Helloworld reinstates dividend as travel demand returns; annual losses cut to $36m
The travel group’s annual losses have fallen to $36m as demand returns, and plans to open more bricks-and-mortar shops.
Helloworld has cut losses for the year ending June 30 to $36m as demand for holidays rises after pandemic restrictions ease.
The travel group said it expected to open more stores, which it says will allow the company to provide services that “cannot be matched” by online platforms.
The $36m annual loss before tax compares to a $54.7m loss in the prior corresponding period.
Helloworld’s total transaction value more than doubled to $1.08bn for the year ended June 30 from $448.8m last year.
Transactions rose to $218m in June, a steady increase from a low of just $34.5m in August.
Helloworld on Tuesday resumed paying dividends, declaring a fully franked final dividend of 10c a share, thanks in part to its $175m sale of its business travel division to Corporate Travel Management during the year.
Helloworld chief executive Andrew Burnes said the agency’s clients were, in particular, booking travel to the UK, North America and Europe. Mr Burnes said the past two years had been the most difficult for the travel industry, adding: “our business stands ready for a strong rebound.”
“We have a strong balance sheet, with no borrowing, cash reserves and substantial liquid assets. Our network of agencies has proven to be resilient and robust, despite the impact of Covid-19,” Mr Burnes said on Tuesday.
Helloworld said the first quarter was impacted by more outbreaks and lockdowns in Australia and New Zealand but with Fiji reopening its borders and Western Australia removing its restrictions by the third quarter, transaction values improved.
As of June, Helloworld had 2064 agents across the network, down from 2168 in December 2021 and 2224 members in June 2021. The group expects underlying earnings for the 2023 financial year to be $22m to $26m, adding that it will continue to invest in supporting new and existing franchisees to return to shop fronts.
Helloworld will continue to focus on the growing leisure travel market saying that ‘based on retail, wholesale and inbound booking intakes across the first six months of 2022 we expect strong incoming tourism over the southern hemisphere summer.
The dividend will pay on September 23. Helloworld shares closed 5.7 per cent – or 10.9c – higher on Tuesday at $2.05. They are down 19.6 per cent this year.
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