Continued business travel recovery and big client wins have helped global travel management company CTM achieve a 70% rise in revenue to AUS$660.1 million (£340 million) in the last financial year to June 30.
The figure was slightly above its previous guidance of AUS$648 million and was more than 90% of revenue for the 2019 financial year.
CTM noted that 89% of its 2023 revenue came from transactions, not overall price volume (TTV).
The group’s underlying EBITDA was AUS$167.1 million, up 179% from AUS$59.8million in 2022.
The business won AUS$2.95 billion of annualised new client wins in the 2023 financial year, the majority of which are not yet transacting.
Announcing the results today, CTM said it continues to see encouraging signs for the 2024 financial year.
“Whilst July and August is seasonally a quiet period for corporate travel, activity is tracking significantly above July 2022 with transactions up 42% and revenue up 34%,” said the announcement.
“This is a result of strong client wins starting to transact.”
It added that its annual Global Customer Survey, conducted in May 2023, indicates a growing appetite for corporate travel in the year ahead.
The findings showed that clients 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.
CTM is forecasting revenue of between AUS$770 million and AUS$850 million and EBITDA of AUS$240 million to AUS$280 million for 2024.
Managing Director, Jamie Pherous, said: “Our performance in FY23 validates our successful strategy during the pandemic which has given us a larger global platform.
“Pleasingly we are successfully converting the revenue recovery into net profit”.
CTM’s European business achieved record EBITDA of AUS$84.1 million, representing year-on-year growth of 125% and approximately doubling pro forma 2019 levels.
Revenue rose 70% to AUS $143.0 million.
CTM said the region’s performance benefited from major new client and contract wins, with high CTM technology uptake over a significantly larger scale.
“Travel activity by our corporate and Government client bases grew rapidly throughout the year, alongside the Group’s work relating to the UK Government’s ongoing humanitarian work,” it said.
“The increase in the UK Government activity in FY23 had a material impact on Operating Cashflow as a result of invoice terms.”
In April 2023, CTM was awarded its largest customer contract, to manage the accommodation needs of asylum seekers in the UK.
The TTV (price volume) associated with this contract is estimated to be around £1.6 billion over two years.
“As this contract only became operational in June 2023, it had little impact on the FY23 results, but it is expected to contribute significantly to the Europe region’s results in future years. The Europe business is expected to have strong growth in FY24,” said the statement.