Corporate Travel Management (CTM) has almost doubled its profit for the first half of FY2024 achieving a record result of AUD$100.7 million, up almost 100 per cent and well exceeding its internal forecast of $87 million.
In the six months ending 31 December 2023, CTM reported an underlying EBITDA profit of $100.7 million, which is a 96 per cent increase on the $51.3 million for the same period in 2023.
The revenue and other income increased by 25 per cent to $363.7 million against the $291.9 million reported in 1HFY23.
For the remainder of FY24, CTM forecasts an underlying EBITDA of $230 million, a 31.7 per cent increase on FY23, regardless of external factors.
The Brisbane-based global business travel management company and NTIA 2023 award winner attributed the record results so far to $630 million in new client wins and converting revenue to higher profit growth despite the global corporate market holding at 75 per cent recovery post-COVID.
CTM Managing Director Jamie Pherous said: “The underlying business is performing well and we are executing on the things we can control as demonstrated by continued market share gains and our ability to successfully convert revenue into profit growth.”
CTM’s 5-year plan
The company also revealed a five-year plan to double its FY24 profits organically by FY29, minus any additional acquisitions.
The five-point strategy across five years includes 10 per cent revenue growth per year, 97 per cent annual client retention, successful delivery of productivity and innovation projects, half of every revenue dollar falls to EBITDA and pursuit of acquisitions as an additional opportunity.
It acquired 1000 Mile Group in July 2022 and Helloworld Corporate ANZ in December 2021.
“The key metrics required to execute the plan (client wins, retention, automation project
execution, revenue/FTE) are already being met or exceeded in FY23 and FY24,” Mr Pherous said.
“Furthermore, CTM has a strong track record of acquisition execution and any future acquisitions would be additional to the organic growth from this strategy.
“When combined with our strong balance sheet, we are well positioned for any likely industry consolidation.”
Find out more at au.travelctm.com
