Australia-headquartered Corporate Travel Management (CTM)
has reported a net loss of AU$8.2 million for the 12 months to 30 June
compared to a profit of $86.2 million a year ago but said the company’s corporate activity
was “better than expected” given the downturn in travel caused by Covid-19.
The company’s earnings were down 57 per cent to $65 million,
while revenue dropped 29 per cent to $316.4 million. It recorded a net loss of
$8.2 million attributable to owners.
CTM said its client activity reached its lowest point in
April at the height of the global pandemic but has since started to recover. It
has maintained a client retention rate above 97 per cent throughout the crisis
and won new business in all regions. According to the results, North America
was the largest revenue contributor across the group’s regions for the second
half of the financial year – a first for the company – while activity in the northern
hemisphere (including Europe) represented 81 per cent of the group’s Q4
revenue.
Managing director Jamie Pherous said: “Revenue has been
ahead of our May market update expectations with high exposure to domestic
essential travel. This coupled with our flexible business model and rapid response
to Covid-19 enabled CTM to deliver full-year results that exceeded our market
update provided in May.
“Because we moved early and rapidly with redundancies and
other cost reductions, we have been able to stem our losses very quickly and do
not expect any further significant one-off costs in the current FY21 financial
year. Our business model also positions the business for a rapid return to profitability
with only a marginal increase in domestic travel activity from current levels.”