Helloworld rebounds with $18.7m profit
Helloworld has announced its half year results, ending 31 December 2016, and can report a profit before tax of $18.7 million, a radical change from the prior period which was a loss of $1 million in December 2015.
For the half year to December, Helloworld Limited also rustled up an EBITDA of $30.1 million, an increase of $22 million compared to 2015.
“We have positive momentum in the business,” CEO and managing director Andrew Burnes said.
Burnes attributed the strong performance largely to merger with the AOT Group in February 2016, which appears to be rather instrumental in turning the business’ books around.
“We have delivered a significant turnaround from the reported loss after tax in the first half of 2016, whilst integrating the Helloworld and AOT business.”
In August 2016, Helloworld ended the financial year with solid results in a time Burnes called “evolution” for the company.
Profit before tax was $3.5 million for the year ending June 2016, a significant improvement on the prior year loss of $198.4 million.
Burnes claimed the retail network of the company has grown to over 2000 members in Australia and New Zealand, which he said reflects “the stabilisation of our pre-existing network and the addition of MTA in Australia and World Travellers Group in New Zealand.
The Total Transaction Value for the half year ending December 2016 stood at $2.7 billion. The company claims it’s also on track to achieving $17.1 million of merger synergies and annual cost savings by June 2017.
But it wasn’t a cake walk to its current business position, and in May of last year, shortly after taking the top job, Burnes admitted, “The truth of the matter is that we had a really silo business and for a long period of time.
“The left hand wasn’t too sure what the right hand was doing, and businesses, although they were good businesses, they operated completely independently from each other, across the Tasman and within Australia.”
2016 saw Delta cut its ties with Helloworld, as well as the shock departure of CMO Kim Portrate, head of wholesale Peter Egglestone, CFO Jenny Macdonald, and Qantas Holidays and Viva! Holidays general manager sales Fiona Dalton, who joined The Travel Corporation.
But despite the rocky year of 2016, Burnes believes the business is right on track to being “a much stronger business in 2020 than it is today”.
“Business fundamentals are heading in the right direction in our key market segments with demand for our integrated service offering continuing to develop and grow,” he added.
“Helloworld is benefiting from efficiency and cost control initiatives implemented since the merger with the AOT Group in February 2016.
“We continue to strengthen our relationship with our member networks and customers ensuring we are aligned to achieving our objective of providing enhanced customer service experiences across our business.”
It comes after Helloworld aquired four new cruise businesses last week, taking on Cruise Factory, Seven Oceans Cruising, Cruise Abroad and Worldwide Cruise Centres.
The transaction for these businesses is scheduled to wrap up by the end of this month, with consideration for the acquisition comprising 100,000 Helloworld Limited shares and $664,000 in cash.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Andrew Burnes aot group Helloworld mta Travel Agent world travellers groupLatest News
Two thirds of Australians support introduction of tourism tax, survey reveals
Can you guess which generation was the most outraged at the news? Hint: It is exactly who you think!
“The consumer really just wanted more classic reward availability” – customers underwhelmed by Qantas FF shakeup
All this consumer wants is to sit behind someone that doesn't push their seat back to near-horizontal levels.
Aussie travellers warned of ‘significant’ visa shifts in destinations including Chile, US and Vietnam
To be honest are biggest advice for having a layover in the US, is just don't.
Profile: Delta CEO Ed Bastian
Bastian says the airline business isn't for the faint hearted. We're sure Alan Joyce would agree!
Final Call: Travel DAZE Exec early birds are about to expire
Much like the auctioneer at the hottest sale of the year, we're giving you one more chance to jump at this deal!
Forget the weekend! Experience Gold Coast launches mid-week travel campaign
Your boss might be a bit bothered if you jet off mid-week, but you'll be the envy of all of your Instagram followers.
Victorian Tourism Industry Council warns of losing tourism dollars to NSW & QLD
Trendy cafe's hidden in CBD laneways can only get so many tourism dollars, clearly!
AIME 2024 rustles up $330m for APAC economy
This figure is a 65 per cent increase on 2023, much alike The Nibbler staff's alcohol consumption.
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Star boss resigns, admits retaining NSW casino licence unlikely under his leadership
The CEO resigned after 18 months in the role. 'Another one bites the dust' rumoured to be heard playing in Pyrmont.
