on FLT's Australian taxable income are
listed below.
KEY INTERNATIONAL
RELATED PARTY DEALINGS
DESCRIPTION
Royalties
FLT licences its brand names, trademarks and other intellectual property to its overseas
subsidiaries. FLT subsidiaries may own other brand names, trademarks and intellectual property.
Services
FLT's head office is located in Brisbane, Australia as the company was founded in Australia and its
largest operations are in Australia. Accordingly, there are a number of specialist teams located at
the FLT headquarters which provide services to the overseas subsidiaries. In addition overseas
subsidiaries also provide services to FLT.
Loans
FLT has loans to and from its overseas subsidiaries.
Dividends
FLT receives dividends from overseas subsidiaries.
Group Cost and Income Allocations
FLT and its overseas subsidiaries may enter into global contracts with suppliers and / or customers
for which income and / or expenses may be allocated amongst the group.
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