CTM outdoes itself by 179% in FY23 results posting

Corporate Travel Management (CTM) has revealed its FY23 underlying earnings before interest, taxation, debt and amortisation (EBITDA) of $167.1 million, up 179 per cent from FY22 results.

CTM’s second half of FY23 proved strong as the company reported an EBITDA of $115m and its revenue was over 90 per cent of FY19 levels in the last quarter of this financial year.

Shareholders can expect to receive unfranked dividends of 22 cents per share.

CTM’s managing director, Jamie Pherous, commended the strong performance by the company and said it reflects its successful strategy during the pandemic.

“We are taking strong momentum into FY24 with EBITDA averaging $20 million per month and PBTa (profit before tax and client amortisation) averaging $16.5 million per month since February 2023. Pleasingly we are successfully converting the revenue recovery into net profit,” Pherous said.

The company also reported that its revenue increased by 70 per cent to $660.1m.

Within the ANZ market, revenue rose 134 per cent to $160.1m while the underlying EBITDA increased by 265 per cent to $42.4m.

CTM said that the integration of the Helloworld corporate and entertainment businesses, which was completed this past year, has been instrumental in strengthening CTM’s niche in the Government sector and securing arguably the largest corporate account in Australia, the Whole of Australian Government travel management services contract.

This program commenced on 1 July 2023 and has a 4-year term with 3 one-year extension options.

The company also noted that ANZ TTV has returned to FY19 levels, but is lagging due to high airline prices due to the lack of international competition.

CTM’s focus for the ANZ business in FY24 is to convert the recovery in activity into revenue and profit by transitioning retained government clients to CTM technology from January 2024, growth supplier revenues with the continued international travel recovery and building on the increasing use of artificial intelligence (AI).

“We have been investing in AI and automation for the last two years and we are encouraged by the results in the last quarter,” Pherous said.

“It is early days in the life cycle and we are already saving 1000 work hours per month. A key goal for FY24 is to expand this globally to free up our consultants to manage high value, urgent transactions typical of our client base and to ultimately provide superior self-service capability at any time of the day for our customers”.

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

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