Corporate Traveller swings amateur golfers around the globe for World Golf Competition
How're your golf skills? Consider yourself a Tiger Woods or often get quadruple bogeys? We take after the latter.
Corporate travellers to spend big on Melbourne F1 despite financial pressures
Part of the attraction is sick days after the event as corporate travellers suffer creaked necks and blown eardrums.
Bonza officially kicks off Gold Coast-Darwin route
The Flying Purple Thumb is back at it with another route. We swear, we're going to make this nickname stick!
South West Sydney Tourism launches Western Sydney Tourism Awards
Penrith's 3 consecutive NRL premierships wasn't enough? The people of Western Sydney could fill the trophy cabinet more!
Hotels vs. Airbnb: Industry leaders at odds over who should pay accommodation levy
There's not as much gore in the Hotels vs. Airbnb saga as there is in Alien vs. Predator, but it's just as thrilling!
Singapore Airlines revamps premium economy with new menu, amenity kit
Felt Singapore Airlines was lacking "the sauce" (as the kids say). Bolster belief in the carrier's je na sais quoi here.
Business Events Adelaide set for 20th Destination SA event
Destination SA turns 20! Hopefully it's not celebrated with vodka cruisers and vapes like most 20th birthdays.
Boeing’s woes delay massive Virgin Australia order
This delay means Virgin staffers will be without that new plane smell, inspiring us to sell it in a can.
All the winners from the 2023 Qantas Australian Tourism Awards
Somehow missed this news recently? Good thing you're subscribed to our fabulous newsletter!
Corporate international travel from Brisbane up 30% YOY: Flight Centre
Queenslanders seem keen to go somewhere that actually serves good beer! Sorry, we actually like Great Northern.
Amora Brisbane undergoes $30m remodelling, geared up for MICE offerings
When $30m goes into an amazing hotel to get it geared up for MICE offerings, that's amore!
Corporate Travel Management’s CEO Laura Ruffles steps down
CTM confirmed that Ruffles will be stepping down due to a personal health issue, effective immediately.
Qatar Airways crowned World’s Best MICE Airline at World MICE Awards
You could say Qatar Airways really 'nabbed the cheese' with this one! Alright, we'll see ourselves out...
Qantas, Jetstar & Virgin hike airfares as supplier costs inflate
Supplier increases means you'll pay more. It's like pass the parcel, but instead of getting a present, you owe money.
NSW Central Coast wins global sustainability award for promoting ecotourism at ITB
NSW Central Coast jumped the gun on St. Patricks Day and got the green celebrations going early!
PHOTOS: RuPaul’s Drag Race stars hit Kings Canyon for Priscilla’s 30th anniversary
The stars have renamed the iconic spot 'Queens Canyon'. No name change to the adjacent 'Priscilla's Crack', however.
Air NZ to suspend Auckland-Chicago route amid aircraft troubles
Sorry Kiwis, your craving for authentic deep dish pizza will go unsatiated (or you could just fly with another airline).
Tasmanian Premier promises to build the world’s largest chocolate fountain if re-elected
If only sticky 6-year-old children could vote. Then the Tassie Premier would be guaranteed a victory!
The staggering amount invested in 2022/23 Australian tourism projects revealed!
Any guesses on how much it was? We'll give you a hint: It's between $1 and $9 trillion (hope this helps).
Marriott’s Bonvoy Lounge makes it a 5-peat at Formula 1 in Melbourne
If Formula 1 is so good, then why isn't there a Formula 2? Oh there is one... Never mind.
Virgin Australia posts $236m profit, but the outgoing CEO warns of turbulence ahead
Hrdlicka warns of tough times ahead, just after announcing she's leaving. We wonder if there could be a connection!
Ascott opens new 255 room property in Central Sydney
Bored of your bedroom and want 255 new ones to try? The new Ascott property is here to solve this very specific problem!
Work and play at the Radisson RED, Auckland
We aren't going to tell you what order to work and play in, just that you should be looking to do both at Radisson Red.
Swiftonomics 101: Just how much did fans spend travelling to see Taylor Swift?
Thought you'd heard the last of Swift, huh? Not in your Wildest Dreams could Swiftomania go out of Style!
Rex posts a $13.3m turnaround for 1H24, but still at a loss
Rex is slowly making its way back to pre-pandemic form. Much like us with our sporadic attempts at exercise.