Pre-tax profit of $31 million, up 800% on the previous year.
Helloworld has just released its figures for the year to 30 June 2017, with every part of the business showing improved performance. Total Transaction Value (TTV) increased 3.1% to $5.87 billion, while revenue was up 8.6% to $326.4 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 118% to $55.2 million; profit before tax increased eight-fold to $31 million and after-tax profit of $21.5 million was more than ten times the figure in 2015/16. The company declared an 8c per share final dividend, bringing total dividends for the year to 14c per share.
“During FY17, the Group achieved a strong business performance, growing revenue and significantly reducing its cost base while integrating the Helloworld Travel and AOT Group businesses,” the company said.
“Our results in Australia reflect strong improvement in margins, productivity and right sizing of the cost base,” a statement added, with the company over-delivering on previously identified merger synergies and cost reduction initiatives.
Other key achievements included major account wins for QBT and AOT Hotels, as well as a significant turnaround in the performance of the New Zealand operations. However TTV in the Rest of World segment declined 8.9% to $114.5 million and revenue fell 6%, reflecting a refocusing of the distribution method used in the Insider Journeys business and adverse foreign exchange movements.
Going forward the outlook is seen as positive, with business fundamentals heading in the right direction in all key segments and a forecast EBITDA for FY18 of $63m-$67m.
More details in today’s issue of Travel Daily.