Corporate Travel Management flies to new heights

Corporate Travel Management flies to new heights

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 
The MBA that helped Epic Environmental’s startup employee become GM and partner
Partner Content
Environmental engineer Romin Nejad began his career at Epic Environmental at a challeng...
Queensland University of Technology
Advertisement

Related Stories

Black Friday no "be all and end all" for sales as marketing costs bite

Black Friday no "be all and end all" for sales as marketing costs bite

November is often dubbed the new December of retail sales with Blac...

Techtronic slapped with record $15m fine for resale price maintenance

Techtronic slapped with record $15m fine for resale price maintenance

The Australian arm of Hong Kong-based supplier Techtronic has been ...

7-Eleven Australia acquired for $1.7 billion

7-Eleven Australia acquired for $1.7 billion

Convenience store giant 7-Eleven Australia is set to be sold f...

United Airlines now king of the US route with new service from Brisbane to LA

United Airlines now king of the US route with new service from Brisbane to LA

United Airlines has upped the ante for its services into Australia ...