Helloworld Travel has posted big profit growth for the last financial year off the back of several key business acquisitions.
The company’s profit soared 23.8 per cent to $38.2 million in the 12 months to 30 June 2019, compared to its $30.8 million profit in FY18.
Helloworld’s full-year revenue rose 9.8 per cent to $357.6 million, and its total transaction value (TTV) increased by 9.1 per cent to $6.5 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 20.8 per cent to $77.3 million.
The company’s strong results were driven by several business acquisitions in the second half of 2018, including the Magellan Travel Group, Flight Systems and Asia Escape Holidays, along with the addition of Show Group in December 2018.
The Australian segment of Helloworld generated a TTV of $5.6 billion in FY19 – up 10 per cent on the previous financial year – driven by strong growth from the enlarged business and increased product offerings.
Helloworld’s Aussie revenue grew by 13.2 per cent to $282.8 million, led by the expansion in the retail division, improved margins driven by increased network sales through preferred partners, and a focus on profitable revenue streams, according to the company.
EBITDA for the Australian segment was $65.0 million – an increase of 14.1 per cent compared to FY18.
Helloworld’s retail networks grew by 244 members to 2,447 in the last financial year.
In the company’s report to shareholders, Helloworld CEO Andrew Burnes said the company’s outlook was “very positive”.
“As a group, we remain focused on growing our TTV at profitable margin levels while carefully controlling our costs,” he said.
“We will continue our commitment to focus on strategically growing the business and delivering for our agent networks at profitable margins.
“We also remain committed to increase our investment in our people, brands, products and technology to ensure the Helloworld Travel Limited business is well positioned to deliver sustainable long-term growth.
“We believe in the agency distribution model and the value agents add to consumers in planning, booking and managing their leisure and corporate travel and our business focus is on ensuring we have both the off-line and on-line capabilities to maximise the value for our travel customers via our agency networks.”
Helloworld has made some big business moves in recent months, including the acquisition of Kiwi sports travel player The Willment Travel Group, an expansion of its New Zealand retail network, the sale of wholesale business Insider Journeys, and an extension of its prized government contract.