TRAVEL GIANTS FLYING HIGH AFTER ISSUING POSITIVE FULL YEAR FORECASTS
Written on the 5 May 2017 by Ben Hall
BRISBANE'S top two travel companies, Flight Centre (ASX: FLT) and Corporate Travel Management (ASX: CTD) both experienced a remarkable share price surge after revealing solid forecast earnings to its full year targets.
CTD was the standout performer on the ASX on Thursday with shares surging 8.5 per cent to a record high of $22 while FLT shares rose 5.8 per cent to $34.50.
Both companies presented at the annual Macquarie Australia conference in Sydney and Corporate Travel Management revealed a forecast earnings upgrade of a minimum of $97 million for full year EBITDA, compared to its previous guidance range of between $92 to $97 million.
Flight Centre announced it was on track to achieve its full year forecasts.
Corporate Travel Management provides technology for corporate travel management, backed up by personalised customer service, and it now employs more than 2,000 people with clients in 53 countries.
CTD's managing director Jamie Pherous (pictured) says the company has a strategy that covers the next four to five years.
"We're executing our plan, and we're winning a lot of global clients," Pherous says.
"We're putting our heads down and executing our plan, that's the key thing, and we've got a strong plan in place to 2021," he says.
Pherous owns a 20 per cent stake in the company which means his net worth climbed $37 million in one day to $476 million, on paper.
Flight Centre's managing director Graham Turner added $29 million to his net worth on paper to $524 million with his 15 per cent stake in the company.
At 11am AEST on Friday CTD shares rose again by two per cent to $22.48 and FLT shares were also up a further two per cent to $35.17.
Business News Australia
Author: Ben Hall