25 February 2015

CTM delivers record financial results and upgrades profit guidance

CTM delivers record financial results and upgrades profit guidance

Revenue and other income   $83.8m                       (? 93%)

Underlying EBITDA                 $20.2m*                      (? 94%)

Underlying NPAT                    $11.0m*                      (? 69%)

Earnings per share                 10.6c                            (? 47%)

Final Dividend Payable           6.0 cents fully franked (? 33%)

* Underling EBITDA and NPAT exclude one-off acquisition costs ($1.1m pre-tax).

Corporate Travel Management (CTM, ASX Code: CTD) today reported record half-year profits, with increased market share in all regions as a result of strong organic growth and its successful integration of acquisitions.

CTM reported revenues and other income increased 93% to $83.8m on Total Transaction Value of $1,115.9m (up 127 per cent).

CTM has upgraded full-year guidance to an Underlying NPAT in the range of $46m-$48m, up from $45 million previously.

CTM Managing Director Jamie Pherous said the outstanding results came despite challenging market conditions and reflected the organisation’s commitment to client service, acquisitions and growth.

“Today’s results are testament to our ongoing commitment to developing client-driven solutions and technologies which deliver a return on investment for clients. Our mantra of delivering customised, local solutions on a global scale is already demonstrating the benefits to our clients that only a business with global scale can offer” Mr Pherous said.

“The acquisitions we have made have been strategic, allowing us to quickly deliver scale across markets for our customers, but only doing so where we could be sure costs could be constrained and the new businesses align with our CTM vision.

“This half has seen tough business conditions for our industry and clients, but we have delivered strong organic growth wherever we operate because we remain committed to personalised service and delivering the best technology for our customers.”

In Australia and New Zealand, TTV increased 15% despite a softening in the oil and gas sector, supported by a small increase in average ticket prices after a moderation of capacity in the domestic air market.

In North America profit doubled, underpinned by 40% organic profit growth (excluding acquisitions), as the region successfully aligned its acquisitions under a single brand across 18 cities in eight states.

In Asia CTM grew profit by 15%, despite the headwinds against the leisure market related to civil unrest during the first half.

In Europe, CTM’s acquisition of Chambers Travel Group took effect on 02 January 2015 and therefore had no contribution to the first half results. CTM continues to win market share in the region with new client wins above expectation during the first 2 months of integration.

Mr Pherous said the results confirmed CTM’s approach to continually invest in enhancing the customer experience was a distinct advantage in the market.

“Our competitive advantage is we remain absolutely committed to continued investment in enhancing our customers’ experience and the value we deliver for them through our tailored SMART Technology,” he said.

“Despite delivering record results today our focus on the next six months is continued improvement, including ongoing technology development, a focus on scalable organic growth and leveraging our global network,” Mr Pherous said.

“The results of our strategy are there for all to see, and we will ensure our people are empowered to continue to deliver excellent results for our clients and our investors.”

The CTM Board has declared a final fully franked dividend of 6.0 cents per share to be paid on April 10, 2015.