Hello, revenue up but stocks hit
HELLOWORLD shares have slumped nearly 10 per cent, with investors apparently not impressed with the travel group’s dividend increase and 5.4 per cent increase in firsthalf profit.
The company said it made $21.9 million after tax following business acquisitions the previous year, including Magellan Travel Group, Flight Systems Group and Asia Escape Holidays.
These acquisitions, which were completed between March and May last year, helped lift total revenue by 7.7 per cent to $182.2 million for the six months to December 31.
However, a strong Helloworld Australian retail division was partly offset by lower sales in New Zealand and elsewhere.
The company’s share price plunged on yesterday’s result, down 9.68 per cent to $5.60 from a near nine-year high of $6.20 at Friday’s close. The shares were $4.80 a year ago.
Helloworld, which provides international and domestic travel products and services, said it was riding positive momentum and expected sustainable long-term growth.
“In the second half of FY19, Helloworld Travel is focused on driving the business forward through profitable revenue growth and new revenue initiatives,” it said.
A rebranding initiative for the company’s Australian retail division includes a media partnership with News Corporation and a Helloworld television show.