Helloworld Travel has released its results for the third quarter of the 2021 fiscal year, and the share market has responded accordingly.
The company’s total transaction value (TTV) for the three months to 31 March was $261.5 million, which was an improvement on the two previous quarters, but down a whopping 79.6 per cent on the same period last year.
Helloworld noted that TTV improved throughout each month of Q3 after January and February were impacted by lockdowns, with March recording the highest TTV for the financial year so far at $112.5 million.
The company’s overall revenue for the period totalled $15 million – down 75.8 per cent on the prior corresponding period.
Helloworld’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter came at a loss of $4.4 million, in line with its forecast losses announced earlier in the year.
One-off redundancy costs in the quarter were $1 million and other exceptional items totalled $0.8 million.
Helloworld’s share price was down 1.9 per cent to $2.03 following the trading update.
With all state and territory borders now open across Australia, and the commencement of quarantine-free, trans-Tasman travel, Helloworld anticipates TTV will continue to improve across the coming months in each of its divisions (retail, corporate, ticketing and wholesale).
The company expects to achieve annualised TTV of around $1 billion for the 2021 financial year and to incur a full-year underlying EBITDA loss of between $14 million and $16 million for FY21.
On the basis that domestic borders remain open, the two-way trans-Tasman bubble continues open and other international travel bubbles open up in the second half of the year, Helloworld expects an underlying EBITDA loss of between $1 million and $3 million in the September quarter and a return to positive underlying EBITDA in the December quarter.