Travel Agents

Corporate Travel Management enjoys double-digit profit growth after turbulent FY19

Huntley Mitchell

Huntley Mitchell

Corporate Travel Management (CTM) has wrapped up a drama-riddled financial year on a very positive note, posting double-digit increases in profit and revenue.

In the 12 months to 30 June 2019, the company’s statutory net profit after tax grew 12 per cent to $86.2 million, compared to its impressive FY18 performance.

CTM’s revenue rose 21 per cent to $449.5 million last financial year, and total transaction value (TTV) soaring 30 per cent higher to $6.5 billion.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 20 per cent to $150.1 million.

CTM’s Australian and New Zealand operations saw EBITDA grow 17 per cent to $51.5 million, revenue grow 12 per cent to $121.7 million, and TTV grow 16 per cent to $1.3 billion.

You can check out CTM’s performance breakdown by region in full below:

CTM's regional FY19 results

The results cap off a rather turbulent last 12 months for the company, which saw some explosive allegations from a hedge fund, the shock departure of long-serving chairman Tony Bellas, and an embarrassing shareholding blunder involving boss Jamie Pherous.

Pherous said the FY19 results demonstrates the strength of CTM’s strategic approach and the resilience of the company’s operating model.

“We have stayed the course on our long-term vision and maintained focus on sustainably expanding our global operations, driving organic growth and leveraging our technology platforms,” he said.

“The company has grown in every year since listing in 2010.

“We are now moving into the third phase of our strategy which is to optimise our position in each market and further strengthen our technology innovation to drive a leadership position in global corporate travel.”

CTM has also provided its FY20 guidance for underlying EBITDA of between $165 million and $175, excluding the impact of the new accounting standard AASB16).

Including the impact of AASB16 would result in an increase of approximately $10 million to underlying EBITDA, but have almost no impact on profit, according to the company.

“We recognise the volatility in the global market, and we have stress-tested our forward trading activity accordingly,” Pherous said.

“The lower end of our guidance assumes there is a continuation of the current trading environment as a result of Brexit, the US-China trade tensions and the demonstrations in Hong Kong through to the end of the calendar year.”

“An earlier resolution to any or all of these events will likely result in increased confidence and client activity above our low-end assumptions.”

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