Helloworld Travel Limited (HLO) has reported $15.6 million profit before tax in its interim financial results for the first half of the 2022/23 financial year (1H 2023).
The group’s total transaction value (TTV) was $1.2 billion, which was up 209% ($390.4 million), and total revenue and other income was $73.1 million, up 151% ($29.1 million).
Regarding TTV per region, operations for Australia rose from $347 million to $1 billion (194%) and within New Zealand from $38.8 million to $177.8 million (359%), while Fijian operations grew 22 times higher on the year before.
HLO also reported a declared dividend of 2.0 cents per share to be paid on 23 March 2023.
In presenting its half-year highlights, HLO also flagged the creation of an integrated national sales team to drive business in preferred supplier sales and to support agent networks, enhancements in the mid-office system ‘Resworld’, ongoing development of wholesale and ticketing systems, and capital investment in new specialist trailers, vehicles and depot.
Demand outstripping supply
In its announcement on the ASX, HLO CEO Andrew Burnes said the results reflect “the strong demand from the travelling public, domestic and international borders returning to normal, Helloworld’s strong product offering and the incredible efforts of our agency networks to service their customer base”.
“Booking volumes are expected to continue to increase as prices normalise and capacity returns with airlines and tour operators continuing to onboard further resources to meet demand,” he stated.
On retail travel advisors specifically, Burnes said overall agent numbers continued to be an issue.
“The demand for the services of our network agents by those wishing to travel continues to outstrip agent availability,” he stated.
“Those wishing to book travel with an agent understand the value and importance of working with a travel professional.
“We note the resilience of our agent networks and the dedication of the owners, managers and consultants who continue to support their customers day in and day out.”
He also said many erstwhile advisors were seeking a return to the travel industry as it continued to recover.
“Helloworld agents made a return to the TV screens, radios and pages across Australia with our first brand campaign since the pandemic,” he remarked.
“This strategic campaign further supported our agent networks. Our agent network also continues to benefit from our ongoing enhancements to our mid-office system, Resworld, and technology improvements to our wholesale and air consolidation systems.
“The Helloworld Travel Academy has over 200 students, and it continues to support the agent network with training and onboarding new travel professionals.”
HLO’s network member status as of the end of end-2022 was 2,045 (compared to 2,396 in March 2020).
For the complete release and more information, head to www2.asx.com.au/markets/company/HLO
