Corporate Travel Management reported an 8.5 percent year-over-year decline in first-quarter revenue despite a 3.3 percent increase in transactions, while noting it had repaid about one-third of the settlement liabilities owed to U.K. clients affected by its overcharging scandal.
The Australia-based travel management company published a trading update on Wednesday, covering the period from July 1 to Sept. 30, which is the first quarter of CTM's 2027 fiscal year. In the quarter, CTM's shares resumed trading on the ASX on Sept. 3 and IATA restored settlement terms and released a A$65 million (US$44 million) security guarantee.
CTM's transaction volumes rose by 3.3 percent year over year in the quarter to 4.55 million. Total transaction value fell by 3.8 percent to A$2.5 billion ($1.7 billion) over the same period, although this represented a year-over-year rise of 1.9 percent on a constant-currency basis. CTM's revenue was down by 8.5 percent year over year to A$158 million ($108 million) or by 3.4 percent to A$164 million (US$112.5 million) on a constant-currency basis.
The company reported a client-retention rate of more than 97 percent, as measured by TTV, for the fiscal year to date through Nov. 6, along with A$258 million (US$177 million) in new business wins.
Ana Pedersen, CTM's managing director and group CEO, said the company had "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."
Overcharging Update
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 A$66 million (US$45 million) during the quarter, which represents around one-third of the A$198 million (US$136 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 Nov. 11 when it again cited the strength of its corporate sales, which reached record levels in its last financial year.
Flight Centre 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."