Travel Agents

Helloworld posts profit and record TTV, but expects “minimal growth, if any” for rest of FY20

Huntley Mitchell

Huntley Mitchell

Helloworld Travel has once again recorded growth in all key metrics for the first six months of the 2020 financial year, but has warned of a slowdown in the second half.

The company’s half-yearly profit rose 4.1 per cent to $22.7 million, buoyed by solid growth in earnings, revenue and total transaction value (TTV).

Helloworld’s underlying earnings before interest, taxes, depreciation and amortisation increased by 14.8 per cent to $48 million, while its revenue lifted 9.8 per cent to $200 million.

TTV hit a record $3.6 billion in the first half of FY20 – up 12.9 per cent compared to the prior corresponding period.

Looking at its performance in Australia, Helloworld’s earnings rose 14.4 per cent to $42.3 million, revenue grew 11.7 per cent to $162.5 million, and TTV increased by 10.8 per cent to $3 million.

However, the company expects its retail leisure, wholesale leisure and corporate businesses to be impacted by COVID-19 (coronavirus) in the second half of FY20, with “minimal growth, if any”, compared to the second half of FY19.

“Based on current trends and as a result of the bushfire crisis over summer and COVID-19, we expect a negative impact on cruise sales, our inbound businesses and air ticket sales to and via Asia – particularly China, Hong Kong and, to a lesser extent, Singapore.”

Helloworld’s inbound business accounts for three per cent of its total TTV, and its China inbound business accounts for three per cent of its total inbound business.

The company expects to deliver underlying EBITDA at the bottom end of the earnings guidance of $86 million to $90 million.

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