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CTM FY23: Revenue from Asia up 198%

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SYDNEY, 24 August 2023: Corporate Travel Management, a global business travel management group, has announced FY23 results indicating strong trading momentum after reporting AUD2.95 billion of annualised new client wins in the second half of FY23.

Revenue for the three months to June 2023 equated to more than 90% of the total for FY19 – the last financial year before Covid-19 CTM reported to the Australian Stock Exchange (ASX) on Tuesday.

Its FY23 results showed revenue increasing 70% to AUD660.1 million (FY22: AUD388.7 million), exceeding the company’s earlier guidance of AUD648.0 million, and underlying EBITDA of AUD167.1 million, representing growth of 179% (FY22: AUD59.8 million).

Asia

AUD millions unless stated otherwise

Revenue from Asia rose 198% to AUD51.6 million, and underlying EBITDA increased to AUD13.9 million (FY22 AUD(3.0) million), reflecting an impressive turnaround since the China market re-opened early in the second half of the financial year.

CTM’s Asia market share has doubled compared to FY19 levels, and the business has delivered record profits since March 2023 on a 70% recovery in revenue. As a result, CTM forecasts the region will surpass its FY19 EBITDA record of AUD25 million in FY24 through market recovery and continued client wins.

CTM managing director Jamie Pherous said: “We are taking strong momentum into FY24 with EBITDA averaging AUD20 million per month and PBTa averaging AUD16.5 million per month since February 2023… We are successfully converting the revenue recovery into net profit”.

Trading update and outlook
CTM entered FY24 with strong revenue and earnings growth momentum and continues to see encouraging signs for FY24.
Whilst July and August is a seasonally quiet for corporate travel, activity is tracking significantly above July 2022, with transactions +42% and revenue +34%.

The Group’s annual Global Customer Survey, conducted in May 2023, indicates a growing appetite for corporate travel in the year ahead. The findings show that survey respondents expect to travel the same or more in the year ahead for client meetings (94%), internal meetings (91%), international travel (85%) and same-day business trips (84%) in the year ahead. This points to continued recovery in client travel.

CTM has forecast revenue of AUD770 million to AUD850 million, EBITDA of AUD240 million to AUD280 million and PBTa of AUD193 million to AUD233 million for FY24.

Definitions
EBITDA – earnings before interest, taxes, depreciation and amortisation.
PBTa – profit before tax and client amortisation (non-cash amount).
NPAT – net profit after tax.
Underlying – Excludes one-off acquisition, integration costs, other non-recurring items, and client amortisation, a non-cash expense.

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