Half Year Results – Corporate Travel Management reveals strong growth.
Corporate Travel Management has boosted profits by 28% in the first half of the financial year, announcing a statutory net profit after tax of $22.1 million.
The company this morning revealed underlying earnings (EBITDA) of $40.4 million in the six months to 31 Dec, an increase of 45% over the same period last year, while its revenue and other income was $150.5 million, up 26%.
Most other major indicators also showed major increases, though total transaction value (TTV) was up by a more modest 9% to $1.87 billion.
“TTV can be a misleading indicator in CTM’s business, as TTV for the half was affected significantly by steep ticket price declines, especially Asia, and negative FX movements to the Australian dollar,” said md Jamie Pherous.
“What is particularly pleasing is that despite these impacts, CTM’s business model continues to provide earnings certainty,” he said.
CTM was winning market share in all jurisdictions because of its STM SMART technology and global network, Pherous said, while high client retention rates were primarily through “delivering high standards of personalised service and demonstrating ROI”.
In Australia and New Zealand, EBITDA grew 23% over the previous first half due to increasing scale and productivity improvements.
See more in today’s Travel Daily.