Helloworld hits $21.5m profit, up 1,116% on FY16
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.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Andrew Burnes aot financial results helloworld helloworld travel mta travel agentLatest News
Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa
Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]
Nielsen Data reveals brands spending big to attract Aussie tourists
TripADeal had the biggest outlay of the more than $153 million spent on travel and tourism advertising in Australia in the first quarter of 2024, followed by Virgin Australia and Flight Centre-owned Ignite Travel, new Nielsen Ad Intel data has revealed. And the industry ad spend enjoyed an increase of 8 per cent on the […]
Kamalaya Koh Samui clinches clutch of wellness awards
Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]
Jetstar offers 200,000 return for free flights to celebrate 20th anniversary
Jetstar hits 20 and everyone else gets the presents with free return flights to domestic and international destinations.
Amora Hotels & Resorts set to double APAC portfolio, announces new Sydney office
Staff in the new Sydney office have been welcomed by a week of rain on the forecast.
RIU opens Chicago hotel and rooftop bar a few steps from the world-famous Magnificent Mile
Rooftop cocktails hold a dear place in your heart? Look no further than RIU Chicago.
How can travel agents best sell cruises? Uniworld’s Alice Ager tells all: Travel Weekly TV
Agents, you don't want to miss this. Yes, that's the case with everything in the newsletter, but we really mean it here!
South Africa bookings are back in action
It's a wrap! South Africa in the news with resumed flights, film fest and booking tech.
Bonza nosediving amid mass cancellations and reports of repossessed planes
Bonza's days appear to be numbered as the low-cost carrier today announced mass cancellations around the country.
Amy Poehler joins Vivid Sydney event
Oh Joy! Hit comedian Amy Poehler will make an emotional appearance at the Sydney Opera House for Vivid.
Pullman Sydney Penrith ties up with Trilogy Hotels, announces new GM
The crew from Trilogy hotels doing their best impression of the Penrith front row here.
Linkd appoints Carolyn Nightingale and Lawson Dibb to new roles
Linkd Tourism sings praises of Carolyn Nightingale and dubs Lawson Dibb as Kyushu Tourism Office guru.
Celebrity Ascent makes its European debut
Choosing to cruise this northern summer? Celebrity Ascent promises to raise the bar.
NCL opens sales for Norwegian Sun’s APAC debut, announces 14 new voyages
It was to be 13 new voyages we heard, but given the numbers unlucky nature, an extra had to be thought up.
Inside Travel Group appoints Tom Welland Global Trade Marketing Manager
Heidi's Tom Welland heads to Inside Travel Group as its new Global Trade Marketing Manager.
Federal Government rolls out $1.4m program to promote careers in tourism across regional NSW
The Government taking a break from some of its pointier issues with some work in our incredible industry!
Australian visitors to South Korea surge
Japanned out? Aussies are adding South Korea to their bucket list.
G Adventures celebrates Dr. Jane Goodall’s 90th with new wildlife-focused trips
Fancy yourself as a bit of a conservationist? Put your skills to the test on the Jane Goodall collection.
Virgin Australia says suspended flights to Bali result of Boeing MAX delays
If only we had a company like Boeing to blame our mistakes on. Any takers? Get in touch!
Airline Review: Singapore Airlines Business Class – A380-800
The iconic Singapore Airlines' A380-800 is in a class of its own - business class that is.
South African Airways to relaunch Joburg – Perth flights as economic ties strengthen
Bringing two of the world's most distinctive accents closer together, for good or for bad is yet to be determined.
My journey: Before becoming a travel agent I was… a palliative care nurse
Australind Travel & Cruise, Travellers Choice member Saibra Twigg reveals her life as paediatric nurse then to palliative care before a career leap to travel agent. How did you become a palliative care nurse? ST I went straight from school in nursing and initially specialised in paediatrics, working at Perth’s Princess Margaret Hospital for Children. […]
Emirates unveils future plans with new hub at Al Maktoum International Airport
We've also been looking into our future. It involves plenty of famils, we hope.
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.