Helloworld upgrades financial year earnings guidance to $45m

Helloworld Travel has lifted its underlying earning guidance for the 2023 full financial year.

The return of holiday-makers taking ocean cruises has benefited Helloworld’s bottom line.

Leisure travel, including significant cruise bookings, have helped Helloworld Travel lift its underlying earning guidance for the 2023 full financial year to up to $45m in earnings before interest, tax, depreciation and amortisation (EBITDA) from a loss of $10.6m the previous year.

In a statement to the Australian Securities Exchange, the Melbourne-based Helloworld said its total transaction value (TTV) should exceed $2.56bn for the full year, up from the previous 12 months by 138 per cent, given all its geographic regions including Australia, New Zealand, Fiji and Greece are now in profit.

Helloworld chief executive Andrew Burnes said leisure travel continued to hold up strongly on both sides of the Tasman while cruise capacity continues to increase with cruise bookings now being taken through to the end of next year and into early 2025.

“Inbound arrivals to Australia and New Zealand continue to improve from western markets while demand across traditional Asian markets remains slow,” Mr Burnes said.

“We expect to see this improve significantly in 2024.”

Helloworld chief executive Andrew Burnes.

Helloworld brands include Cruiseco, Magellan, Travel Brokers and the newly acquired Express Travel Group, which has expanded its retail network, and was purchased for $70m.

Helloworld said it would release its audited accounts on August 28.

Helloworld rival, the $4.88bn Flight Centre, which is heavily involved in both leisure and corporate travel, recently upgraded its profit guidance for the 2023 financial year announcing it expected to produce an EBITDA between $295m to $305m for the 12 months to June 30, 2023. The $300m represents a 7 per cent increase in the company’s previously targeted range and a $483m turnaround on the $183m underlying loss produced over the previous corresponding period.