Helloworld Travel Limited (HLO) has announced its financial results for the year ending 30 June 2018 with a profit after tax of AU$32m, up 48.1% ($10.4m) on the previous year.
The Melbourne based Travel Group saw turnover (TTV) for the year increased 3.5% to $6.1 billion despite the impact of lower airfares affecting lower margins for the industry as a whole.
The group say that an increase in cruise, corporate and air business alongside improved contracting outcomes were crucial factors in their improved turnover result for the year.
A final dividend for shareholders, many of which are now contented Helloworld Travel members too was declared at 11.0 cents per share, bringing the total fully franked dividends for FY18 to 19.0 cents per share, an increase of 28.6% on the previous year.
Say hello to a world of new members..
Going against the market trend of retail doors closing, it has instead, been a significant year of retail member growth for the Helloworld Travel family of brands.
The acquisition of the Magellan Travel Group in March, as well as new members for mobile agent group MTA Travel, My Travel Group, and Helloworld Travel itself, has seen Helloworld Travel Limited acquire an additional 208 new members in the last 12 months, up 10.3% to a total of 2,223 members as of 30 June 2018.
The impressive financial year also saw the group purchase Asia Escape Holidays and Flight Systems as well as re-structure Asia specialists Insider Journeys and upgrade online platforms, readyrooms.com and ResWorld.
Helloworld Travel Limited say that improved re-brand awareness post-roll-out of ‘Helloworld Travel’, a focus on growing revenue streams, technology and managing a lower cost base has also been a contributing factor to the groups increased profitability.
This is the third consecutive year result that net profit after tax and earnings per share have increased for HLO as the group look to further growth across the business for the year ahead.
The group predicts domestic and international travel to continue to grow in the next 12 months with a positive outbound and inbound effect in the markets they operate of Australia, New Zealand, Fiji, the USA, South East Asia, India and The UK/Europe.
Helloworld has provided earnings guidance for FY19 that its EBITDA (earnings before interest, tax, depreciation and amortisation) is estimated to be in the range of $76m to $80m.
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