CTM delivers record full-year profit

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Corporate Travel Management today reported a record full-year profit and dividend after a significant increase in top-line growth.

CTM reported revenues and other income increased 79% to $197.9m on Total Transaction Value of $2,656m (up 92%), driven by the integration of international acquisitions and organic growth in all markets.

CTM has upgraded full-year guidance to an Underlying NPAT in the range of $61.3m-$63.8m, an increase of 25-30%.

CTM Managing Director Jamie Pherous said the results demonstrated the company’s business model and strategic investment decisions were working.

“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,” Mr Pherous said.

“They reflect the efforts of our award-winning team to win and retain clients, including global businesses who have recognised our international capabilities.”

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

In Australia and New Zealand, underlying EBITDA grew 19.5% to $25.7m 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 North American region delivered a 79.3% increase in EBITDA to $9.5m, supported by 17.3% organic growth.

European acquisition Chambers Travel Group’s contribution to the group is already delivering results, with a 13.2% increase in revenue to $17.2m.

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

Mr 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.

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

Source = Corporate Travel Management
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