A rise in SME transactions helped American Express Global Business Travel grow its year-on-year revenue by 65% for the first quarter ended March 31 2023.
Total revenue for the global TMC reached $578 million while adjusted EBITDA totalled $99 million, with an adjusted EBITDA margin of 17%.
Amex GBT, which listed on the New York Stock Exchange last year, reported a net loss of $27 million for the quarter, which was an improvement from a $91 million loss in the first quarter of 2022.
A statement said SME transactions grew 61% to reach 88% of 2019 pro forma levels.
In the last year, Amex GBT has won accounts worth $2.2 billion from SMEs, including 30% from organisations whose travel had previously been unmanaged. Total new wins amounted to $3.4 billion per annum.
Paul Abbott, Amex GBT CEO, said: “Nearly one year after going public, we are delivering on the commitments we made.
“We reported strong first quarter 2023 results driven by continued growth in business travel, share gains and ongoing momentum in the SME customer segment.
“Our strong growth, combined with our proven ability to deliver high operating leverage and margin expansion, lead us to expect continued strong results in Q2 and for the full year.”
The statement said revenue increased by $228 million, with travel revenue increasing $210 million, or 82%, primarily driven by continued growth in business travel and recovery from residual impacts of Covid-19.
Revenue from product and professional services rose $18 million, or 19%, mainly thanks to increased management fees and strengthened demand for meetings and events.
Amex GBT is now forecasting 2023 full-year revenue in the range of $2.17 billion to $2.22 billion, up by 17%-20% on 2022, with adjusted EBITDA of between $330 million and $370 million representing a margin of 15%-17%.