Travel Agents

Helloworld hits $21.5m profit, up 1,116% on FY16

Hannah Edensor

Helloworld Travel Limited’s end of financial year results are in, and the group landed itself with a net profit after tax of $21.5 million.

This figure is a huge increase on last year’s net profits of $1.7 million, with the profits leaping by 1,116 per cent – or $19.8 million.

The NTIA Agency of the Year has hit a number of targets in 2017 that have contributed to its positive results, including the implementation of $18.6 million merger synergies and annual cost savings by June 30, outperforming their previous annual savings target of $17.1 million.

It also grew its Total Transactional Value (TTV) to $5.9 billion, achieved solid revenue growth of 8.6 per cent to $326.4 million via TTV growth and margin improvement through the full year impact of the AOT businesses, as well as better supplier and partner contracting.

The company rebranded this year to go back to its roots, changing to ‘Helloworld Travel’, with the addition of ‘’The Travel Professionals’ to their image, and investments into Hunter Travel and QLD-based agencies.

“Helloworld Travel Limited has successfully implemented a significant business turnaround,” CEO and Managing Director, Andrew Burnes, said.

“We have continued to focus on implementing key technology initiatives to further align our bricks and mortar franchise network with online distribution platforms, creating an integrated ‘clicks and mortar’ travel solution.

“We have strengthened the relationship with our member networks, invested in new consumer marketing, advertising and sponsorships, and through our successful rebrand to Helloworld Travel – The Travel Professionals with a new tagline, jingle and in-store branding.

“Our recent rebrand was very well received by members, gaining immediate traction with eight stores converting to fully branded Helloworld Travel outlets in July 2017.”

In December 2016, Helloworld acquired 50 per cent of Mobile Travel Agents (MTA) for cash consideration of $13.9 million, allowing for home-based travel consulting services throughout Australia.

The investment provides Helloworld with a significant footprint in a sector that’s experiencing solid growth right now, especially after Flight Centre’s acquisition of Sydney-based Travel Partners, and a NZ mobile agency network.

From an Australia perspective, results reflect strong improvement in margins, productivity and right sizing of cost base, while NZ has delivered strong revenue growth from its wholesaler brands and larger retail member network.

The retail network has increased to over 2,000 members across ANZ segments, which factors in the addition of MTA in Australia and WTG in New Zealand.

For 2018, Helloworld expects preliminary earnings to sit in the range of $63 to $67 million, following this year’s EBITDA of $55.2 million.

The group said, “The outlook for Helloworld Travel is positive.

“Business fundamentals are heading in the right direction in all our key segments with demand for our integrated service offering continuing to develop and grow.”

In corporate business, QBT in Australia secured new account wins in the NT Government and PwC during the 2017 financial year, while in August, AOT Hotels successfully re-tendered the whole of Australia contract for accommodation program management.

Segment Performance

The TTV in Australia sat at almost $5 million in FY17, while revenue increased by nearly nine per cent to $243.6 million, reflecting the inclusion of AOT business, including Sunlover Holidays, AOT Inbound and AOT Hotels.

Helloworld acknowledged this revenue was “partially offset by the exit of our previous unprofitable relationship with Orbitz involving our online channel”.

NZ’s TTV was up 3.4 per cent to $849 million, while revenue was up 15 per cent.

Looking at Helloworld’s segments in the rest of the world, and the TTV declined just under nine per cent to $114.5 million. Revenue was also down by six per cent, reflecting the refocus of distribution methods used in the Insider Journey’s business.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

Tourism

Airbnb’s ‘Around the world in 80 days’ tour off to shaky start, after tour operators caution company

Travel Weekly was disappointed to learn that Jules Verne does not make an appearance on the tour, and hopes that Airbnb’s next tour, 20,000 Leagues Under the Sea features the author.

Share

CommentComments

Aviation

Ex-flight attendant reveals the most dangerous part of flying

An ex-flight attendant has told some eyebrow-raising stories of her time as a flight attendant, revealing the most dangerous part of her job.

Share

CommentComments

Tourism

TripAdvisor reveals travellers picks for the world’s best experiences

Our friends at TripAdvisor have revealed the best experiences in the world, while the best experience of our day has been a burnt tongue from a hot cup of coffee.

Share

CommentComments

Travel Agents

Diversity, technology and the three-year picture: Three things we’ve learnt about Travel Counsellors

by Christian Fleetwood

TCX revealed some important insights into how Travel Counsellors do what they do. Here are three that stood out from the conference in Adelaide.

Share

CommentComments

Tourism

Aussie tourist slapped with $2,500 fee over broken nail

A friendly reminder to travellers heading to the US to PLEASE get travel insurance.

Share

CommentComments

Travel Agents

“Consumers have rights”: Dodgy travel agency busted by QLD grandmother

by Ali Coulton

Similarly, Travel Weekly’s editor has been busted taking more than his fair share of the office Tim Tam supply, which we find equally troubling.

Share

CommentComments

Road & Rail

Paris to phase out iconic paper metro tickets

It’s the end of an era folks: Say goodbye to finding Paris metro tickets in every jean and jacket pocket weeks after returning home.

Share

CommentComments

Tourism

RESEARCH: Aussie travellers cutting down length of overseas trips

Meanwhile, Travel Weekly staff are looking to buck the trend and find ways to EXTEND their overseas trips and spend less time in the office.

Share

CommentComments

Aviation

Aviation wrap: Emirates to reduce single-use plastic, Qantas’ new plane order, Western Sydney Airport update + MORE!

Felt a little in the dark lately about what’s been happening in the world of commercial aviation? This airline wrap should provide all the illumination you need.

Share

CommentComments

Breaking News

Travel Agents

Helloworld wins extension for prized government contract

It’s champagne and pats on the back throughout Helloworld offices today as the agency’s subsidiary QBT cops two more years to its government contract.

Share

CommentComments

Aviation

Boeing facing class action by 400-plus pilots over 737 MAX’s “unprecedented cover-up”

More than 400 pilots have issued a class-action lawsuit against Boeing – the first of its kind to be issued against the company – over its problematic 737 MAX jet.

Share

CommentComments

Events

Get the gang together: Buy two Travel DAZE tickets and get one free!

With savings like these, you’re practically LOSING money if you don’t attend. Well, sort of.

Share

CommentComments