Travel management company CTM has reported a 6% drop in revenue for the first half of its 2025 financial year, which ended on December 31, 2024. The company’s revenue totaled AU$342.8 million (€208.7 million), down from AU$364.2 million in the same period last year. Despite this decline, CTM expects “strong growth” in Europe during the second half of the year.
The Australia-based company also saw a 23% year-on-year decrease in underlying EBITDA, which stood at AU$77.4 million. The decline was attributed to a significant drop in ticket prices in Asia, following an increase in airline capacity in the region.
In Europe, CTM reported a sharp decline in half-year revenue, falling to AU$56.5 million from AU$98.5 million in H1 2024. However, the company explained that the European business was undergoing a transitional phase, which involved winding down a one-off, war-related project from FY24. Underlying EBITDA for the region stood at AU$21.8 million.
The company’s European revenue growth was also affected by a reduction in UK Government travel spending during 2024. However, CTM is optimistic about the future, noting that it is now the sole provider of Lot 1 travel services for the UK Government, a contract that was previously managed by a panel of three travel management companies (TMCs).
CTM explained that when it secured the UK government contract, it was uncertain how much it would impact the business, especially considering the reduction in government travel spend. However, the company now believes that this shift will positively affect the volume and scale of services it provides in the future.
Looking ahead, CTM expects further growth in Europe in the second half of the year, following a record amount of corporate business wins in the region. The company reported that it retained 97% of its existing clients during H1 2025 and secured new business worth AU$600 million in total transaction value (TTV) as of December 31, 2024. By February 14, 2025, new business in TTV had risen to AU$880 million, with Europe and North America being the largest contributors. CTM has set a full-year target of AU$1.0 billion in new business.
Jamie Pherous, CTM’s Managing Director, commented: “Our largest regions, North America and Australia and New Zealand, are leading the way. Europe is now positioned for a strong finish to the year as we onboard new corporate clients.”
In other regions, CTM’s operations in Australia and New Zealand reported revenue of AU$96.1 million and underlying EBITDA of AU$28.5 million, reflecting increases of 18% and 53%, respectively. In North America, the company posted revenue of AU$159.9 million and underlying EBITDA of AU$30.5 million, marking increases of 6% and 49%, respectively. These results were driven by the rapid adoption of CTM’s Lightning Online Booking Tool (OBT) among new clients.
However, in Asia, CTM saw a 7% decline in revenue, which dropped to AU$30.1 million. Underlying EBITDA also fell by 15% to AU$7.7 million. Despite this, CTM noted that its customer base in the region is expanding, particularly in Hong Kong and Singapore.
Looking ahead, CTM remains optimistic about its outlook for the remainder of 2025. The company aims for a 10% revenue growth in FY2026. Its EBITDA margin in Europe for the full year in 2025 is expected to stay strong at around 43%, although it will be slightly lower than initially projected. This is due to a reduction in activity during the transition period, as the company retains approximately 80 staff.
CTM’s positive outlook reflects confidence in its ability to capitalize on new opportunities, particularly in Europe and North America, in the coming months.
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