Corporate Travel Management Limited (ASX:CTD) Updates FY25 Outlook
Financial Outlook
Corporate Travel Management Limited (ASX:CTD) expects FY25 Group revenue to be approximately 4% softer than forecast, resulting in an EBITDA impact of around $30m compared to the target metrics presented in the 1H results briefing on 19th February 2025.
Regional Performance
In Rest of World ex Europe (RoW), economic and tariff uncertainties in North America and Asia have reduced client activity, leading to slower growth during what is traditionally the busiest period of the year. RoW revenue and EBITDA growth are now expected to be approximately +5% and +10% respectively versus FY24. European target metrics remain on track.
Operational Highlights
New client wins year to date have surpassed TTV $1.6b, with approximately half generated in Europe, significantly above the annual target of $1.0bn. This is expected to positively contribute to the FY26 Group metrics previously released to the market in February 2025. Client retention remains on track at 97%.
Financial Highlights
Cash flow has been strong, in line with the indication of full year cash conversion of 80-90% provided in February. The share buyback program continues with approximately 5.8m shares purchased for $78.2m since inception, reducing total shares on issue to approximately 140.5m shares.
Future Outlook
This outlook assumes that the tariff uncertainty impacting March and April activity remains through the remainder of the financial year, with no further deterioration to April client activity in May and June. FY26 Group metrics will be updated at the FY25 full year August results announcement in accordance with the standard planning timeframe.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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