Corporate Travel Management’s Shares Uplifted On ASX After Posting Strong 1H FY 2019 Results

Corporate Travel Management’s Shares Uplifted On ASX After Posting Strong 1H FY 2019 Results

Travel services provider, Corporate Travel Management Limited (ASX: CTD) has released its half-year results for FY 2019. The company has reported Total Transaction Value (TTV) (unaudited) at $2,951.5 million for H1 FY19, up 31% on the previous corresponding period (pcp). For H1 FY19, the Revenue and other income of the company increased by 23% to $212.2 million as compared to pcp. The company reported an underlying EBITDA of $64.6 million for H1 FY19, representing 21% growth on the previous year and on a constant currency basis, the underlying EBITDA is $61.8 million up 16% on pcp. 

Following the release of the half-year results, the share price of the company increased by 14.69% as on 20 February 2019.

While commenting on the half-year results, the company’s Managing Director Jamie Pherous told that the company has delivered a great set of results across all of its operating regions and this strong performance reaffirms the company’s clear strategy to build a global network by applying a high-quality growth business model.

In Australia and New Zealand (ANZ), the company delivered an underlying EBITDA of $22.3 million which is 18% higher than pcp. In the second half of FY 2019, it is expected that ANZ region will be a significant contributor to Group profit.

In the North America region, the company delivered Underlying EBITDA of $17.9 million which is 3% higher than pcp. In Asia and Europe region, the company’s Underlying EBITDA increased by 34% and 30%, respectively. In the Asia region, the company is experiencing a small decline in the ticket price and activity, but it is not expected to have an impact on the second half of FY 2019. The company expect the Asia region to have a strong second half and be a key contributor to incremental profit growth in FY 2020 and beyond.

During the half year period, the company won significant global clients, mainly due to the Company’s global network and its innovative SMART technology suite. The company’s network provides localised service solutions employing around 2,700 FTE staff.

The board has declared a fully franked half-year dividend of 18.0 cents per share with an ex-dividend date of 7 March 2019, the record date of 8 March 2019 and payment date of 12 April 2019. The company is currently tracking at the top end of FY19 Guidance (underlying EBITDA AUD$150m +20%). Earlier in August 2018, the company provided FY19 underlying EBITDA range of AUD$144-150 million.

On the price-performance front, the stock of Corporate Travel Management Limited closed the trading session at $28.810 on 20 Februrary with a market capitalization of circa $2.73 billion. The stock has generated a YTD return of 17.99% and posted returns of -17.59%, 12.24% and 4.84% over the last six months, three months and one-month period respectively. It has a 52-week high price of $33.870 and a 52-week low price of $19.200 with an average trading volume of ~312,711.


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