Corporate Travel Management (CTM) has released its half-yearly results, and there’s a lot to unpack.
Firstly, the company has recorded unprecedented growth both locally and on a global level, with earnings (EBITDA) of $53.5 million reflecting a 32 per cent increase on the previous year.
As well as this, CTM’s global operations continued to grow, recording $2.25 billion in total transaction value, up 21 per cent, with revenues up 15 per cent.
However, most interestingly is the huge amount of sales taking place online for the company.
According to the results, Australia and New Zealand continued to outperform, reporting a 20 per cent increase in EBITDA to $18.9 million.
This result was secured with record client win and retention rates, while an impressive 80 per cent of customers transactions are now completed online, the release said.
CTM Managing Director and founder Jamie Pherous said the results are indicative of their strategy to build a global network.
“We remain focused on winning and retaining customers, driving internal automation and innovation, and ensuring high staff engagement and customer satisfaction.”
“Our win and retention rates are at historically high levels, while our proven M&A strategy is also providing strong returns,” he added.
“We have delivered a great set of results despite ticket price decline affecting revenue and a negative foreign exchange rate impact.”
Europe was CTM’s top performing region by growth percentage, with an EBITDA of $12.9 million up 239 per cent on the previous year’s period.
The performance was underpinned by a combination of increased online business activity and strong client win rates.
Meanwhile, Europe was CTM’s top performing region by growth percentage, with an EBITDA of $12.9 million, up 239 per cent.
“We continue to win significant customers off the back of our increased global presence and award-winning SMART technology offering,” Pherous said.
“Our regional technology development strategy is well underway, allowing us to customise the global technology platform for local market needs, with a large flow of developments scheduled throughout FY18 in all regions.”
CTM Asia’s business faced difficulty following unexpected ticket decline negatively impacting supplier revenue.
Although, despite uncertainty regarding US tax reform and the impact of weather events, CTM North America provided steady revenue and profit contributions, with earnings up 9 per cent on constant currency.
“CTM is well positioned to profit from enormous market share potential across the globe,” Pherous said.
“Our management team will continue to leverage our scale and buying power to ensure long-term sustainability and earnings certainty.
“We will also pursue acquisition opportunities that will further enhance our offering to customers throughout the world.”