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Healthy half-year result from Helloworld

February 19, 2019 Headline News No Comments Email Email

Releasing its half-year results to 31 December 2018 yesterday, Helloworld outlined key achievements that it said would drive profitable future growth.

Helloworld Travel Limited achieved Total Transaction Value (TTV) growth of 6.1% to AUD 3.2 billion, underpinned by business expansion.

Revenue was AUD 182.2 million, an increase of AUD 13.1 million (7.7%), led by six-month impact of acquisitions dyruing financial year 2018 and improving revenue margins.

Earnings before interest expense, tax, depreciation and amortisation (EBITDA) reached AUD 42.0 million, an increase of AUD 2.2 million (5.6%) compared with the prior corresponding period. Basic earnings of 18.2 cents per share represented an increase of 0.5 cents per share (2.8%) compared with the last corresponding period. The company declared an interim dividend of 8 cents a share, fully franked.

Helloworld said its half-year focus on business expansion included the following key achievements, “which will drive profitable growth in future financial years”:

  • Integration of prior year business acquisitions undertaken including the Magellan Travel Group, Flight Systems Group and Asia Escape Holidays, as well as the current year acquisition of the Show Group business that complements the existing corporate businesses.
  • Capital expenditure increase on enhanced technology solutions of the future, for both the leisure and corporate travel customers.
  • Growth in the Trans-Tasman retail network to 2233 members as at 31 December 2018.
  • New corporate account tender wins in the current half-year including the South Australian Government.
  • New marketing initiatives highlighted by the launch of the Helloworld TV show and first in market platinum media partnership with News Corporation.
  • Completing the roll out of the Helloworld Travel rebranding initiative for the Australian retail business, the New Zealand rebrand to be undertaken in the second half of FY19.

The company noted: “The underlying revenue growth in the Australia segment was a result of better contracting outcomes, the addition of new retail agent members and new corporate account wins. This underlying revenue increase was offset by the lower second quarter trading of the Australian inbound business led by the timing of inbound customers travel and some movements in client requirements.

“In addition, the New Zealand and Rest of World segments revenue reduced as Helloworld Travel continues to rationalise these businesses for improved future profitability. Revenue margin increased by 0.1% to 5.8% led by improved contracting outcomes in the retail divisions and higher margins in the Air Tickets business due to the continued focus on profitable revenue streams, partially offset by a change in business unit mix and product mix in the inbound and wholesale businesses.”

Edited by Peter Needham

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