Corporate travel management (ASX:CTD) has shared important progress in a market update published today ahead of the company’s Annual General Meeting. The report indicates earnings 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 bespoke travel management solutions for corporate clients. In FY24, CTD reported record earnings, with revenue rising 9% and EBITDA rising 21% to $201.7 million. CTD’s revenue model, which is based on transaction volume rather than ticket prices, has allowed it to thrive despite the recent decline in travel ticket prices, which has particularly affected regions such as Asia.
In the Rest of the World (ex-Europe) segment, which represents more than 80% of CTD’s revenues, the company is on track to achieve its FY25 goals, including 10% revenue growth and expanded EBITDA margin, forecast at 27.5%. North America and Australia/New Zealand have been the leaders of this growth.
The European CTD market is in a transition phase this year, moving from government projects towards a larger corporate customer base. The company recently secured an exclusive three-year extension (plus a one-year option) to its contract with the UK government, a win that strengthens its position in government travel services. However, due to budgetary reductions in UK departmental spending, there is a risk that reduced travel activity will impact revenue. However, CTD exceeded its annual new customer acquisition goals in Europe, highlighting initial success in its strategic shift towards enterprise customers.
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 U.S. federal government panel, marking the first steps toward procuring government contracts in North America. CTD also began crisis management services in the United States, assisting families affected by hurricanes in Florida, demonstrating the company’s broader service capabilities.
The shares are trading up 9.46% at $12.96.