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

You must be logged in to post a comment.

Travel Agents

Flight Centre acquires Aussie travel company

Flight Centre is hoping this latest acquisition will give its Australian leisure business a much-needed boost.

Share

CommentComments

Travel Agents

Agent wrap: Agents say G’day to LA, win a trip to New York state + MORE!

If you’re not marching in the climate strike today, you may as well make use of your time in the office by checking out the latest famils and events.

Share

CommentComments

Tourism

Flavour of the week: Crystalbrook Collection’s new PR, Akaryn Group gets VP of development and operations + MORE!

This week’s industry appointment wrap up is particularly flavoursome, and not just because there’s a man holding a whopping great mud cake as the lead image.

Share

CommentComments

Wholesalers

Industry reacts to shock collapse of Tempo Holidays and Bentours

by Huntley Mitchell

The sudden exit of Tempo Holidays and Bentours from the local market has prompted other travel companies to offer support for affected agents and clients.

Share

CommentComments

Cruise

“I didn’t do it”: Watch as sightseeing ship strikes World War II vessel on Hudson River

by Christian Fleetwood

A passenger vessel travelling the Hudson River has collided with a decommissioned war vessel. Watch the chaos unfold here.

Share

CommentComments

Hotels

Airbnb offers fans the chance to stay at Downton Abbey castle

Do your clients fancy staying in an ultra-luxe castle for the night with 300 rooms? Help them live out all their royal family fantasies with this.

Share

CommentComments

Road & Rail

Road & Rail Wrap: LAX’s historic rental car facility, Rail Adventures’ Sri Lanka commission + MORE!

If this week’s Road & Rail Wrap was a meal, it’d be a family-sized banquet, as opposed to it usually looking like chicken stuffing and sides.

Share

CommentComments

Hotels

Hotel Wrap: Malaysia’s newest hotel brand, Fairmont’s underwater art installation + MORE!

Looking to cure your post-hump day blues with something other than a bottle of vodka or a block of Cadbury Top Deck? Feel instantly better with our Hotel Wrap!

Share

CommentComments

Aviation

Airline puts its crew on a “low-fat” diet after firing several for being overweight

It’s not clear whether the heavily indebted airline made the decision to save money or to get its crew into shape. Either outcome is not ideal.

Share

CommentComments

Cruise

Royal Caribbean’s biggest challenge “has been the same thing for 50 years”, says vice chairman

by Huntley Mitchell

Travel Weekly recently joined Royal Caribbean’s Adam Goldstein for lunch and conversation. Here’s what we managed to regurgitate… from the chat, that is. Not the ham sandwiches.

Share

CommentComments

Aviation

Jetstar flight to Bali forced to turn back over windscreen crack

An eight-hour flight to Bali turned into a six-hour flight to Melbourne when pilots noticed something wasn’t quite right with the plane’s windscreen.

Share

CommentComments

Technology

Agoda unveils fresh look

Coincidentally, Travel Weekly’s editor is also trialling a new look. However, his cornrows are far less “fresh” than Agoda’s swanky new font and dots with eyes.

Share

CommentComments