Flight Centre Travel Group Limited (FLT)



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General Information
Company Name: Flight Centre Travel Group Limited
Stock Code: FLT
Website: www.flightcentre.com.au
GICS Sub-Industry: Hotels, Resorts & Cruise Lines
Market Cap ($M): 3,210
Equiv. Shares (M): 101

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 31.870 $ 35.140 $ 35.670 $ 31.410 $ 31.870 1,902,018 0%

Current Broker Consensus Recommendation more
Recommendation: Buy (2)
Recommendation Date: 17th Dec 2014
Brokers Surveyed: 5

Company Overview

Business Description:
Flight Centre Travel Group Limited (FLT, formerly Flight Centre Limited) is engaged in travel agency business. The Company provides a complete travel service for leisure and business travellers in Australia, New Zealand, the United States, Canada, the United Kingdom, Africa, Middle East, Asia, New Zealand, and Europe. FLT consists of more than 30 brands with four categories of brands which are Leisure, Corporate, Wholesale and other. The flagship brand is Flight Centre leisure brand.

Strategy Analysis:
The strategy has been to super size its international market share and become a leader in the corporate and retail travel market. This scale aims to enable the group to enhance its global purchasing power and so negotiate better deals with travel providers. A complementary online and offline product offering is being developed. Flight Centre reported NPAT up 12.5% to $91.8m for the half-year ended 31 December 2012. Revenues from ordinary activities were $1.02bn, up 6.9% from the same period last year. Diluted EPS was 91.2 cents compared to 81.0 cents last year. The net operating cash outflow was $110.8m compared to an outflow of $20.2m in the pcp. The interim dividend declared was 46 cents compared with 41 cents last year. Looking ahead, after tracking at the top end of its guidance range at the end of the first half, the Company recorded strong trading results in January. As a result, the company expects to be in the order of 10% up on the pcp by the end of February 2013. With its key trading months to come, the Company will continue to target a PBT between $305m and $315m for the full year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 293.3 291.6 9.0 10.9 175.0 5.5 100.0
2015  F 269.2 267.7 2.2 11.9 161.0 5.1 100.0
2014  A 263.6 261.8 9.9 18.4 152.0 3.2 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Flight Centre Travel Group (FLT) $3,529 M 0.0558 0.0821 0.0873 13.5898 12.5582 11.5503 4.34 4.65 5.20
Mantra Group (MTR) $669 M -- -- -- -- -- -- 0.00 -- --

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
FLT 0.75 11.9 2.92 1.41 1.45
Market 0.88 14.7 1.18 1.88 1.45
Sector 1.34 17.7 2.28 1.41 2.28

Directors
Name Position Start Date
Mr Graham Francis Turner Managing Director 17 November 1987
Mr Robert (Richard) Anthony Baker Non-Executive Director 20 September 2013
Mr John Eales Non-Executive Director 13 September 2012
Ms Cassandra Leigh Kelly Non-Executive Director 01 September 2014
Mr Gary Warwick Smith Non-Executive Director,Non-Executive Chairman 02 November 2007

Management
Name Position
A. Flannery Chief financial officer
M. Waters - Ryan Chief operating officer
David C Smith Company Secretary
R. Flint Executive general manager - global corporate and Asia
C. Galanty Executive general manager - UK, South Africa
D.W. Smith Executive general manager - USA

Substantial Shareholders
Holding Name
12,989,750 (12.90%) James Management Services Pty Ltd
15,200,000 (15.10%) Gainsdale Pty Ltd
14,817,910 (14.80%) Gehar Pty Ltd

Calendar of Events
Date Event
17 September 2015 Report (Annual)
26 August 2015 Report (Annual)
26 August 2015 Report (Prelim)
02 March 2015 Report (Interim)
25 February 2015 Report (Interim)
24 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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