Corporate Travel Earnings: High Cost of Doing Good as UK Contract Mishap Dents Earnings

We cut our fair value estimate on Corporate Travel by 9% to AUD 20.50 per share. The reduction is all due to a permanent rebasing of forecast contribution from the UK Bridging contract. Just six months after being "awarded," the humanitarian and crisis travel logistics project is now set to deliver a paltry annual EBITDA of AUD 5 million. This is a huge drop from our prior forecast of AUD 23 million and a far cry from management's AUD 30 million expectation.