CTM achieved “stable” travel sales and a 97 per cent client retention rate in its most recent financial quarter, as the TMC continues its recovery from the overcharging scandal.
The Australia-based TMC published a trading update on Wednesday (11 November), covering the period from 1 July to 6 November, which saw CTM’s shares finally resume trading on the ASX on 3 September and IATA restore settlement terms and release a AU$65 million (£34 million) security guarantee.
CTM saw transaction volumes rise by 3.3 per cent year on year in the quarter to 4.55 million. Total transaction value (TTV) fell by 3.8 per cent to AU$2.5 billion (£1.3 billion) over the same period, although this represented a year-on-year rise of 1.9 per cent on a constant currency basis. CTM’s revenue was down by 8.5 per cent year on year to AU$158 million (£80 million) or by 3.4 per cent to AU$164 million (£85 million) on a constant currency basis.
The company highlighted a client retention rate of 97 per cent of TTV during the quarter, as well as new business wins worth a total of AU$258 million (£133 million) in TTV.
Ana Pedersen, CTM’s managing director and group CEO, said the company had “has refocused on driving the business forward” following the resumption of share trading in September.
“I have joined our teams in meetings with customers around the world and have been encouraged by their positive response and continued confidence in the outstanding service they have come to expect from CTM,” added Pedersen in a statement.
“Despite global headwinds, group-wide TTV has remained stable. This provides a strong base for CTM over the next three-to-five years, as we fundamentally challenge what we can become by making better use of our scale, relationships, people, technology and data.”
Pedersen emphasised that CTM would remain “focused” on its customers and “strengthening these relationships, retaining their business and positioning CTM for sustainable long-term growth”.
CTM also gave up an update on its progress in refunding UK clients, including the UK government, who were affected by the overcharging scandal.
The TMC said it had made repayments of AU$66 million (£34 million) during the quarter, which represents around one-third of the AU$198 million (£102 million) it needs to repay to UK clients. This repayment figure is lower than previous estimates due to £15.3 million in “settlement adjustment gains”, according to CTM.
“CTM continues to engage constructively with other affected customers to progress outstanding settlements,” added the TMC in its statement.
Another Australia-based travel firm, Flight Centre – owner of TMC brands FCM and Corporate Traveller – also held an annual general meeting on 11 November when it again cited the strength of its corporate sales, which reached record levels in its last financial year.
Flight Centre’s managing director and CEO Graham Turner said: “Our corporate business is winning accounts and growing strongly in key markets, particularly the US, and we are building an all-in-one solution that goes beyond traditional travel management.”
Gary Smith, the company’s chairman, added: “Customer sentiment remains healthy, with the large majority of our corporate customers expecting to increase or maintain travel budgets in the year ahead.”