Global Business Travel Q4 Revenues Gain From Travel Boost: Details

American Express Global Business Travel, which is operated by Global Business Travel Group Inc GBTG, (Amex GBT) reported fourth-quarter FY23 sales growth of 4.2% year-on-year to $549 million, beating the analyst consensus estimate of $541.17 million.

The revenue increase is primarily due to growth in Total Transaction Value driven by continued growth in business travel and growth in Product & Professional Services revenue.

The total operating expenses for the quarter declined 4% to $546 million.

Net loss for the quarter narrowed to $(46) million, primarily due to the increase in operating income and favorable change in fair value of earnout derivative liabilities, partially offset by increased interest expense.

Adjusted EBITDA jumped 83% to $80 million, and the adjusted EBITDA margin improved 6 percentage points to 15%.

Net cash provided by operating activities for the quarter totaled $58 million, with a free cash flow of $32 million. Net debt as of December 31 totaled $886 million.

“We expect 2024 will be another year of share gains, strong growth in profits and cash flow and continued margin expansion,” said Amex GBT’s Chief Executive Officer Paul Abbott.

Outlook: The company sees FY24 revenue growth of 6% – 9% to $2.43 billion – $2.50 billion against an estimate of $2.51 billion.

It expects FY24 adjusted EBITDA of $450 million – $500 million with an adjusted EBITDA margin of 18% – 20%. It sees FY24 free cash flow of more than $100 million.

Price Action: GBTG shares closed lower by 1.22% at $5.601 on the last check Tuesday.