Polk Majestic Acquisition May Be Just The First In U.S. For Australia's CTM

Australia's Corporate Travel Management raised forward earnings expectations and reported 36.5 percent higher total transaction value and 31 percent revenue growth for the six-month period ending in December, thanks partly to its July acquisition of R&A Travel, better known as Polk Majestic Group.

Excluding acquisitions, CTM's TTV grew 14.3 percent in the period.

CTM bought the Denver-based travel management company, which remains an affiliate of Tzell Travel, for $9.5 million, including $5.4 million in cash and shares plus $4.1 million contingent on reaching hurdles as of Aug. 31, 2013 and Aug. 31, 2014.

Publicly traded in Australia, CTM revealed the details in its half-year financial report. The company is aiming for "improved service for Australia-based accounts with travel originating from the United States [and] access to multinational travel management tenders controlled from the U.S." The company indicated it has more than 130 Australian accounts with "significant" travel spending in the United States.

"Other North American acquisition opportunities are being explored using CTM's acquisition discipline and selection criteria to take advantage of economic green shoots in USA and the strong Australian dollar," according to company information.

CTM's total transaction value (value of travel sold) in the six-month period ending December 31 reached A$431 million (US$447 million). Revenue was A$38.7 million (US$40 million) and profit was A$5.7 million (US$5.9 million), up from A$4.7 million (US$4.8 million) a year earlier.

CTM a year ago raised A$7 million (US$7.3 million) in funding to support the U.S. expansion. The company indicated as key priorities growing organically, exploring acquisition opportunities, growing in the United States and driving higher revenue per full-time equivalent.