Helloworld reports 6.1% increase in TTV to $3.2 billion.
Helloworld Travel Limited has just released its financial results for the six months to 31 December 2018, with the acquisitions of Magellan Travel Group, Asia Escape Holidays and Skiddoo (Flight Systems Group) driving a 6.1% increase in Total Transaction Value.
Basic earnings increased 2.8% to 18.2c per share, with shareholders to receive an 8c fully franked interim dividend. Pre-tax profit was $31.5 million for the period, up 4.2%.
Revenue increased 7.7% to $182.2 million, with the growth due to the acquisitions partly offset by a reduction in company owned stores. Underlying revenue growth in the Australian operations was the result of “better contracting outcomes, the addition of new retail agent members and new corporate account wins”.
Helloworld also noted its TTV growth was “partially offset by the rationalisation of unprofitable TTV from certain overseas online travel agents (OTAs) as the business continues its focus on profitable revenue growth initiatives”.
Operating costs increased 8.4% to $141.2 million, including an increase in advertising and marketing expenditure due to the Helloworld TV show on Channel Nine, and the “platinum” strategic partnership with News Corporation.
The Helloworld Travel retail network grew to 2,233 members as at 31 December 2018, a net increase of 10 members during the six month period.
In the second half of FY19 Helloworld Travel is “focused on driving the business forward through profitable revenue growth, new revenue initiatives, maintaining cost control and extracting further efficiencies from its investment in technology developments, enhanced travel platforms, improved product offerings and increasing brand recognition,” the company said.
More details in today’s issue of Travel Daily.