By Javi West Larrañaga and Mireia Merino
(Reuters) -Spanish travel technology firm HBX Group said on Wednesday it was revising its full-year guidance as a result of the macroeconomic backdrop and a weaker U.S. dollar.
The company downgraded its expected 2025 revenues to between 720 million and 740 million euros ($831-$854 million) from a previous guidance of 740 million to 790 million euros.
It also revised down its total transaction value, now expected to grow by 6% to 9% instead of the 10% to 16% projected at the initial public offering in February.
HBX, which buys hotel lodgings, car rentals and other products and resells them in bulk to travel agencies and retailers, said the conflict in the Middle East resulted in double-digit declines at destinations such as Saudi Arabia and Jordan.
It also highlighted a 3% drop in revenues in the U.S. as a result of the weaker currency and lower demand in the country.
Operating in the travel tech sector, the company is particularly exposed to global dynamics. Fluctuations in travel demand driven by rising trade tensions, currency volatility or geopolitical uncertainty could directly affect its booking volumes and revenue outlook.
After a lacklustre start in the Spanish stock exchange, shares in the company have failed to pick up and are now 2% lower than on their February debut, considerably underperforming Spanish blue-chip index IBEX-35’s 23.6% appreciation. HBX is not part of the IBEX.
The group said in a trading update its revenues in the April-June period, the third quarter of its financial year, were up 3% year-on-year.
Earlier in July, analysts from Bank of America and Renta 4 said in separate notes that HBX had substantial upside potential, as the fragmented market it competes in should consolidate around the bigger players and smaller ones are set to be pushed out.
($1 = 0.8661 euros)
(Reporting by Javi West Larrañaga and Mireia Merino in Gdansk; Editing by David Latona)
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