Australian Travel Agency Group helloworld has reported an adjusted profit before tax of $6.9 million, amid winning the entire travel contract for the Australian Government.
The result represents a significant improvement on the previous financial years’ loss of $1.7m.
All up the Group achieved an adjusted earnings before interest, taxes, depreciation, amortisation and impairment (EBITDAI) of $27.5m, a result within the range of its previously-stated market guidance.
Total transaction value (TTV) for the group was $4.7 billion for the year and helloworld (ASX:HLO) said its results included an assessment of intangible assets such as goodwill on its balance sheet, which arose from a number of legacy transactions including the 2010 merger of Stella Travel Services and Jetset Travelworld.
The results include the ongoing investment in building the helloworld brand and the investment in helloworld.com.au.
#ExpertsInEverywhere pic.twitter.com/c3eWjhsDBL
— helloworld (@helloworldau) August 25, 2015
HLO’s operating expenses for FY15 are $251.8m compared to the prior comparative period of $251.1m which reflects its focus on cost containment which the group says provides them with the flexibility to invest in growth opportunities.
The travel management segment generated an adjusted EBITDAI of $5.3 million representing an increase of $4.7 million on the prior year. The travel management section was bolstered by the appointment of Helloworld’s QBT division to be the sole travel manager of the whole of Australian government travel contract.
HLO will receive the full-year benefit of that in the current financial year. Total transaction value attributable to the travel management segment increased by 6% to $600 million for the year ended 30 June 2015.
Operating expenses in the travel management segment also decreased by $1.1 million or 3% during the year as a result of restructuring initiatives and productivity improvements. The Travel Management segment has continued to invest in innovative technology in order to drive efficiency and automation through the business.
Commenting on the results, CEO Ms Elizabeth Gaines who will leave the business in December said, “We have continued to make strong progress in our strategy to future-proof our business to drive results for our shareholders, agents and customers. We are doing this through strategic investment in technology, training, product and profile to showcase our agents as the Experts in Everywhere and we are delivering on our vision of Creating the future of travel with each journey.”
“Strategic marketing investment has driven a tripling in brand awareness. helloworld’s prompted brand awareness continues to grow amongst travelling Australians with the latest research confirming a further significant boost to 34%, up from the November 2014 result of 26% and the May 2014 result of 10%. This significant and continual growth in brand awareness since the February 2014 launch of helloworld to Australian travellers is very pleasing.”
Elizabeth Gaines, CEO, helloworld
