The Corporate Travel Management Ltd (ASX: CTD) share price has lifted 0.21% this morning following the release of the ASX 200 travel solutions provider's financial year 2021 (FY21) results.
At the time of writing, the Corporate Travel share price is trading at $21.15.
Corporate Travel share price falls despite second half gains
Here's what Corporate Travel reported this morning:
- Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $7.2 million loss
- Around $174 million of revenue
- Statutory net loss after tax of around $55 million. For comparison, FY20 saw the company report a net loss after tax of approximately $8 million
- Underlying EBITDA for the second half of FY21 was $8.1 million
- No dividend paid
The company advised that 48% of the company's FY21 income came from the Americas, 21% from Europe, 22% from Australia and New Zealand, and 9% from Asia.
Additionally, all of its operating regions earned a profit in the final quarter of FY21.
The company now believes its most exposed to regions with strong COVID-19 vaccination rates.
Corporate Travel finished the period with $99 million in cash and no debt
What happened in FY21 for Corporate Travel?
Here's the key news that drove the Corporate Travel share price in FY21.
In September, the company announced it acquired Travel & Transport. It did so after completing a $375 million capital raise.
The company states that its now a "significantly larger" business than it was before COVID-19 hit, mainly due to its major acquisition.
In fact, Corporate Travel's managing director Jamie Pherous said the it was estimated to be the fourth-largest global travel management company in the world.
What did management say?
Pherous commented on the earnings driving the company's share price today. He said:
We returned to positive underlying EBITDA in the second half because of a rapid turnaround in fourth quarter activity from North America and Europe. Significant progress in administering vaccines and reopening the economy in these regions gives us reason to be optimistic about FY22.
July has delivered a record revenue result post-COVID. The integration of Travel & Transport is progressing well and has helped us to capitalise on the momentum in North America and grow our exposure to the world's largest travel market.
What's next for Corporate Travel?
Corporate Travel hasn't given guidance for FY22. It stated the uncertainty of government decisions made in reaction to COVID-19 disallowed it to estimate its future earnings.
However, here's what might drive the Corporate Travel share price in the current financial year:
The company expects its underlying EBITDA to grow in the first quarter, though it noted quarter one is generally its softest. It also expects its growth will continue through the first half, as Transatlantic and intra-Europe travel is expected to open.
Finally, Corporate Travel hopes vaccinations will allow for a predictable and sustainably strong Australian domestic environment in the second half of FY22.
The company is again looking at unnamed acquisition opportunities.
Corporate Travel share price snapshot
The Corporate Travel share price has gained 23% year to date. It has also increased almost 79% since this time last year.
At the time of writing, the company has a market capitalisation of $2.9 billion.
