Helloworld praises agents amid staggering 1H24 profit jump

Helloworld praises agents amid staggering 1H24 profit jump
Edited by Travel Weekly

    Following the complete and successful integration of Express Travel Group, Helloworld has highlighted significant profit and EBITDA increases for the first half of the financial year.

    Key statistics

    Leading the Helloworld results overview is an impressive increase in total transaction value (TTV) by 82.3 per cent, to $2.2 billion in 1H24, reflective of the high demand for travel and Helloworld’s strong product offering and professional agent and broker networks.

    Total revenue and other income were $112.3 million, an increase of 53.4 per cent on the same period the year previous.

    1H24 underlying EBITDA and EBITDA $34.0 million and $32.7 million and up 117.7 per cent and 157.4 per cent respectively on the previous corresponding period (PCP). The earnings improvement is a direct result of the Express Travel Group acquisition, ongoing revenue growth, and a continuing focus on cost control.

    Net profit before tax was $23.6 million for the six months, compared to a $3.0 million profit in the
    PCP, net profit after tax was $16.0 million in the current period, compared to a $1.6 million profit
    in the PCP.

    Integration of Express Travel Group (ETG) now finalised, efficiencies achieved across both businesses with integration of technologies and core functions.

    Areas of business

    Retail – continued investment is supporting networks through marketing, agent training and system development + Helloworld Travel Academy (launched in 2022) has now seen nearly 400 consultants complete training.

    HLO Wholesale – Viva holidays celebrates 50 years and NTIA outstanding wholesaler award + ongoing development and enhancement of HLW B2B systems ‘Mango’ and ‘Ready Rooms’.

    HLO Inbound – International visitor arrivals to Australia and New Zealand continue to grow and are expected to remain strong, led by the UK and USA markets.

    Transport, Logistics and Warehousing – ‘Entertainment Logistix’ fleet now over 140 vehicles, largest provider of specialist transport and logistics services to the entertainment industry

    Consolidation – Air ticketing performing well thanks to demand and high fare prices, capacity is expected to grow and fares will level out.

    Outlook and guidance

    Helloworld has reaffirmed its guidance to hit underlying EBITDA of $64-$72 million for FY24, subject to no material adverse change in operating conditions. Moreover, the balance shows no external borrowings and strong liquidity while all recent acquisitions have been funded from internal resources.

    In 2024, Helloworld expects to see an increase in air capacity and lower fares as well as an increase in cruise operations and capacity and Australia and New Zealand as well as globally.

    “These half year results are a demonstration of the strong demand for leisure travel that is continuing in Australia and New Zealand,” CEO, Helloworld, Andrew Burnes, said.

    “The need for professional travel services continues to expand and is more important than ever.

    “The value of a travel agent as your ‘trusted advisor’ is understood by travellers and our networks are ideally suited to continue to service that growing need.

    “The year ahead is looking very positive for continued travel growth, driven by increased capacity from airlines and cruise operators globally, and the superb service from our travel agents and brokers throughout Australia and New Zealand.”

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