New clients and company acquisition are boosting Corporate Travel Management’s business and contributing to record profits.
According to the company’s financial update, profits for the six months to 31 December increased to $11 million, while total transaction value (TTV) more than doubled to $1.1 million – up 127 percent on the corresponding period in 2013.
Managing Director Jamie Pherous said the increase comes despite ‘tough business conditions’.
Earlier this year, CTM announced that it is now the platinum sponsor of the Brisbane City Football Club.
The boss attributed growth to new and existing clientele and recent acquisitions, such as the purchase of US-based Diplomat Travel and Europe-based Chambers Travel in January this year. Read on
“In fact we achieved solid organic growth in every acquired business whilst integrating and harmonising these great businesses into the Group.”
Jamie Pherous, CTM Managing Director
Of the company’s operating regions, Australia and New Zealand saw TTV climb 15 percent compared to the same period 2013, while in North America earnings before interest, tax, depreciation and amortisation doubled.
In Asia, the company experienced top-line growth of eight percent, which pushed profits up 15 percent.
For the entire 2014/15 financial year, CTM is expecting an underlying EBITDA to be in the range of $46 million to $48 million – a rise from $45 million during the last financial year.
Mr Pherous said the focus for the rest of the year includes enhancing ‘local’ client service and experience through technology development. This will support organic growth through new client wins and retention of existing clients.
Empowering staff is also on the list of things to enhance this year, as well as focus on leveraging CTM’s network to build markets in the regional and global client segment.
Plus CTM hopes to build a global structure that supports the long term business and maintains empowerment and agility.
With current profits, CTM Board has declared an interim fully franked dividend of six cents per share to be paid on 10 April 2015.
