Travel Agents

Acquisitions help Helloworld’s full-year profit soar

Huntley Mitchell

Huntley Mitchell

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.

TDAZE_SurpriseEgg
What’s inside the egg? Click HERE to find out.

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.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Aviation

MH370 case continues with fresh revelations

by Christian Fleetwood

Ahead of the premiere of a new documentary on the doomed flight, an ex-prime minister has thrown in his two cents.

Share

CommentComments

Technology

Webjet’s “key disappointment” in half-yearly results

by Huntley Mitchell

Webjet has taken a significant hit to profit growth in the first half of FY20, which it largely blames on the collapse of a key client.

Share

CommentComments

Cruise

Cruise Wrap: RCL heads to Eden, Viking’s points promo, Silversea single supplement savings + MORE!

Wish you were cruising through the Caribbean rather than slugging it out with the rest of us? Feel free to live vicariously through the images in this Cruise Wrap.

Share

CommentComments

Travel Agents

Travel Counsellors appoints first corporate travel MD

Travel Counsellors for Business has hired its first-ever MD… as in managing director. Not medical doctor, as originally reported by Travel Weekly.

Share

CommentComments

Hotels

Event Hospitality & Entertainment forms JV with budget hotel group

Without giving too much away, this story is a ‘Jucy’ one. However, that’s not to say it’s full of pips.

Share

CommentComments

Road & Rail

Win a trip for two on an exclusive Rocky Mountaineer journey

by Sponsored by Rocky Mountaineer

In celebration of Rocky Mountaineer’s 30th anniversary, travel agents have the chance to win a trip for two on an extraordinary journey! Click here for all the details.

Share

CommentComments

Road & Rail

“We’re agent-friendly, that’s our business”: Busabout launches new booking platform

Adventure Planner is designed to give agents the tools to create a seamless, flexible and personalised trip across Europe for independent travellers.

Share

CommentComments

Destinations

Prague cracks down on Airbnb to avoid becoming a “ghost city”

Prague has taken the next step in its crusade against home-sharing platforms like Airbnb, approving a swathe of legislation to police short-term rentals.

Share

CommentComments

Cruise

Princess to inject $140 million into Aussie tourism with 44 new deployments

Princess Cruises is looking to pump money into the struggling domestic market by adding 44 new deployments in Australia for Sapphire Princess.

Share

CommentComments

Aviation

Aviation Wrap: Boeing’s $74m 737 MAX relief, Emirates helps Arsenal prepare for EPL run in with Dubai training camp + MORE!

When writing this week’s Aviation Wrap, we could have sworn the sound of airplanes taking off was in the air. On second appraisal, we discovered it was just tinnitus. 

Share

CommentComments

Wholesalers

Excite Holidays directors to regain control following creditors vote

by Huntley Mitchell

The directors of Excite Holidays are set to take back control of most of the companies tied up with the wholesaler, following a vote by creditors yesterday.

Share

CommentComments

Road & Rail

Via Rail cancels most trains across Canada amid ongoing protests

by Christian Fleetwood

Ongoing anti-pipeline protests in Canada have massively disrupted passenger train services across the country, with more than 83,000 Via Rail passengers effected so far.

Share

CommentComments