American Express Global Business Travel saw its revenue jump by 22% year-on-year in the second quarter of 2023 following the “normalisation” in travel volumes and “excellent” growth in the SME segment.
The company announced on Thursday (10 August) that revenue rose by 22% to $592 million in Q2 of 2023, compared with $486 million in the same quarter of 2022.
Amex GBT said that transactions rose by 12% year-on-year, while total transaction value (TTV) increased 13% to $7.34 billion in Q2. Net cash provided by operating activities totaled $46 million and Free Cash Flow exceeded projections to reach $19 million, which chief financial officer Karen Williams described as a “pivotal moment” in the company’s post-pandemic recovery.
The TMC, which has been increasingly targeting the SME business travel market, added that transactions through these smaller and mid-sized organizations also increased by 15% year-on-year.
Over the past 12 months, Amex GBT has won $2.3 billion in annual business from SMEs. As seen in the company’s Q1 report, approximately 30% of new SME client wins were from organizations whose travel had previously been “unmanaged”.
Paul Abbott, Amex GBT’s CEO, said: “We reported strong second-quarter 2023 results, including the highest quarterly revenue in our company’s history and strong Adjusted EBITDA growth.... Specifically, we delivered strong SME growth, including yet more traction in the unmanaged segment, and record SME new wins.”
Abbott added the pipeline for SME business “looks really strong” and that the unmanaged segment remains “an area of focus” for the TMC.
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