FCM survives Covid-19 challenges

SINGAPORE, 1 March 2021: FCM Travel Solutions, Flight Centre Travel Group’s flagship global business travel division, reports USD294 million in business accounts has started trading with FCM since January 2021.

It will help fuel the travel management company’s continued recovery in the second half of its financial year that closes on 30 June. FCM reported its half-year results to the Australian Securities Exchange (ASX) on Friday.

FCM’s financial stability, sustained investment in key business areas is underwritten by its parent company, the publicly listed Flight Centre Travel Group (FLT).

In its half-year result, FLT highlighted its AUD1.2 billion liquidity runway as one of the key factors in FLT’s success, “weathering the unprecedented COVID-19 challenge”.

At a time when many of its competitors have been forced to hibernate their operations, the business has drawn on its financial strength to invest heavily in key growth drivers such as new and differentiated products and fast-tracking new technology implementations. 

This has led to a strong pipeline of new account wins, in addition to delivering valuable new products and services to customers globally – thereby enhancing an already compelling customer offering.

During the current financial year that started 1 July 2020, FCM won new business globally with a total projected annual spend (pre-Covid) of USD700 million. Around 60%  of this amount has been secured in Europe and the Middle East, and the Americas, including high profile multinational companies in the technology, financial services, manufacturing, FMCG and pharmaceutical sectors.

FCM, which has a presence in 97 countries, has also continued to invest significantly to secure new clients globally. Total implemented business during the first half of the fiscal year due to close 30 June has a pre-Covid spend of USD590 million and is headlined by FCM’s largest ever global account, a Fortune 100 technology company in 72 markets, as well as the TMC’s first-ever UK government contract, which will be serviced via FCM operations in 40 countries.

FLT’s chief financial officer, Adam Campbell, said decisive actions had been taken, including an AUD700 million equity capital raising and an AUD 400m convertible note issue, as well as restructuring global teams and streamlining business operations.

FCM’s global managing director, Marcus Eklund added: “Other less secure TMCs have been forced into hibernation. FCM has done the opposite. We decided to continue investing in sales implementation… We also continued to win record amounts of new business globally.”