HLO warns of virus hit

HELLOWORLD Travel says it is expecting a “negative impact” on cruise sales and inbound bookings as a result of the COVID-19/coronavirus crisis.

The company, which this morning unveiled a strong first half result (TD breaking news), is also expecting the virus to hit air ticket sales “to and via Asia”, particularly China, Hong Kong and, to a lesser extent, Singapore.

“We anticipate the net outcome to the business will be minimal TTV growth on a like-for-like basis for the remainder of FY20,” an ASX update noted, with more information to be detailed in Apr.

However on the basis of cost reduction strategies already being implemented, the business expects to deliver underlying earnings at the bottom end of the $86 million to $90 million guidance previously provided.

The company reported record TTV for the six months to 31 Dec, with overall sales up 12.9% to $3.56 billion for the period.

Revenue jumped 9.8% to $200 million, while net profit after tax of $22.7 million was up 4.1%.

Helloworld noted it had 2,496 member outlets as of 31 Dec, across its six networks, an increase of 49 since 30 Jun 2019.

Recent developments in the company’s wholesale division included the consolidation of brands under Viva Holidays, the addition of new Scandinavia and Greece product offerings, and the agreement to purchase the Excite Holidays software platform.

On the corporate side, operations expanded with the acquisition of TravelEdge, with the overall division on track to achieve trans-Tasman TTV of $1.6 billion for FY20.

Helloworld also confirmed the appointment of QBT as the travel provider for News Corporation, and the ongoing rollout of its new ResWorld platform, which is anticipated to be deployed to over 100 outlets by Jun this year.

The company declared a 9c per share interim dividend.