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Corporate Travel Management (ASX: CTD) has reported a statutory net profit rise of 38 per cent to $30.6 million for the half year as its strategic international expansion yields positive results for the company.
The Brisbane-based company, founded by its managing director Jamie Pherous, also reported a revenue rise of 15 per cent to $172.8 million on the back of an unaudited total transactional value (TTV) of $2.26 billion, an increase of 21 per cent.
Corporate Travel Management has focused on expansion plans into the US and Europe and Pherous says this has driven organic profit growth of $6.7 million to the half year results.
"This is a reflection of the efforts of our hard working team to win and retain clients, including multinational clients, who have recognised our international capabilities," Pherous says.
"Winning market share is the primary driver for updating FY18 guidance to the top of the guidance range."
The company's original guidance for FY18 is for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $120 million and $125 million which is a 22 to 27.5 percent increase on the prior corresponding period.
Europe was the standout performer for the group with a 239 per cent rise in EBITDA, Australia delivered a 20 per cent rise while Asia and the US were fairly stable due to currency headwinds.
The company will pay a fully franked interim dividend of 15 cents per share on underlying earnings of 34 cents a share.
Pherous founded Corporate Travel Management in 1994 with just two staff in a small Brisbane office and he now heads a business that employs 2,250 people, services more than 70 countries and has a market capitalisation of around $2.26 billion.
Corporate Travel Management (CTM) is now the largest privately-owned travel management company in Australia and it recently reported its strongest ever full-year results for 2016-17, with a net profit increase of 42 per cent to $67 million thanks to strong growth across Europe and the US as well as Australia and New Zealand.
It was the company's 23rd consecutive year of growth and since it listed in 2010 with an issue price of $1.41. At around midday AEDT CTD shares were up by nearly 9 per cent to $23.20.
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Business News Australia
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