Corporate Travel (ASX: CTD) share price lifts on FY21 earnings

Here’s how Corporate Travel performed through the financial year just been.
The post Corporate Travel (ASX: CTD) share price lifts on FY21 earnings appeared first on The Motley Fool Australia. –

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.

The post Corporate Travel (ASX: CTD) share price lifts on FY21 earnings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Corporate Travel Management right now?

Before you consider Corporate Travel Management, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Corporate Travel Management wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How did the Corporate Travel (ASX:CTD) share price respond last earnings season?
Why the Corporate Travel Management (ASX:CTD) share price is outperforming
Are you a ‘Catch and Release’ investor?

Fund manager sees Webjet (ASX:WEB) share price as ‘golden’ opportunity

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!