Helloworld “adjusted profit before tax” of $6.9 million, statutory result a loss of $198.4 million.
Helloworld has just released its figures for the year to 30 Jun, with the previously announced $205.3 million non-cash goodwill writedown bringing the overall result to a loss of $198.4 million.
However the Adjusted Profit before tax was $6.9 million, which the company said was a “significant improvement” on the previous year’s result which was a $1.7 million loss.
“We have continued to make strong progress in our strategy to future-proof our business to drive results for our shareholders, agents and customers,” said ceo Elizabeth Gaines, adding that the group had succeeded in its goal of creating a network of high-calibre agencies.
She said strategic marketing investment had driven a tripling of brand awareness for helloworld which now stands at 34%. Although there had been a “slight reduction in the retail network year-on-year,” a further 50 “legacy brand” agents in Australia converted to the helloworld network in 2014/15, while member numbers in New Zealand grew by 13%. Gaines said during the current financial year the NZ business would transition to the helloworld brand, delivering “further synergies across staffing, branding and technology”.
The group’s TTV declined 3% to $4.69 billion, while revenue also dipped 4% to $279.2 million.The “adjusted EBITDAI” figure used by the board to assess the financial performance of the business dived 32% to $27.5 million, down from $40.6 million in the previous corresponding period, including the ongoing investment in building the helloworld brand and a “substantial investment” of $4.2 million spent on developing the helloworld.com.au multi-channel platform.
Gaines said the company was anticipating a substantial increase in profit next year, and is positioned for long-term sustainable growth “with a strong balance sheet, a stable network of high-performing agents [and] a growing and strategic online presence”.
More information in today’s issue of Travel Daily.