“Perfect storm” of COVID-19 hits Helloworld.
Helloworld Travel Limited has just released its results for the year to 30 June, with a statutory after-tax loss of $70 million. The figures were impacted by $67 million in non-cash impairments of assets whose values are “not supported by anticipated medium-term trading conditions at present”.
Full year Total Transaction Value of just over $5 billion was down 23.1%, while revenue was $282 million, 21% lower than the previous corresponding period, with the results hit by COVID-19 which caused “unprecedented impacts to travel and tourism as a result of border closures, mandatory quarantine periods and restrictions on domestic and international travel”.
Helloworld said it responded quickly to this “perfect storm” and was able to reduce its monthly net operating cash outflows to about $2 million excluding one-off costs from April 2020.
“The company has carefully managed its expenses and worked tirelessly to process cancellations and return monies and/or travel credits both via agencies and directly from suppliers around the world,” according to a statement.
Over the last three months corporate operations have shown signs of recovery, and while revenue generation has been much slower in leisure the company is seeing some income from intra-state travel particularly in WA, Queensland and NSW.
Full or partial refunds worth more than $800 million have been paid out, with ticket refunds down to under seven weeks and wholesale & cruise refunds “under control,” the company said.
During the year the company saw strong increases in its home-based agent segment, which drove the overall Helloworld retail network to 2,496 members across Australia and New Zealand. In Australia 21 agencies have closed, and a further 23 have indicated they will put their business into hibernation until travel demand returns.
CEO Andrew Burnes said when COVID-19 ends he believes people “will not hesitate to go and see and do the things they have always wanted to do, in the full knowledge that circumstances can change very rapidly”.
“We are confident that when they can travel, our customers will need the help of their travel professional more than ever,” he added.
More details in tomorrow’s issue of Travel Daily.