Helloworld result “consistent with expectations”.
Helloworld has just reported its results for the six months to 31 December, with ceo Elizabeth Gaines saying the outcome reflected the group’s consolidated retail network, its investment in consumer brand marketing and the cost of establishing the helloworld.com.au digital platform.
TTV was down 9% to $2.307 billion, while revenue declined 8% to $139.5 million. The “Adjusted EBITDAI” figure used by the Helloworld board to assess the company’s financial performane was $10.6 milion, down 44% on the prior corresponding period, and the company reported an overall loss before tax of $200,000 – a 95% improvement on the $3.9m loss for the first half of 2013/14.
Gaines said the company was continuing to deliver an “enhanced valued proposition” to its network of high calibre bricks and mortar franchisees and members.
“We are delivering on our priorities of engaging with our network of agents and preferred suppliers, driving opportunities through investment in technology, delivering successful and targeted marketing, growing our brand awareness, refreshing our agents’ stores and continuing to roll out our Ambassador store initiative,” she said.
The retail segment, which comprises the agency network and the helloworld.com.au online business, generated TTV of $1.7 billion, with revenue down 7% reflecting the reduced size of the Helloworld retail network which reduced in size by 8% during the 2014 calendar year. Gaines said the segement had also been impacted by “improved agent incentive payments” as well as the investment in consumer marketing, plus the $2.3 million cost of establishing helloworld.com.au.
The travel management segment was profitable, with expenses down $2.2 million and TTV in line with the previous corresponding period.
Wholesale, comprising Qantas/Viva! Holidays, Insider Journeys (previously Travel Indochina) and wholesale operations in the US, generated TTV of $300.9 million and reported a $3.8 million adjusted EBITDAI.
The company is on track to deliver a pre-tax profit for the full financial year, Gaines said.
More information in today’s issue of Travel Daily.