A globetrotting expansion strategy has earned Corporate Travel Management (ASX: CTD) rewards with the Brisbane-based company booking a record EBITDA of $125.4 million in FY18.
This represents 27 per cent year-on-year growth while for FY19 the group forecasts a rate in the range of 15 to 20 per cent.
CTM managing director and founder Jamie Pherous says the performance reinforces the company's global expansion strategy, but organic growth has also been significant to the tune of $18.9 million.
"We have had another strong year. Each region in our network has had a record result, demonstrating our business model and strategic investment decisions are working well for clients and investors," says Pherous.
"We have continued to expand through increasing market share, including multinational clients who have recognised our international capabilities.
"These results support our strategy to build a global network by applying a high-quality growth business model around winning and retaining customers, driving internal automation and client innovation and ensuring high staff engagement and client satisfaction."
CTM's total transaction value edged very close to the $5 billion mark, bolstered as it gained "a number of significant global clients" with the CTM Smart Technology suite.
"We remain committed to delivering superior results for clients through a consistent value proposition, including innovative customer-facing technology solutions underpinned by a highly personalised service offering, and delivering a return on investment to our clients," says Pherous.
European operations registered the highest growth rate with underlying EBITDA taking off 86 per cent to reach $34.2 million, propelled by increased online activity, the group's SMART Technology suite and strong organic growth.
CTM's founding region Australia and New Zealand continued to outperform the market reporting a 21 per cent increase in profits to hit $44 million, underscored by record client win and retention rates.
The CTM Smart Technology is soon to be released for the company's North American division, but nonetheless the region yielded an 8 per cent increase in underlying earnings to reach $38.9 million on a current currency basis.
The company highlighted a strong second half in Asia after ticket prices steadied in January, with underlying EBITDA up 12 percent year-on-year to $20.2 million on a constant currency basis. A roll-out of CTM Smart Technology has been completed in the region, including the Lightning online booking tool which has resulted in strong client wins and automation gains.
In the current financial year, Corporate Travel Management has already acquired Hong Kong-based Lotus Travel Group Limited for $50 million and has a large flow of future developments scheduled throughout the period.
Business News Australia
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