Corporate Travel Management shares lift on positive outlook
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More news: Shares in Corporate Travel Management were up more than 8% to $16.23 in early trading after the travel agency flagged earnings growth for the second half and FY26, despite a weaker half-year result.
RBC Capital Markets analyst Wei-Weng Chen said the results were an FY25 downgrade but FY26 'indicatively' an upgrade.
"CTD's 1H25 results were generally ahead of expectations but FY25 EBITDA guidance was downgraded by -2.3% vs VA consensus estimates (on UK government expenditure cutbacks)... Indicative targets were provided for FY26 EBITDA which imply a 6% upgrade to consensus expectations for that year," the analyst said in a note.
Corporate Travel Management first-half profit slides
The news: Travel agency Corporate Travel Management posted a 42% slide in first-half statutory profit on the back of lower revenues from Europe but has flagged earnings growth for the second half.
The numbers: Statutory profit for the six months to December slumped 42% to $28.4 million. Underlying net profit sank by a third to $38.7 million but was ahead of a $36.5 million Visible Alpha forecast. Revenue was down 6% to $342.8 million and the company will pay an interim dividend of 10 cents a share, down from 17 cents a year ago.
The context: The company said performance in ANZ and North America remained strong, while earnings were down in Asia and Europe. It has previously flagged a revenue decline in Europe, which makes up 20% of revenues. It said on Wednesday more clarity on UK government spending is expected to result in a 24% overall decline in its European revenue. However, revenue for the rest of world is expected to grow by 10%.
The source: ASX
