How Did HLO Perform In The First Half Of FY2019?

HLO

HelloWorld Travel Limited (ASX: HLO), a retail, wholesale and corporate travel company from the Consumer Services industry group, has announced the half-yearly results of FY2019 for the period ended 31 December 2018.

During the period, there was a growth in the total transaction value (TTV) by 6.1% to $3.2 billion as a result of business expansion. There was an increase in the revenue by 7.7% which is equivalent to $13.1 million to $182.2 million as a result of acquisitions and improved revenue margins during the period. There was an increase in the Earnings before interest expense, tax, depreciation and amortization (EBITDA) by 5.6% to $2.2 million as compared to the previous corresponding period. There was also an increase in the basic earnings by 2.8% to 18.2 cents as compared to the prior corresponding period. The company declared an interim dividend of 8.0 cents per share, fully franked. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

During the period, the main focus of the company was on the business expansion which remains driving factor during the period as well as in the future financial year. The company during the period integrated its prior year business acquisitions which included the Magellan Travel Group, Flight Systems Group and Asia Escape Holidays as well as the Show Group business which it acquired in the current year. There was an increase in the Capital expenditure for the enhanced technology solutions of the future for its leisure and corporate travel customers. As of 31 December 2018, there was also an increase in the Trans-Tasman retail network to 2,233 members. The company won a New corporate account tender during the period which included the South Australian Government. There were new marketing initiatives taken by the company, where it launched the HelloWorld TV show. It also entered into first market platinum media partnership with News Corporation.

 After the completion of the rollout of the HelloWorld Travel rebranding initiative for the Australian retail business, the company expects the New Zealand rebrand to commence in the second half of FY19. There is a positive momentum leading into the second half of the FY2019. The company had already positioned itself for sustainable long-term growth. Based on the outcome of Helloworld Travel, the company has re-stated its earnings guidance for the EBITDA to lie between $76 million – $80 million for the current financial year. However, the guidance is subject to terms and conditions where there is no material and unexpected worsening in operating conditions or unforeseen material circumstances.

The balance sheet of HLO as of 31 December 2018, stated that there was an increase in the net asset base of the company as a result of a decrease in the total liabilities. There was also a decrease in the accumulated losses during the period. The total shareholders’ equity during the period was $ 308.151 million. There was a decrease in the cash and cash equivalent during the period as a result of increased cash outflow through the investing activities of the company to $130.123 million.

In the last six months, the stock has generated a positive return of 24.14%. By the end of the trading session on 18 February 2019, the closing price of the HLO stock was A$5.760, down by 7.097%. Today, the stock is trading at A$5.690, down 1.215% (as at 1:42 PM AEST, 19 February 2019) with a market capitalization of A$717.17 million and 124.51 million outstanding shares.


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