Corporate Travel Management’s half-yearly profit growth soars

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Business travel company Corporate Travel Management (CTM) has posted double-digit growth across all key financial metrics for the first half of FY19.

The company’s underlying net profit was $46.2 million in the six months to 31 December 2018 – up a whopping 20 per cent compared to the prior corresponding period.

CTM’s half-yearly revenue rose 23 per cent to $212.2 million, and its total transaction value (TTV) jumped 31 per cent to just under $3 billion. Earnings before interest, taxes, depreciation and amortisation lifted 21 per cent to $674.6 million.

Regionally, CTM’s Australia and New Zealand division grew its half-yearly revenue by 15 per cent to $58.3 million, and its TTV by 20 per cent to $649.6 million.

Asia was the strongest-performing region, however, with 47 per cent revenue growth to $38.3 million and 60 per cent TTV growth to nearly $1.1 billion.

CTM achieved a 21 per cent lift in revenue in Europe to $43.3 million, and an 18 per cent rise in TTV to $541.5 million. In North America, the company’s revenue saw a 18 per cent increase to $70.2 million, and its TTV was up 16 per cent to $689.9 million.

Jamie Pherous, founder and managing director of CTM, said the strong performance highlights the company’s strategy to build a global network by applying a high-quality growth business model.

“Our value proposition remains as compelling to our customers today as it did when we began operations 25 years ago,” he said.

“CTM’s unique blend of service, technology and delivering a return on investment is a key driver of our ongoing success.”

“Our diverse business model and global footprint gives us a competitive advantage, while our proven M&A strategy is also providing strong returns.

“Our win and retention rates are at historically high levels, and this includes several multinational customers that recognise our international capabilities.”

Pheros said the company remains focused on executing its strategy to establish a global footprint and generate scale.

“We will also pursue acquisition opportunities that will further enhance our offering to customers throughout the world,” he said.

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