Travel Agents

CTM suffers half-year profit slump, warns of coronavirus impact on FY20 performance

Huntley Mitchell

Huntley Mitchell

Corporate Travel Management (CTM) has suffered a double-digit fall in profit for the first half of the 2020 financial year, and its outlook for the next few months isn’t too rosy, either.

The company reported a statutory net profit after tax of $35.1 million for the six months to 31 December 2019 – down 14 per cent on the first half of FY19 – which it attributed to non-recurring costs and adopting the AASB16 Leases standard for FY20.

CTM’s underlying net profit was down eight per cent to $39 million, while underlying earnings were flat with the corresponding period at $64.5 million.

On a more positive note, the company’s underlying half-yearly revenue rose six per cent to $222.2 million, and its unaudited total transaction value (TTV) grew 12 per cent to $3.3 billion.

CTM reported nothing but positive results for its operations in Australia and New Zealand, with underlying earnings increasing by nine per cent to $24.4 million, revenue rising six per cent to $617 million and TTV growing six per cent to $686.5 million.

Commenting on the results, CTM managing director Jamie Pherous said the company maintained “steady operating momentum” in the first half of FY20 despite macro-economic impacts from Brexit, the Hong Kong protests and the US/China trade war.

“These one-off events have masked an otherwise solid business performance where we have been winning customers, managing costs and growing market share,” he said.

However, Pherous warned investors that while CTM was on track to deliver against its previous earnings guidance for FY20, unprecedented disruption as a result of coronavirus-related travel bans will now impact its performance by $15 million to $40 million.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Events

Women in Travel Awards 2020 postponed

Did you (or were you about to) submit your entry for this year’s awards? If so, you’ll definitely want to give this a read.

Share

CommentComments

Hotels

Airbnb commits $400m to hosts to cover COVID-19 cancellations

by Christian Fleetwood

The short-stay accommodation giant has also secured a $1.6 billion investment from two private equity firms.

Share

CommentComments

Aviation

Airline staff “incredibly fearful” about operating repatriation flights

Qantas will reportedly recruit cabin crew staff from a New Zealand subsidiary, after a call for Australian volunteers for scheduled repatriation flights failed.

Share

CommentComments

Travel Agents

“You can make a difference – just keep it simple”: Aussie agent’s plea to airlines

An Aussie travel agent has called for airlines to simplify the way they distribute information, to help ease the stress the current system is placing on advisors.

Share

CommentComments

Cruise

Majority of Greg Mortimer passengers test positive for COVID-19

Aussie cruise passengers on board the Greg Mortimer, who have been in lockdown since 22 March, have finally received word they will be flying home in the next few days.

Share

CommentComments

Destinations

Museum challenges fans to recreate artworks at home

LA’s Getty Museum has issued an artistic challenge to its social media followers, and the results are equal parts clever and hilarious.

Share

CommentComments

Cruise

Cruise Wrap: CMW and Hurtigruten extend suspensions, Carnival’s new shareholder + MORE

Travel Weekly is doing its best to prevent you from watching Netflix’s entire content catalogue with plenty of news in this week’s Cruise Wrap.

Share

CommentComments

Travel Agents

From sundowners to Zoom yoga: How Bench Africa is keeping agents engaged

In a time of self-isolation and social distancing, keeping personal touch as a key part of your business is more important than ever. Bench Africa is doing this in spades.

Share

CommentComments

Destinations

British police dye ‘Blue Lagoon’ black to deter tourists during COVID-19 lockdown

Despite a nationwide lockdown, and despite it having nearly the same pH as bleach, an abandoned quarry is still drawing visitors. So, the police have responded in a very unique way.

Share

CommentComments

Midweek Interview

Life in the time of COVID-19 with Spencer Travel’s Penny Spencer

We’ve given our Midweek Interview a facelift to suit the times, starting off with the managing director of Spencer Travel and industry legend Penny Spencer.

Share

CommentComments

Aviation

Qantas crew who tested positive for COVID-19 were not required to quarantine

Despite later testing positive for COVID-19, four members of Qantas’ cabin crew were not required to quarantine after operating a repatriation flight from Chile.

Share

CommentComments

Destinations

Austrian authorities face possible class action over COVID-19 outbreak at ski resort

Authorities in the Austrian state of Tyrol are facing a potential class-action lawsuit over their handling of a COVID-19 outbreak at a popular ski resort.

Share

CommentComments