CORPORATE TRAVEL HITS RECORD HEIGHTS
Written on the 26 August 2015
CORPORATE Travel Management (ASX: CTD) has soared through a challenging aviation and economic environment to set a new company profit record.
The Brisbane-based travel business, which operates in 32 countries, grew its underlying profit after tax 76 per cent over the past year to $30.4 million, owing to each region in its network delivering a record profit.
This was from a revenue of $197.9 million, which was up 79 per cent.
Shareholders will be paid a dividend of 10c per share on October 9 2015.
Managing director Jamie Pherous (pictured) says his company's strategy to integration is boosting results across the board.
He says the acquisition of Chambers Travel Group in Europe has helped score more global clients.
"These results support the strategy we have taken to integration globally, adding value to our business by ensuring we focus on integrating technology and business culture," says Pherous.
"We have continued to expand through increasing market share. Organic growth contributed to more than half of our top-line growth, reflecting the efforts of our award-winning team to win and retain clients, including global businesses who have recognised our international capabilities."
A standout was an increase in total transaction value (TTV) in the Australia and New Zealand (ANZ) region of 13.7 per cent, overcoming the weight of the resources slowdown.
The company's North American business is also growing steadily now sitting across 18 cities, with a 107.9 per cent increase in its local revenue to $47.6 million.
Meanwhile, Corporate Travel's Asian business has outperformed competitors in corporate and wholesale over the period.
The company has provided full year underlying EBITDA guidance in the range of $61.3 to $63.8 million, which represents at least 25 per cent growth on the prior corresponding period.