helloworld results “deliver on priorities”

The helloworld half yearly results were released this morning, with CEO Elizabeth Gaines saying they are delivering on their priorities.

The company reported a total transaction value of $2.3 billion, with loss before tax sitting at $0.2 million.

The transformation to helloworld in Australia is now complete, and the upward swing in profit before tax reflects costs in business transformation costs and other non-recurring items wrapping up.

Shares suffered a basic loss of 0.17 cents per share, which actually marked an improvement of 84% compared to the previous corresponding period.

The adjusted EBITDAI also came in at $10.6 million, consistent with expectations of the company, and marking a more consolidated retail network.

Helloworld experienced some positive momentum in the business, with key achievements including an increased profitability in the Wholesale and Travel Management segments primarily, and an increased TTV for helloworld.com.au, up 155% from July to December 2014.

Gaines said these areas of improvement would be firmly in sight for future improvements.

“The remainder of FY15 will see HLO focused on maintaining the momentum of helloworld’s growing brand presence in the Australian market, continued top line growth in helloworld.com.au and building on the increased profitability of both the Wholesale and Travel Management segments,” Gaines said.

This retail segment brought in a TTV of $1.7 billion for the period, with revenue decreasing overall by 7%, reflecting a downsize in overall retail network that occurred during the shift to helloworld, with numbers of locations in both Australia and NZ dropping 8% compared to December 2013.

“Our franchisees and members tell us they recognise that their future success requires innovation and investment and that is a key differentiator that sets helloworld apart from our competitors,” Gaines said.

“And we continue to make strong progress in our business strategy through delivering profile, product, technology and training for our franchisees and members.

“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 our agents’ stores and continuing to roll-out our Ambassador store initiative.”

“HLO remains committed to ongoing investment to grow helloworld.com.au, a critical part of our omni-channel strategy. The level of investment required in the second half is expected to be lower than the first half, as TTV continues to grow.

“This continued investment in HLO’s digital offering, along with the subdued consumer sentiment3 in Australia, means that the Group is currently tracking to deliver an Adjusted EBITDAI in the range of $25 – $30 million and remains on track to deliver a Profit before tax in FY15.

“HLO will continue to evaluate different distribution channels and monitor overseas trends for future opportunities and continued growth.”

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