Corporate Travel Management (CTM) has posted 70 per cent growth in revenue and a 77 per cent increase in total transaction value (TTV) in the last year, according to its FY23 results published today which show a strong post-pandemic rebound for the business.

Revenue for the financial year from 1 July 2022 to 30 June 2023 rose to AU$660.1 million – exceeding previous earnings guidance of AU$648 million – up from AU$388.7 million in FY22.

Total transaction value in FY23 was AU$8,959.5 million, up from AU$5,070.8 million in FY22. Underlying EBITDA was AU$167.1 million, up 179 per cent from AU$59.8 million FY22, while the group recorded no debt and AU$151 million cash.

The TMC also noted strong momentum in 4Q23 (1 April to 30 June) with revenue greater than 90 per cent of pro-forma FY19 levels.

Revenue in Europe grew 70 per cent to AU$143 million and EBITDA was up 125 per cent to AU$84.1 million, compared to EBITDA in Australia and New Zealand of AU$42.4, in North America of AU$44.8 million, and in Asia of AU$13.9 million.

Its business in Europe benefitted from “major new client and contract wins, with high CTM technology uptake over a significantly larger scale”. Travel activity from its corporate and public sector clientbase “grew rapidly throughout the year, alongside the group’s work relating to the UK government’s ongoing humanitarian work”.

The TMC expects “strong growth” in FY24 in Europe, but added: “Major new contracts and client wins, with high adoption of automation by all clients have contributed to the region’s high margins. The level of margins in the second half of FY23 are unlikely to be sustained into the future”.

In April this year the TMC was awarded its largest customer contract, managing the accommodation needs of asylum seekers in the UK, with associated TTV estimated at around £1.6 billion over two years.

In Australia, the integration of the Helloworld corporate and entertainment businesses was completed in FY23. “This expansion has been instrumental in strengthening CTM’s niche in the government sector and securing arguably the largest corporate account in Australia, the Whole of Australian Government travel management services contract,” the TMC reported. The contract commenced on 1 July 2023 and has a four-year term with three one-year extension options.

TTV in the region has returned to pro-forma FY19 levels due to high airline prices resulting from a lack of international competition, but activity continues to lag behind.

Its client retention rate across the business was 97 per cent while new business wins are expected to contribute AU$2.95 billion in TTV in FY24. It forecasts revenue of AU$770 to AU$850 million in FY24 and EBITDA of AU$240 million.