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HelloWorld Travel Limited (ASX:HLO) is preparing for an investor presentation today in Sydney to be provided by HLOâs Managing Director and CEO, Mr. Andrew Burnes and the HLO Executive Management Team.
Headquartered in Australia, HelloWorld Travel Ltd is leading travel distributer of domestic and international travel products and services.The business segment spreads across Retail Networks & ticketing, Wholesale, Inbound and Corporate. Its product line includes retail travel networks, air ticket consolidation, Wholesale travel services, corporate travel management services, and other online operations.
The company was formed in 2008 out of the merging of Harvey World Travel, Travelscene, Jetset, and Travelworld. Later in 2016, a merger occurred with the AOT Group to form HelloWorld Travel in 2017. The organization has a dynamic global presence with its integrated travel solutions across all the length and breadth of the industry.
The company completed several significant acquisitions across the year with the Magellan Travel Group, Flight Systems Pty Ltd and Asia Escape Holidays to enhance its market presence, business capabilities, technology base, and customer service. It has also entered major deals with cruise data manager the Cruise Factory, wholesaler Seven Seas Cruising, home-based travel agency MTA
The companyâs business showed strong resilience over the past few years and robust revenue growth in FY 2018, with the retail segment being the top performer, contributing around 42% to the revenue, and wholesale, inbound and corporate segments contributing about 28%, 11%, and 19% respectively. 77% of $326.9, million is contributed by Australia.
The companyâs EBITDA performance represents a retail sector contribution of 44% and wholesale, inbound and corporate segments contributing around 21%, 17%, and 18% respectively. 89% of $65.2 million EBITDA in FY 2018 is contributed by Australia.
The company has also effectively managed to attain synergies in its operations with $260 million in FY 2018 as compared to $294 million in FY 2016, a decrease of almost 13% in two years.
The company has reported 11.4% drop in technology, communication and property costs since AOT merger.
The companyâs current initiatives are targeted at maximization of cash returns, payment efficiencies, continued centralization and standardization of processes. Moreover, it is looking forward to property consolidation to derive further savings opportunities. Business integration will be a crucial focus for the company in acquiring similar businesses through M&A. They are working on the cybersecurity front for the integrity of systems to prevent intentional, robotic and other forms of attacks for a better security network. Business development plans for future also include branding, network expansion, data-driven marketing, improved remuneration model for its agents cost reduction & leverage and developing and delivering enhanced technologies
The companyâs stock performance has been very impressive over the last three years. It has consistently maintained an uptrend from $2.50 in Dec 2015 to currently trading at around $6.00. The company has a market capitalization of $758.3 million with 124.5 million shares outstanding. The stock is reflecting strong YTD return of 17.60%.
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