Amex GBT sees "strong" quarter with major client wins

American Express Global Business Travel has seen transactions recover to 76% of 2019 levels in June, marking another “strong” quarter for the company.

During an earnings call today – its first as a publicly listed company – Amex GBT reports revenue for the quarter rose 217% year-over-year to $486 million, with $388 million listed as “travel revenue” and the remaining $98 million as “product and professional services revenue.”

Revenue recovery represents 64% of 2019 levels on a pro forma basis, with the company posting a vastly improved net loss of $2 million compared to a loss of $55 million reported for the same period in 2021.

CEO Paul Abbott attributes the revenue growth to the company’s November 2021 acquisition of Egencia, coupled with increased management fees, the recovery of post-pandemic travel and a rise in meetings demand.

Abbott also points to a number of new client wins over the last 12 months, including American multinational investment bank JPMorgan Chase, which together represent $4.2 billion in annual travel volume, based on 2019 spend. 

According to a report by BTN Europe sister publication The Beat (subscription required) Abbott says the TMC will “have the privilege of serving JPMorgan from the third quarter of this year.”

The development comes despite JPMorgan Chase's recent acquisition of travel agency operator Frosch, which also offers corporate travel management services. 

The TMC reports a 95% customer retention rate for the last 12 months, as well as steady recovery of corporate travel volume during the quarter. SME transaction recovery in the month of June 2022 reached 84% of 2019 levels, reportedly driven by stronger recovery and “new wins momentum.”

“Listing as a public company in the second quarter was a significant milestone and marked the beginning of the next phase of growth for Amex GBT,” Abbott says. “Our strong first half of 2022 and continued share gains give us the confidence to raise our full-year 2022 guidance once again.”

Adjusted earnings before interest, taxes, depreciation and amortization for the quarter came in at $47 million, up from negative $74 million in adjusted EBITDA in the same period last year. 

Full-year 2022 revenue guidance was raised to a range of $1.8 billion to $1.85 billion and full-year adjusted EBITDA guidance to a range of $90 million to $100 million.

The TMC expects the recovery in transactions to reach around 74% of 2019 levels for the year, which CFO Martine Gerow says represents a “steady but modest continued recovery in the second half,” according to The Beat’s report.

Abbott says markets like China, which haven’t yet opened to international travel, present “opportunities for transaction growth” despite ongoing challenges such as airline operational constraints, supply delays and macroeconomic factors.

* This article first appeared in BTN Europe.