Retail and inbound travel company Helloworld has reported a $31 million net profit for 12 months to June 30 – up from $3.5 million last financial year – largely driven by by revenue growth of 8.7% in its Australian business and the contribution of recently-arrived AOT businesses.
The company said this result “mainly reflects the (first) full year inclusion of of AOT businesses including Sunlover Holidays, AOT Inbound and AOT Hotels, partially offset by the exit of our previously unprofitable (website) relationship with Orbitz”.
There wasn’t much detail on the financial performance of Helloworld’s 2000 strong retail network beyond phrases such as “positive growth and momentum”, though the company did say that airfare volumes increased 19% over the previous year, counter-balancing lower airfares.
In total, the Australian businesses generated $50.3 million of Helloworld’s $55.2 million in earnings before interest, expense, tax, depreciation and amortisation (EBITDA).
New Zealand also performed well, contributing EBITDA of $6.2 million, up from $1.9 million the previous financial year. Turnover rose 3.4% while revenue grew 15% thanks largely to improved margins from wholesaler Go Holidays.
Helloworld’s ‘Rest of World segment’ performance was poor, losing $1.4 million EBITDA.
Looking ahead, Helloworld says its focus is on growing revenue and extracting further ‘cost efficiencies’. It predicts EBITDA for the current financial year witll be in the range of $63 million to $67 million.