The Helloworld Travel Ltd (ASX: HLO) share price has risen today after the company reported its results for the 2019 financial year (FY19) this morning. HLO shares opened 2.74% higher this morning at $4.50 on the news, but have since dropped back slightly.
What did Helloworld tell us?
Here is a summary of what Helloworld reported this morning:
- Revenue growth of 9.8% to $357.6 million
- Total Transaction volume up by 9.1% to $6.5 billion
- Earnings (EBITDA) growth of 20.8% to $77.3 million
- Net profit after tax (NPAT) growth of 23.8% to $38.2 million
- Earnings per share growth of 20.7% to 31.5 cents
- Total dividend for FY19 at 20.5 cents – a rise of 13.9%
Revenue from Australia grew by 13% to $282.8 million, New Zealand revenue grew by 3.5% to $59.2 million and revenue from the company's Rest of World segment fell by 16.9% to $15.6 million. Helloworld linked this fall to lower total transaction values (TTVs) and challenging market conditions for its Insider Journeys and USA wholesale businesses. The sale of Insider Journeys was completed in June 2019.
Helloworld grew its retail network by 224 members to 2,447 in FY19 through 30 new Helloworld-branded agencies, as well as New Zealand-based agents such as Barlow Travel, Atlas and Gilpin Travel.
Outlook
For the coming FY20, the company has indicated it will continue to focus its ongoing investments in "technology, platforms and brands with continued focus on growing our business and productivity gains." Helloworld has observed that international tourist demand has "consistently outperformed global economic growth and all indications are that this will continue."
The company has also obtained a two-year extension for providing travel services to the Federal Government and has secured $50 million worth of accounts with the South Australian state government as well as Australia Post.
Helloworld also notes that its FY20 has started well and is in line with its expectations, reporting that July 19 revenue is up 7.9% on the prior corresponding period (pcp) and the retail network has grown to 2,463 as of 21 July.
