Coming off the summer break, Australia and New Zealand-based travel distribution company Helloworld Travel (ASX: HLO) reported strong financial results for the first half of FY24, driven by growing demand for leisure travel.
The Company’s earnings surged to $34 million, marking a 117.7% increase from the previous corresponding period’s $15.6 million, while Total Transaction Values (TTV) reached $2.20 billion, reflecting 82.3% growth.
Total revenue also experienced expansion, rising to $112.3 million, an increase of 53.4%. Profit after tax rose to $16 million, up from $1.6 million in the prior corresponding period, representing 902.9% growth.
Chief Executive Officer and Managing Director of Helloworld Travel Limited, Andrew Burnes, AO, commented, “These half-year results are a demonstration of the strong demand for leisure travel that is continuing in Australia and New Zealand. The need for professional travel services continues to expand and is more important than ever.”
“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.”
In Australia and New Zealand, there remains a decent demand for leisure travel, along with a need for travel agent services in both leisure and corporate sectors. Travellers increasingly recognise the value of a travel agent as a trusted advisor and travel manager.
That is also why Helloworld’s retail businesses are thriving. So, the Company is investing in its networks with marketing, better deals, agent training, and improving systems. The Helloworld Travel Academy, launched in July 2022, already has nearly 400 consultants in Australia and New Zealand undergoing or completing training, with more joining soon to support our agents.
The retail business serves over 2,400 members of travel agencies and broker networks across Australia and New Zealand. Airlines and cruise lines are increasing capacity to meet the continued demand from travellers, both locally and globally, expected to continue into FY24 and beyond.
International visitor arrivals to Australia and New Zealand continue to grow and are expected to remain strong, led by the UK and US markets.
As a result of its H1 FY24 results, the Company announced a final dividend of 5 cents per share, fully franked, scheduled for payment on March 22, 2024. Plus, it reaffirmed its guidance to rake in an underlying EBITDA of $64-$72 million for FY24, conditional upon no material adverse changes in operating conditions.
Helloworld forecasts further growth in complex, high-spend leisure travel, boosting travel advisors’ value.
Alinda is a Business Reporter for The Sentiment
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