Corporate Travel Management (ASX: CTD) Surges 10% Despite Profit Decline

February 19, 2025 09:03 AM HKT | By Team Kalkine Media
 Corporate Travel Management (ASX: CTD) Surges 10% Despite Profit Decline
Image source: shutterstock

Highlights

  • Shares jump 10% to $16.50, despite a 6% revenue decline and a 33% drop in net profit.
  • Interim dividend cut by 41%, down to 10 cents per share.
  • Strong growth outside of Europe, with a 38% rise in underlying EBITDA in the Rest of World segment.

Corporate Travel Management Ltd (ASX:CTD) has seen a strong 10% jump in its share price to $16.50, even after reporting weaker earnings for the first half of FY 2025.

The company's half-year revenue fell 6% to $342.8 million, while underlying net profit after tax dropped 33% to $38.7 million. This led the board to reduce its interim dividend by 41% to 10 cents per share.

Europe Drags, But Rest of World Thrives

The weaker performance was largely due to its European operations, which wound down one-off war-related contracts from FY 2024. However, excluding this region, the Rest of World segment delivered a 38% growth in underlying EBITDA, demonstrating the company's resilience and strong business model.

According to management, this highlights CTM's ability to expand market share, increase revenue per transaction, and boost efficiency through automation and proprietary technology.

Future Outlook: Earnings Set to Rebound

Looking ahead, CTM expects a much stronger second half, as the company continues to leverage its global scale and technology-driven efficiencies. Management has also set an ambitious target to double its FY 2024 earnings per share within five years, signaling confidence in its long-term growth potential.


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