16 February 2022
Corporate Travel Management - 1H22 Results Ongoing earnings recovery and M&A execution drive first-half results
Corporate Travel Management (CTM, ASX: CTD) reported an underlying EBITDA of $18.2m (1H21: -$15.2m) and a strong revenue rebound in the first half of FY22, building momentum in spite of the impacts of the Delta and Omicron COVID-19 variants.
Group revenue and other income increased by 120% to $163.0m for the first half of FY22, compared to the prior corresponding period and only 27% below pre-COVID revenue.
CTM also maintained its strong balance sheet with no debt and sufficient cash to manage through to full recovery.
While the Omicron COVID-19 variant reduced travel activity from November 2021 to January 2022, CTM currently expects a significant ramp-up in activity in regions where travel restrictions are relaxed or removed.
The United Kingdom and North America are experiencing a rapid rebound in client activity in February 2022 as restrictions have been lifted. The Group also expects to benefit from a greater than normal seasonal weighting of corporate travel activity towards the second half of the financial year.
CEO Europe, Debbie Carling said, “The United Kingdom is leading the way in removing restrictions, which is the strongest forward indicator of a recovery in client activity, and domestic travel is recovering quickly.
“Our revenue rebound shows that clients support our model of personalised service and proprietary technology which helps them to navigate the current complexities of the travel environment. This is translating into new client wins and strong revenue momentum.”
Record Europe profitability
Revenue and other income for Europe increased 229% to $43.8m, compared to $13.3m in the first half of FY21. Despite disruption from the Delta and Omicron COVID-19 variants, the Group reported record underlying EBITDA for Europe of $20.9m.
While CTM has not offered FY22 profit guidance because of the uncertain short-term trading environment, the Group expects underlying EBITDA will continue to build in February and March 2022 as organisations in North America, UK/Europe and Australia/New Zealand return to working in offices after the Omicron variant subsides and restrictions are removed.
The Group will continue to assess acquisition opportunities that support the global strategy to create more levers for long-term organic growth.
Charlie Le Rougetel | Big Top PR
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