Irish travel tech company CarTrawler paid a €46.6 million dividend to its parent company last year as its profits rebounded strongly as a result of travel globally continuing to rebound post the pandemic and new business wins.
Latest accounts for Etrawler Unlimited Company, for the year to the end of September 2023, show that the dividend was paid to its immediate parent, ET Holdco, which is based in the Isle of Man.
CarTrawler has been majority owned by UK private-equity group TowerBrook Capital since May 2020 after it invested €100 million in the Irish business as it struggled to trade amid Covid lockdown restrictions on the travel trade globally. The rebound in its profits last year allowed it to pay dividends to shareholders.
CarTrawler makes software that is used by airlines and travel agents to connect to car-hire companies, providing the carriers with “substantial ancillary revenue opportunities”. The company has a network of more than 2,200 car rental and “mobility” suppliers in 150 countries while its airline partners include EasyJet, Norwegian Air Shuttle, Emirates and United Airlines. It also sells insurance products.
The accounts show that CarTrawler’s revenue rose by 5 per cent to €173.8 million last year, with car reservation volumes increasing 15 per cent year on year as a result of “continued strong consumer demand and new business wins”. When costs and exceptional items are factored in, the company’s operating profit more than doubled to €8.3 million.
An increase of €3.6 million in its income from bank deposits helped to bolster its pretax profit to €11.6 million, up from a surplus of €2.8 million a year earlier. The uplift was due to the increase in interest rates and associated income generated from its cash balances.
[ CarTrawler backer has ‘no plans to sell’ as firm returns to profitOpens in new window ]
CarTrawler said it was on track to deliver further growth and a strong financial performance in 2024 and 2025 following 10 significant new contract signings in the past year including with the Air France-KLM Group, Wizz Air, Jet.com and Jet2holidays, and Luxury Escapes.
Commenting on its performance, CarTrawler’s chief executive Peter O’Donovan said: “The outlook for our business is the most positive it has ever been. The strength of our proposition is enabling us to deliver a record level of new business, with several new partners going live in the coming months. This is in addition to the 10 new partners already added the last year and in combination will drive further growth in our 2024 financial year.”
The accounts also note that post the year end the company established a revolving credit financing facility with a group of lenders, including AIB, granting a charge over the assets and shares of the company.
Based in Dundrum, CarTrawler employed 398 last year. The business was set up in 2004 by brothers Greg and Niall Turley.
