Taxes brought in by the Trump administration have dented traveller confidence, and FCTG’s earnings.
FCTG has amended its 2025 fiscal year profit guidance this morning, expecting its underlying profit before tax to be between $300 million and $335 million, down from $365 million to $405 million.
FCTG has conceded it is “unlikely to deliver the 14-26.5% year-on-year growth needed to achieve its initial FY25 targets”, with short-term results volatility brought about by uncertain trading conditions, including the recent changes to United States’ trade and entry policies.
Second quarter earnings momentum reported at the half year flowed through to early third quarter results, FCTG noted, before American policy changes began to impact business and consumer confidence and corporate and leisure sales last month.
Trading results from early this month point to ongoing uncertainty, which looks likely to slow FCTG’s growth in the heavily weighted May-Jun period.
More details in today’s issue of Travel Daily.