CTM delivers record full-year profit

Air New Zealand isn’t the only profitable travel name today, with Corporate Travel Management punching a solid $197.9 million in revenue and other income.

CTM has reported a 70% rise in underlying full-year earnings before interest, tax, depreciation and amortisation to $49.1 million in line with its guidance, after nearly doubling its transaction value to $2.66 billion as it expanded globally.

The company’s Total Transaction Value has leapt by 92% as a result of the integration of international acquisitions and organic growth in all markets.

“We have continued to expand through increasing market share, with organic growth contributing to more than half of our top-line growth,” managing director Jamie Pherous said.

“We will continue to grow organically and make acquisitions where they are an appropriate strategic and cultural fit for CTM, and we have demonstrated we are able to successfully integrate such acquisitions while growing market share organically.”

“These results support the strategy we have taken to integration globally, adding value to our business by ensuring we focus on integrating technology and business culture.”

In its largest division of Australia and New Zealand, CTM reported a 13.7% rise in transaction value with significant client wins despite difficult domestic conditions.

The underlying EBITDA grew 19.5% to $25.7 million on a 13.7% organic increase in TTV, underpinned by internal productivity gains.

In Asia, underlying EBITDA grew 200%, outperforming all market competitors with 39.4% organic growth.

The European expansion to CTM’s global network has delivered two globally significant clients in the past six months.

Pherous said the global network was opening up new client opportunities while delivering the supplier and efficiency benefits of scale.

“We now have more than 100 clients with a presence in multiple countries who, along with other potential clients, are clearly telling us our ability to provide local expertise in all markets is incredibly important to them,” he said.

“We are seeing the benefits of integrating outstanding businesses and people into the CTM group, providing a robust platform for servicing our clients and continued growth.

“The key to our success is surpassing our clients’ expectations, so our focus will be on continual client-facing innovation and leveraging our scale and geography to deliver our clients a constant return on their investment.

“Internally we will continue to make it easier and more efficient for our award-winning team to work, which ensures they maximise the time invested in servicing clients.

“The structural changes we are making, to align all of our regions, are to ensure our staff are empowered, have client ownership and are able to make quick decisions.”

The CTM Board has declared a final fully franked dividend of 10.0 cents per share to be paid on October 9, 2015.

Image: Courier Mail

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corporate travel management ctm jamie pherous