COVID-19 slashes Helloworld TTV by 88%.
Helloworld Travel Limited has just released its results for the six months to 31 December 2020, reflecting the heavy impact of the coronavirus pandemic on the travel sector.
TTV was just $433 million, down 87.8%, while the overall pre-tax result was a loss of $21.5 million. Revenue decreased by 85% to $29.6 million.
The company said the drop in income was partly offset by a significant decrease in expenses, including a 71% reduction in employee costs, a 92% reduction in advertising expenses and a 99% reduction in selling expenses.
The report confirmed the acquisition of an additional 60% of Inspire Travel Management for $1 on 31 October 2020, as well as the full acquisition of Cruiseco for $500,000 on 30 November 2020.
“Helloworld Travel has been successful in keeping cash burn below $2 million per month in the first half, and maintains a positive cash position that will ensure the Group can continue to operate at current levels beyond the next 12 months,” the update noted.
Helloworld has also granted 800,000 free shares to a number of staff, none of whom are Directors, and all of whom have been working reduced days for a sustained period since March 2020.
The company said it expects business to remain at about 15-20% of previous levels until mid-2021, with any further improvement dependent on consistently open state borders and the opening of some trans-Tasman and South Pacific travel bubbles.
“Medium term, pent-up demand for travel is extremely strong and when this pandemic is finally over, we anticipate travel will ramp up rapidly, with significant growth in 2022, 2023 and 2024,” the company said.
“Demand for travel services from both retail leisure agents and corporate travel management companies will soar in a world where professional and personalised travel advice and management will be critical to travellers’ sense of security and comfort.”
More details in today’s issue of Travel Daily.