T&T Acquisition Buoys CTM Revenue Amid Omicron Travel Decline

Australia-based Corporate Travel Management reported a “rapid rebound” in travel activity this month in the U.K. and North America as restrictions are lifting.

For the first half of the 2022 fiscal year, which runs through June 30, CTM reported group revenue and other income was up 120 percent year over year to A$163 million (US$117 million), which was 27 percent below pre-Covid-19 revenue levels, according to the travel management company. While travel activity took a hit from November to January due to the Covid-19 omicron variant, revenue has been boosted by CTM’s acquisition of Travel and Transport, with North America revenue up 213 percent year over year to A$92 million (US$66 million) for the June-through-December period. The 2022 fiscal year figures comprise a full six months of T&T activity, compared with only two months in the 2021 fiscal year figures.

CTM projects “improving profitability” in North America as it integrates to a single client system by June 2022, gains more users of its Lightning online booking tool and focuses on acquiring new clients with its new organizational structure. North America has been leading the company in client wins, including three new global clients totaling US$80 million in total transaction value that joined CTM in recent months, according to CTM.

CTM also said it would “continue to assess acquisition opportunities” to grow globally. Besides the T&T deal, CTM in December announced an agreement to buy Helloworld’s corporate and entertainment businesses, which it expects to close in the third quarter of this year.

For the first half of the fiscal year, CTM reported a net loss of A$10 million Australian (US$7.2 million), compared with a A$37 million (US$26.6 million) loss the year prior.