American Express Global Business Travel has seen transactions recover to 76 per cent of 2019 levels in June, marking another “strong” quarter for the company.
During an earnings call on Thursday – the first as a publicly-listed listed company – Amex GBT reported revenue for the quarter rose 217 per cent year-over-year to US$486 million, with US$388 million listed as "travel revenue” and the remaining $98 million as "product and professional services revenue".
Revenue recovery represents 64 per cent of 2019 levels on a pro forma basis, with the company posting a vastly improved net loss of US$2 million compared to a loss of US$55 million reported for the same period in 2021.
CEO Paul Abbott attributed the revenue growth to the company’s November 2021 acquisition of Egencia, coupled with increased management fees, the recovery of post-pandemic travel and a rise in meetings demand.
Abbott also pointed to a number of new client wins over the last 12 months, including American multinational investment bank JPMorgan Chase, which together represent US$4.2 billion in annual travel volume, based on 2019 spend.
According to a report by BTN Europe sister publication, The Beat (subscription required), Abbott said the TMC will “have the privilege of serving JPMorgan from the third quarter of this year”. The development comes despite JPMorgan Chase's recent acquisition of travel agency operator, Frosch, which also offers corporate travel management services.
The TMC reported a 95 per cent customer retention rate for the last 12 months, as well as steady recovery of corporate travel volume during the quarter. SME transaction recovery in the month of June 2022 reached 84 per cent of 2019 levels, reportedly driven by stronger recovery and “new wins momentum”.
“Listing as a public company in the second quarter was a significant milestone and marked the beginning of the next phase of growth for Amex GBT,” Abbott said. “Our strong first half of 2022 and continued share gains give us the confidence to raise our full-year 2022 guidance once again.”
Adjusted earnings before interest, taxes, depreciation and amortisation for the quarter came in at US$47 million, up from negative US$74 million in adjusted EBITDA in the same period last year.
Full-year 2022 revenue guidance was raised to a range of US$1.8 billion to US$1.85 billion and full-year adjusted EBITDA guidance to a range of US$90 million to US$100 million.
The TMC expects the recovery in transactions to reach around 74 per cent of 2019 levels for the year, which CFO Martine Gerow said represents a "steady but modest continued recovery in the second half," according to The Beat’s report.
Abbott said markets like China, which haven’t yet opened to international travel, present “opportunities for transaction growth” despite ongoing challenges such as airline operational constraints, supply delays and macroeconomic factors.