Corporate Travel Management (CTM) announced that it expects an FY23 profit of between $165-170m, with the company building strong momentum into FY24.
CTM’s 2H23 underlying earnings before interest, expense, depreciation and amortisation (EBITDA) of $113.7 to 118.7m will more than double 1H23’s result of $51.3 million, according to the ASX listed company. It also reported that in 4Q23 its revenue was above 90 per cent of pro-forma FY19 revenues.
CTM attributes its healthy forecast to its high clients retention rate (97%) and high spending contracts across the globe.
Overall, CTM has averaged over $20m/month of underlying EBITDA, $16.5m/month of profit before tax since February 2023.
CTM reported $2.95b of annualised new client wins in FY23, with the majority not yet transacting in FY23.
In Europe, CTM won the Bridging Accommodation and Travel Services contract estimated at £1.6bn (approximately AUD3.0bn) per annum which commenced 1 June 2023.
In ANZ, CTM successfully re-signed the Whole of Australia Government contract for a period of 4 years with 3 x 1-year options.
While the company reported that its EBITDA in Asia has been tracking at record levels since March and in North America its revenue, since march, has averaged over 80 per cent of pro-forma FY19, translating into $6m/month EBITDA.
The numbers in this article remain subject to audit finalisation.
Featured Image: Jamie Pherous, MD at CTM
