Corporate Travel Management shares shed 10% on earnings warning
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More news: Shares in Corporate Travel Management slumped in early trading after the business travel agency projected lower-than-expected revenue and earnings for fiscal 2025, due to the impact of recent US tariff announcements.
CTM shares were down 10.8% to $11.60 at 11am AEST.
Corporate Travel Management flags earnings hit from US tariffs
The news: Travel agency Corporate Travel Management (CTM) has warned that it expects full-year revenue and earnings to be softer than previously forecast, due to "broad economic and tariff uncertainty" leading to reductions in client activity and slower growth.
The numbers: CTM said it expected FY25 group revenue to be 4% softer than forecast, and group EBITDA to be impacted by around $30 million.
The company expects revenue and EBITDA from its rest of world segment, which excludes Europe, to be up 5% and 10% versus fiscal 2024. CTM previously guided for revenue growth of 10% and EBITDA growth of 35% compared to the prior year.
However, the group said new client wins in the year to date have surpassed $1.6 billion in total transaction value, ahead of its annual target of $1 billion.
The context: CTM said its updated outlook assumes the tariff uncertainty impacting March and April activity remains through the remainder of the financial year, but that there is no further deterioration to April client activity in May and June.
The source: ASX
