What a six months… Helloworld Travel Limited (HLO) has released its half-year financial results for FY24 – and it makes for some good reading for the group.
In the six months ending 31 December 2023, HLO achieved an underlying (EBITDA) profit of $34 million, which is more than twice the $15.6 million profit it reported for the same period the year before.
In H1, total transaction value (TTV) grew to $2.2 billion – an increase of nearly $1 billion ($994 million) over the previous year (equal to 82.3 per cent).
Meanwhile, total revenue grew to $112.3 million, which was more than 50 per cent higher than the $73.2 million reported in H1 FY23.
In FY23, HLO reported an underlying profit of $44.1 million, compared to its $10.6 million underlying loss in the prior year.
Looking ahead, Helloworld forecasts an underlying EBITDA of $64-$72 million for the full year FY24, subject to no adverse change in operating conditions.
Among the highlights of the half-year for HLO was the completion of the merging of Express Travel Group (ETG) which it says upped efficiency by combining technologies and operations and a 30.3 per cent underlying EBITDA to revenue margin “with improving efficiencies and high productivity”.
In an ASX statement, HLO says Australia and New Zealand continue to experience robust demand for leisure travel, alongside a growing need for travel agent services, both in the leisure and corporate sectors.
“The value of a travel agent as a trusted advisor and travel manager is well understood by travellers,” it states.
Strong retail demand
On the retail front, HLO says its businesses are thriving due to the strong demand for travel and the need for skilled travel professionals to handle planning, booking and travel management.
“We continue to invest in supporting our networks with marketing, superior commercial outcomes, extensive agent training and on-going systems developments,” HLO says.
According to the group, the Helloworld Travel Academy (launched in July 2022) has nearly 400 consultants currently undergoing or completing training in Australia and NZ, while its retail business serves over 2,400 members of travel agency and broker networks across Australasia.
More airline and cruise capacity will also continue into FY24 and beyond in response to ongoing strong traveller demand, both in Australia and globally, HLO states.
Elsewhere in the group, Viva Holidays marked 50 years of operations and received the National Tourism Industry Award (NTIA) for the Most Outstanding Wholesaler in 2023.
Advisors “trusted”
“These half year results are a demonstration of the strong demand for leisure travel that is continuing in Australia and New Zealand,” Helloworld Travel Limited CEO and Managing Director Andrew Burnes AO said.
“The need for professional travel services continues to expand and is more important than ever.
“The value of a travel agent as your ‘trusted advisor’ is understood by travellers and our networks are ideally suited to continue to service that growing need.
“The year ahead is looking very positive for continued travel growth, driven by increased capacity from airlines and cruise operators globally, and the superb service from our travel agents and brokers throughout Australia and New Zealand.”
Read our wrap of the 2023 Helloworld Frontliners Forum conference, where Karryon reported exclusively from the annual big bash.
Late last year, travel industry veteran Peter Douglas joined Helloworld as its new National Sales Manager.
Read our interview with Helloworld Travel Group General Manager – Consolidation Rohan Moss, whose journey in the Australian travel industry spans an impressive 40 years.
Go behind the scenes of a travel agency’s opening at Helloworld Travel Stanhope Gardens.
