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Up, up and away: Opening global borders means 2400 per cent profit boost for CTM

Business

The reopening of global borders has flowed through to the bottom line of Corporate Travel Management which has reported a 2400 per cent increase in net profit of $76 million.

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The company’s revenue jumped 70 per cent to $660 million, which exceeded its guidance and CTM said its fourth quarter provided strong momentum for the current financial year.

It declared a 22 cents a share dividend.

It has forecast revenue for 2024 of between $770 million and $850 million and EBITDA of between $240 million and $280 million.

“This result will deliver record earnings per share for 2024, which would validate the group’s strategy through the global pandemic,” the company said.

“While July and August is seasonally a quiet period for corporate travel, activity is tracking significantly above July 2022 with transaction +42 per cent and revenue +34 per cent. The group has secured 15 per cent of its 2024 global sales target in July.”

Surveys had also revealed to the company that the demand for business travel was growing.

Managing director Jamie Pherous said the company’s performance validated the strategy during the pandemic when it announced expansions.

“We are taking strong momentum into 2024 with EBITDA averaging $20 million a month and profit before tax and amortisation averaging $16.5 million a month since February 2023,” he said.

“Pleasingly, we are successfully converting revenue recovery into net profit.”

Pherous said CTM had been investing in artificial intelligence and automation for the past two years with encouraging results.

“It’s early days in the life cycle and we are already saving 1000 work hours per month,” he said.

“A key goal for 2024 is to expand this globally to free up our consultants to manage high value, urgent transactions typical of our client base and to ultimately provide superior self-service capability at any time of the day for our customers.”

 

 

 

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