More synergies from AOT merger identified.
Helloworld has just announced it is on target to exceed the original $7.6 million in synergies estimated in the Explanatory Memorandum for its merger with the AOT Group, with a total of $13.2 million in synergy savings now identified.
In an ASX update, Helloworld ceo Andrew Burnes said the company is “on track to achieve a significantly improved result in FY17 through a combination of tight cost control, margin growth and improved TTV”.
He said since the merger on 01 February Helloworld had “streamlined” its retail marketing division, ended the Orbitz agreement, closed out its defined benefit superannuation fund and added more than $100 million in TTV to its corporate division.
The company is also well advanced in consolidating its IT, administration, finance, database and other operating divisions, Burnes said.
Helloworld’s full year results will be released on 24 August 2016, with Burnes saying “we expect to see a very positive upward trend in earnings in FY17”.
More details in today’s issue of Travel Daily.