Helloworld result hit by write-offs, restructuring.
Helloworld has just released its figures for the year to 30 Jun, reflecting declines in the group’s TTV, revenue and profit as it recognised losses from the sale of the ATS Pacific inbound business to AOT, the large “non-cash goodwill impairment” announced two weeks ago and the cost of its business transformation.
CEO Elizabeth Gaines said the outcome was in line with expectations during a period when the group has been engaged in implementing its transformation plan.
Adjusted EBITDAI was $40.6m, down 25% on the previous year, while TTV declined 6% to $4.8 billion. Revenue was down 12% to $291.7m and the overall pre-tax loss was $61.2m – or the equivalent of 14.38 cents per share.
Gaines said the board was “very pleased with the progress the Company has made in transforming the business over the past 12 months.
“The most critical phase of the change is now completed and we are focused on growing helloworld’s brand presence in the Australian market,” she said.
The group’s network size shrunk about 7% in the six months from Jan-Jun 2014, while the wholesale division’s net revenue dropped 15% to $88.6 million.
The Travel Management segment traded profitably, with an adjusted EBITDAI of $500,000 on $566m in TTV, down 7% mainly due to reduced corporate customer volumes.
Helloworld has announced an on-market share buy-back program of up to 2.5% of the company’s issued share capital.
In terms of the outlook, Gaines said following the successful implementation of the helloworld brand and digital offering “helloworld expects to fully participate in the forecast growth in travel in Australia,” with “targeted consumer marketing and campaigns aimed at driving increased customer traffic to our network of franchisees and members supported by a strong digital offering.”
The company has this month launched a helloworld.com.au Android mobile app, with an iOS version expected to be available in September.
“The focused, consolidated helloworld network will provide a strong platform for future growth in a multichannel environment,” Gaines concluded.
More information in today’s Travel Daily.