Corporate Travel Management keeps profits up despite tough year

Corporate Travel Management (ASX: CTD) reported full-year 2013 earnings today, pushing up its top and bottom lines in spite of a tough climate for travel services providers. On the top line, the company reported $78.8 million in revenue, 21% higher than 2012’s number. Moving further down the financial chain, underlying EBITDA mirrored revenue gains with 20% hike to $21 million.

But for investors, the picking was slightly slimmer. Underlying EPS clocked in at $0.173, just 11% above 2012’s earnings. In a statement today, Managing Director Jamie Pherous still seemed happy with his company’s efforts. “Our team successfully executed on the key business drivers we can control, allowing us to achieve an underlying EBITDA of $21 million, in line with our upgraded guidance, despite a softening in the Australian economy and lower average ticket prices experienced in the second half of FY13.”

While the company’s Australia and New Zealand EBITDA growth clocked in at 10.3%, its North America growth soared 96% due to the introduction of new business models and processes. With profits up, the board declared a final $0.065 per share dividend, putting total 2013 distributions at $0.105.

Looking ahead, the company expects slightly subdued EBITDA growth between 15% and 20%. Corporate Travel will continue to focus on technology development and client services as it harnesses newfound scale from its May 2013 Travelcorp Acquisition in North America.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter  @TMFJLo .

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