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.