Corporate Travel Management (CTM) has reported “solid” earnings growth, with net profit increasing 12 per cent year-on-year.
The global Travel Management Company: An agency which manages business travel for a company. saw total transaction value increase 30 per cent to AUS$6.46 billion in the year ending 30 June, driven by market share gains in the US, Europe, Australia/New Zealand and Asia.
Underlying earnings rose 20 per cent to $150.1 million – the top end of CTM’s guidance – while net profit grew to $86.2 million.
The company saw particularly strong earnings growth in Asia, partly thanks to the acquisition of Hong Kong-based Lotus Travel Group Limited.
Managing director Jamie Pherous commented: “This result demonstrates the strength of our strategic approach and the resilience of the company’s operating model. We have stayed the course on our long-term vision and maintained focus on sustainably expanding our global operations, driving organic growth and leveraging our technology platforms.
“The company has grown every year since listing in 2010.
“We are now moving into the third phase of our strategy, which is to optimise our position in each market and further strengthen our technology innovation to drive a leadership position in global corporate travel.”
CTM launched its new technology suite, which includes its Portal and Mobile tools, at this year’s Business Travel Show.
Looking forward, Pherous said: “We recognise the volatility in the global market, and we have stress-tested our forward trading activity accordingly. The lower end of our guidance assumes there is a continuation of the current trading environment as a result of Brexit, US-China trade tensions and the demonstrations in Hong Kong through the end of the calendar year. An earlier resolution to any or all of these events will likely result in increased confidence and client activity above our low-end assumptions.”