Helloworld heralds “exciting” times despite earnings dip

Helloworld saw earnings decline by $0.3 million in the half year to December 2015, although the newly acquired AOT Group saw earnings significantly rise.

The company’s net loss for the six months to December 31 increased to $1.65 million from $700,000 in the previous corresponding period.

However, Helloworld’s total transaction value (TTV) rose 5.4% to $2.4 billion due to a strong boost from its corporate segment.

Commenting on the results, chief executive Andrew Burnes insisted the group’s underlying model, its network of agents, is “strong”.

“The markets in which we operate offer excellent long-term growth prospects,” he said.

“Our core businesses, retail, wholesale, inbound and travel management, are solid, and our entire business has a renewed focus on growth and margin.”

Meanwhile, the unaudited EBITDA for AOT Group came in at $11.2 million, up 24% on the previous corresponding period, which Burnes said came in line with the FY16 forecast outlined in the Independent Expert’s Report dated December 18.

“The completed merger means expanded scale, enhanced offerings, broader distribution, better technologies, and long-term stability for the enlarged group,” he said.

“It delivers the benefits of vertical integration, greater financial strength, a strong management team and a results-driven business platform.”

Burnes described it as an “exciting period” for Helloworld and promised shareholders, agents and stakeholders would see the company “evolve, grow and generate returns”.

“Post-merger, Helloworld is a company with a very strong business at the heart of the Group,” he said. “We have continued to build on delivering value for our retail franchise and member agents and for the travelling public. Our inbound, tour operating and corporate businesses continue to perform well.”

The immediate focus for Helloworld is, according to Burnes, to “embed the foundations” for long-term growth” with an emphasis on financial strength and providing its network of agents with a range of products, tools and technology to ensure they can best serve their customers.

“Cost containment will also continue to be a focus – we have already identified expected synergies of $7.6 million per annum to be achieved by 30 June 2017 with approximately $2 million of associated costs,” he said.

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Latest comments

Secret Flying says:
February 25, 2016 at 3:07 pm
Yeah but if you’re CEO you should already have some feathers in your cap. Not sure this guy even wears a cap.
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Tony says:
February 25, 2016 at 2:06 pm
Give the man a chance. He has only been there 2 minutes. It will not be hard improving on the last 3-4 years performances by the inept board, ceo’s and executive team. Needs to be much more blood letting though over the next few weeks.
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Secret Flying says:
February 24, 2016 at 8:42 pm
Doesn’t sound like a very competent chap. All a lot of rhetoric but no substance.
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agents Andrew Burnes aot group helloworld results