Helloworld Travel Limited (HLO) has released its 2022 full-year financial results, reporting a remarkable $90million full-year profit after tax.
Citing ‘A tale of four quarters’ as the story of its comeback financial year, Helloworld generated $1.077 billion in TTV for all operations in FY22, which was up 140 per cent from the previous year.
Despite all Australian borders being open and an active trans-Tasman bubble underway on July 1, 2022, the company reported that quarter one was almost immediately impacted by the subsequent outbreaks of COVID-19 and countrywide lockdowns across Australia and New Zealand.
HLO said a brighter second quarter brought to an end an extended period of international border closures, allowing Australians to travel overseas and saw the sale of the company’s corporate travel management division to Corporate Travel Management Limited for $175 million.
A steady third quarter saw continued growth for Helloworld with the removal of the WA border restrictions and Australia reopening its borders to international visitors.
Closing the financial year, the ultimate quarter saw significant growth for HLO with a return to operational profitability.
The company also noted the start of the northern hemisphere summer, the first easter out of lockdown and relaxation of restrictions across the country saw forward bookings across all divisions grow.
The member network
HLO reported a total year-end reduction of 160 members, saying some of its multi-store agencies have also consolidated while others have moved to home-based agents or broker models.
As of 30 June 2022, Helloworld’s Australian and New Zealand network member status was: 2,064 compared to 2,168 in December 2021 and 2,224 in June 2021.
Helloworld said its retail networks have now stabilised, and the company would “continue to invest in supporting new and existing franchisees to return to shop fronts.”
The forward outlook
HLO is forecasting to also be back in black for 2023 with a pre-tax profit expected to be $22-$26 million, subject to no materially adverse impacts and the continued recovery from the pandemic.
Based on retail, wholesale and inbound booking intakes across the first six months of 2022, the company says it expects strong incoming tourism over the Southern hemisphere summer.
Speaking about the results in a statement to the ASX, Andrew Burnes, AO, Helloworld Travel Chief Executive Officer and Managing Director, said, “The last two years have been the most difficult for our industry, but despite this, our business stands ready for a strong rebound.
“We have a strong balance sheet, with no borrowing, cash reserves and substantial liquid assets. Our network of agencies has proven to be resilient and robust, despite the impact of COVID-19.
“We are looking forward to the year ahead and reconnecting with our customers and suppliers, in addition to delivering enhanced service offerings for our customers.”
HLO also declared a dividend of 10 cents per share, fully franked, to be paid on 23 September 2022.
For the full-year results, head to www2.asx.com.au/markets/company/HLO
