helloworld has successfully ticked a number of items off its goals list last year, including the group’s aspiration to create a network of high-calibre agencies.
While providing an overview of the business to investors this week, Chief Executive Elizabeth Gaines said for the half year ending 31 December 2014 the company has delivered significant improvements, particularly in future plans and finances.
“We are delivering on our priorities of engaging with our network of agents and preferred suppliers, driving opportunities through investment in technology, delivering successful and targeted marketing, growing our brand awareness, refreshing agents’ stores and continuing to roll-out our Ambassador store initiative.”
Elizabeth Gaines, helloworld Chief Executive
During the first six months of the financial year, helloworld also saw a 95 percent improvement in its loss before tax from $3.9 million during the six months to December 2013 to $200,000.
The increase came despite total transaction value over the same period declining nine percent to $2.3 billion and revenue dropping eight percent to $139.5 million.
Ms Gaines said results were consistent with expectations and reflects the investment in consumer brand marketing and the cost of establishing a digital platform.
Operating costs for the first half of the financial year sat at $128.8 million, which reduced by three percent from $3.7 million year-on-year.
Looking ahead, helloworld’s boss said the company will focus on growing its brand presence in the Australian market and build on increased profitability of the wholesale and travel management segments.
The group is expecting to deliver profits at the end of the financial year through continued business evaluation. Image from @jessicareedman
For the full 2014/15 financial year, helloworld says it is on track to deliver an adjusted earning before interest, tax, depreciation and amortisation (EBITDA) of $25-$30 million.
The group is also expecting a profit before tax, which Ms Gaines says will be achieved by continued evaluation of different distribution channels and overseas trends for future opportunities.
“We also remain focused on achieving growth through continued investment in targeted consumer marketing and campaigns aimed at increasing customer traffic to our network for franchises and members, supported by a strong digital offering.”
Elizabeth Gaines, helloworld Chief Executive
Late last year, the group’s corporate business received a boost when the Australian Government appointed its wholly-owned subsidiary, QBT. Read on
The four-year appointment commenced in December, with Australian Government agencies transitioning from their existing agreements to the new structure over the next six months.