Company reports a “significant turnaround”.
Helloworld has just released its results for the six months to 31 December, with revenue up 23% and a profit before tax of $18.7 million for the period.
That’s a big turnaround from the previous corresponding result which was a loss of $1 million. Profit after tax was $12.9 million, up 880%, with other key indicators also all increasing. Revenue was $171.2 million, an increase of 23%, while total transaction value rose $55.9 million to $2.66 billion for the half.
The company said it achieved EBITDA growth in all business segments, while shared services costs have been restructured with “a strong focus on continual cost control”.
Retail franchise operations generated TTV of $2 billiion for the period, down 4.9% year on year. Revenue for this division declined 5.4% to $74.6 million, while operating costs were down 10% to $54.6 million. “Despite the challenges of falling airfare prices and strong competition, the retail franchise operations have performed well in the first half of the year,” Helloworld said, with total transaction numbers increasing, highlighting strong consumer demand.
Wholesale/inbound saw TTV increase 60.1% to $504 million, with divisional EBITDA before shared services of $20.3 million reflecting the addition of the AOT group and the improved operating performance of the enlarged business.
In the Travel Management division TTV rose 6.2% to $393 million, with revenue increasing due to the appointment of QBT as the provider of travel management services to PwC and the NT government.
The Helloworld board has resolved to pay an interim dividend of 6.0 cents per share. Looking forward, the company said the full year outlook is positive. “Revenue margins are improving and we expect to see some further margin improvement in the second half. Business fundamentals are heading in the right direction in all our key market segments with demand for our integrated service offering continuing to develop and grow,” the results statement concluded.
More details in today’s issue of Travel Daily.