Corporate Travel Management (CTM, No. 11 on Travel Weekly's 2017 Power List
) will continue to make more acquisitions, according to founder and managing director Jamie Pherous, who called them "a key part of our strategy.
Pherous was speaking during CTM's fiscal year 2017 financial earnings call, when the company reported a 23% increase in revenue and other income to $325.9 million AUD (about $257.7 million) and a 43% increase in EBITDA (earnings before interest, tax, depreciation and amortization) to $98.6 million AUD (about $78 million).
According to Pherous, the majority of CTM's growth was organic, and its highest regional growth was in North America and Europe. In North America specifically, revenue grew 64% year over year. CTM said the integration of international acquisitions helped grow the company's EBITDA.
In recent years, CTM has been focused on acquisitions, most recently acquiring U.K.-based Redfern Travel and Tasmanian-based Andrew Jones Travel
at the end of 2016.
It has also been bolstering its presence in North America: In December 2015, it acquired California-based Montrose Travel
, and in April 2016, it acquired Boston-based Travizon Travel
. CTM first entered the U.S. market in 2012, and has made a handful of acquisitions since then in addition to Montrose and Travizon.
CTM, based in Australia, started its international acquisitions in 2010.
"We have said the same thing since 2010: We do not have a scattergun approach, and our strategy has been considered from the very first day," he said. "And the key point is, we only acquire where it's going to add a geographic, scale or a niche advantage to our business, and our global network is client demand-led."
The company walks away from the "vast majority" of potential acquisitions, according to Pherous, who said, "It's our selection that has been so successful."
While Pherous declined to comment on the timing of future acquisitions, he said CTM is on the lookout for travel companies doing about $300 million to $1 billion in annual sales.