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Helloworld half-year result ‘solid foundation for growth’

February 20, 2018 Headline News No Comments Email Email

Helloworld Travel Limited has announced a strong performance for the half-year ended 31 December 2017 which it says is in line with the 2018 full-year market guidance and business expectations.

In a statement issued yesterday, the company said the result showed the business has a solid foundation for sustainable long-term growth and is well positioned to continue the positive momentum into the second half of financial year 2018 and beyond.

The Helloworld Travel retail network comprised 2065 members across Australia and New Zealand as at 31 December 2017, an increase of 50 members since 30 June 2017.

The number of members has grown in both Australia and New Zealand mainly due to the increase in the independent network, My Travel Group.

Total Transaction Value (TTV) growth continues. The growth in ticketing volumes was partially offset by continued lower airfare prices.


  • TTV growth of 2.7% to AUD 2.968 billion.
  • Earnings before interest expense, tax, depreciation and amortisation (EBITDA) of AUD 35.5 million, an increase of AUD 5.5 million (18.2%) compared with prior comparative period.
  • Profit before tax of AUD 26.0 million, an increase of AUD 7.3 million (39.2%) compared with prior comparative period.
  • Basic earnings of 15.4 cents per share, an increase of 3.9 cents per share (33.9%) compared with prior comparative period.
  • Interim dividend declared of 7.0 cents per share, an increase of 16.7% compared with prior comparative period.
  • Positive momentum continues, with strong financial and operating performance including the following key achievements:

*  Growth in TTV, underpinned by ticketing volume growth.

* Delivering strong EBITDA and net profit growth, in line with 2018 full year market guidance and business expectations.

*  Improved underlying operating cash flow and a stable balance sheet.

* Strengthening and diversifying the retail network, including the acquisition of the Magellan Travel Group, to be completed by the end of February 2018, and expansion of the New Zealand member network.

* Delivering improved benefits for the member and agent networks, supported by continual growth in our brand recognition.

* Focusing investment on people and technology to enhance leisure and corporate customer travel solutions.


Helloworld Travel Limited (ASX: HLO) results for the half year ended 31 December 2017 (1H18)

31-Dec-17 31-Dec-16 Change
$m’s $m’s %
TTV 2,967.9 2,890.1 2.7%
Revenue 164.9 171.2 (3.7%)
EBITDA 35.5 30.1 18.2%
Profit before tax 26.0 18.7 39.2%
Profit after tax 18.1 12.9 40.0%


Cents per Cents per Change
Share Share %
Basic earnings 15.4 11.5 33.9%
Diluted earnings 15.3 11.5 33.0%
Prior year final dividend, paid in current period 8.0 2.0 300%
Interim dividend 7.0 6.0 16.7%

Dollar and percentage movements have been calculated from the financial statements which are rounded to thousands.

Helloworld said its TTV growth of 2.7% was underpinned by strong ticket volume growth, partially offset by lower airfare prices caused by airline discounting in Australia and New Zealand.

Revenue was AUD 164.9 million, a decrease of 3.7% mainly due to the prior comparative period including revenue from the disposed air representation business, disposed company owned stores and the restructured Insider Journeys business.

Excluding these factors, revenue decreased by AUD 1.6 million or 1% “reflecting the continued lower airfare prices and mix change across business units and products”. Operating costs are significantly below the prior comparative period across all segments, mainly reflecting the continued focus on cost reductions initiatives to right size the cost base and reduced costs from disposed operations.

Helloworld Travel reported EBITDA of AUD 35.5 million, an increase of 18.2% or AUD 5.5 million from the prior comparative period. The profit after tax was AUD 18.1 million, an increase of 40.0% or AUD 5.2 million from the prior comparative period. As a result, earnings per share grew by 33.9% to 15.4 cents, which enabled the declaration of a higher interim dividend of 7 cents per share to shareholders, whilst still maintaining a strong balance sheet that can be used for future opportunities.

Helloworld said the increased customer awareness from the rebrand to Helloworld Travel continues in the Australia marker, with increasing brand recognition. “In addition, advertising and marketing spend is focused on unique product offerings and value proposition, generating improved financial returns. The Group continues to invest in key technology innovations to enhance, travel solutions for agents, franchise members, suppliers and customers.”

Edited by William Sykes

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