If you’re under the Helloworld Travel umbrella then you might want to grab a couple of party poppers and set up a celebratory lunch because your company is bringing in the big bucks.
The travel group’s head office released its 2016/17 financial results this morning with (what we imagine) a massive smile spread across their faces because earnings before tax climbed by $29.9 million to $55.2 million, and profit before tax shot up by $27.6 million compared to last year to $31 million.
It’s good news for the business and its members who spent the last year re-branding to Helloworld Travel, re-branding its corporate arm, re-focusing its marketing, making large investments in the Hunter Travel Group and MTA Travel, and expanding into cruise with the acquisition of four businesses.
During the 12 months, the group saw its total transaction value (TTV) make a huge leap to $5.9 billion, which contributed to a solid revenue growth of 8.6 percent to $326.4 million.
Well done Agents, you helped the business win Best Travel Agency Group at the NTIAs while also making some big sales!
Australia proved to be the biggest moneymaker for Helloworld Travel with TTV rising by 3.4 percent compared to the prior year to reach $4,908.8 million, while revenue increased 8.7 percent to $243 million.
Helloworld said the rise in Australian TTV came despite challenges presented by lower airfares, which the business fought through to achieve a 19 percent increase in ticketing volume.
Over in New Zealand, TTV increased by 3.4 percent to $849.0 million as revenue rose by 15.0 percent or $7.9 million to $60.5 million.
The Rest of World was the only segment to experience a decline in TTV of 8.9 percent, which Helloworld Travel attributed to “the refocus of the distribution method used in the Insider Journey’s business back to its traditional wholesale market” as well as “adverse foreign exchange translation movements, partially offset by the full year inclusion of the AOT businesses in Fiji”.
Looking ahead, Helloworld Travel said it will focus on growing its revenue and margins and continually extracting efficiencies in its operations and right sizing the cost base of the Group.
“Helloworld Travel remains focused on delivering for shareholders, Agents, partners and consumers with the objective to future proof its Agents and the business through technology, training, product and profile supported by the omni‐channel strategy.”
Helloworld Travel
Helloworld Travel expects to improve its current year performance in the year ended 30 June 2018 and is well positioned for sustainable long term growth. As a result, Helloworld Travel has provided earnings guidance for FY18 that its EBITDA will be in the range of $63.0 million to $67.0 million.
Other fun facts about Helloworld Travel’s 2016/17 financial year:
– The company now has 2,000 members across Australia & New Zealand
– It relaunched its website & rolled out Resworld consultant portal
– QBT in Australia secured major new account wins in the Northern Territory Government and PwC
– And the Global Stars received a fun and exciting makeover
