Corporate Travel Management (ASX:CTD) shared strong progress in a market update released today ahead of the company’s Annual General Meeting. The report indicates gains in the company’s primary markets and effective cost management strategies.
The Brisbane-based company operates across Australia, New Zealand, North America, Asia and Europe, providing tailored travel management solutions for corporate clients. As of FY24, CTD reported record earnings, with revenue up by 9% and EBITDA increasing 21% to $201.7m. CTD’s revenue model, which relies on transaction volume rather than ticket prices, allowed it to thrive despite recent declines in travel ticket prices, particularly affecting regions like Asia.
In the Rest of World segment (excluding Europe), which makes up over 80% of CTD’s revenue, the company is on track to achieve its FY25 targets, including a 10% revenue growth and an expanded EBITDA margin, expected to reach 27.5%. North America and Australia/New Zealand have been leading this growth.
CTD’s European market is in a transition phase this year, shifting from government projects towards a larger corporate client base. The company recently secured a three-year exclusive extension (plus a one-year option) for its UK Government contract, a win that reinforces its position in government travel services. However, due to budget reductions in UK departmental spending, there is some risk of reduced travel activity impacting revenue. Still, CTD has surpassed its annual new client acquisition goals in Europe, highlighting early success in its strategic shift towards corporate clients.
As part of its five-year growth strategy, CTD aims to double its FY24 EPS by expanding its market share, increasing revenue per transaction, and achieving productivity gains through automation. In support of these goals, CTD was also selected for the US Federal Government panel, marking its initial steps toward capturing government contracts in North America. CTD has also begun crisis management services in the US, assisting families affected by hurricanes in Florida, showcasing the company’s broader service capabilities.
Shares are trading 9.46% higher at $12.96.