News

Helloworld’s first half losses minimised despite tough environment

At its half year trading update, Helloworld Travel Limited recorded losses, however this was an improvement on the prior corresponding period (pcp).

Helloworld’s half-year statutory loss after tax fell to $14 million, compared to $15.1 million in 1H21.

Travel related revenue grew $12.5 million on the pcp for the travel company and operating costs declined, alongside short-term net operating cash outflows remaining tightly managed.

Helloworld also reported non-corporate and entertainment total transaction value (TTV) grew 86.6 per cent on pcp and as of 31 December, the group held cash balances of $87.6 million.

Bank liquidity covenant reduced from $55 million to $30 million from 31 December 2021 and unused debt facilities totalled $42.6 million for Helloworld.

The company also emphasised in its report that it has sufficient liquidity to maintain operations and continues to benefit from the recovery of the travel and tourism market.

The report mentioned that in December 2021, Corporate Travel Management (CTM) entered into an agreement to acquire all of Helloworld’s corporate and entertainment businesses in Australia and NZ.

As per the agreement, CTM will pay $175 million to purchase Helloworld Corporate, which includes QBT, AOT Hotels, TravelEdge and Show Group in Australia and APX and Atlas Travel in New Zealand.

Helloworld expressed excitement at the border reopening on 21 February, highlighting that on the day the re-opening was announced, the group had more bookings on the day than it had in the previous two years.

If travel demand continues to grow on its current trajectory, Helloworld predict that it will achieve a breakeven position or better in the June quarter of FY22 and return to profitability throughout FY23.



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