HLO reports profit jump

HELLOWORLD Travel ceo Andrew Burnes says the outlook for the company is “very positive” after reporting a 48% year-on- year increase in after-tax profit to $32 million ( TD breaking news).

The company’s total transaction value rose 3.5% to $6.1 billion, driven by strong volume growth in air ticket sales.

Lower international airfares impacted the result, partly offset by “improved contracting outcomes across the business”.

Operating costs were significantly lower, reflecting an ongoing focus on cost reduction initiatives, while the company’s retail travel network grew to 2,223 members across Australia and New Zealand as at 30 Jun, an increase of 208.

The growth was led by more Helloworld branded members, an expansion of the MTA home- based agent network, additional My Travel Group agencies and the acquisition of the 120-strong Magellan Travel Group.

The year saw HLO spend $17 million on capital investments - an increase of $7.2 million, due to the rebranding to Helloworld Travel across the network and “focused internal development on technology solutions”.

The Board announced a final dividend of 11c per share, taking the full year payout to 18c, and Helloworld is now forecasting earnings (EBITDA) of $76-80m for 2019, an increase of up to 22%.

More from Helloworld’s results on page five of today’s TD.