Helloworld Travel Limited (HLO) has reported significant growth in FY24, driven mostly by a focus on profitable revenue streams, cost control and the acquisition of Express Travel Group (ETG).
Reflecting the growth of travel overall, total transaction value (TTV) for the group increased by 62.5% to $4.2 billion, with Australian and New Zealand segments benefiting from the ETG acquisition by 60.6% and 79.4% (in transactional value) respectively.
Total HLO revenue also grew by 37.5% to $228.2 million, though the revenue margin declined slightly, from 6.3% to 5.2%, due to ETG’s lower margins.
Profit picking up
Operating costs rose as the group invested in long-term growth initiatives. Despite this, EBITDA (underlying profit) grew 52.9% to $67.5 million, and net profit after tax increased 60.2% to $30.7 million, as geographic segments across the board remained profitable.
Encouragingly, equity investments contributed $4.9 million – a 145.2% yearly increase – driven by strong performances from MTA – Mobile Travel Agents (50% owned by Helloworld) and Phil Hoffmann Travel (40% owned by Helloworld from August 2023).
Record demand
In its report, HLO flagged how international leisure travel from Australia and New Zealand often involves complex itineraries with multiple destinations, increasing the desire for professional travel services – and that demand has never been greater.
According to the group, it continues to meet this demand with a network of over 10,000 travel advisors operating in a wide range of locations across Australia and NZ – from regional areas to major shopping centres.
“From Broken Hill to Blacktown, Colac to Camperdown, Grey Lynn to Gore and everywhere in between there is a member of the Helloworld retail and broker networks to meet and exceed the service demands of travellers,” Helloworld stated in its FY24 report.
Investments in technology and innovation continued throughout FY24 for the group as it looked to enhance network functionality and efficiency.
Key developments included the expansion of the Resworld retail mid-office solution, the Air Tickets booking system and the ReadyRooms wholesale hotel solution.
Looking ahead
HLO says the forecast for Helloworld looks positive, as travel numbers at the end of FY24 approached pre-pandemic levels, with Australia at 90-100% and New Zealand at 85-95% of FY19 levels.
To capitalise on this demand, the company plans to continue to leverage its diversified business model for sustainable growth.
“The demand and importance of professional travel advisors continues to go from strength-to-strength in a market that values the expert services of a professional to enhance travel arrangements and holiday experiences,” Helloworld Travel CEO and Managing Director Andrew Burnes AO said.
“Helloworld is committed to the long-term future of travel agents and brokers and can see first-hand that the demand for these services shows no signs of lessening.
“We are looking forward to continuing the successful journey for the business in the years ahead.”
According to HLO, the company’s agency and broker numbers across Australia and NZ now total more than 2,700, including over 530 franchisees, some 1,500-plus agencies in its buying groups and over 650 members of its broker business networks.
