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Highlights
- Helloworld is an Australian-based retail, wholesale and corporate travel firm
- In July-September quarter, total household wealth increased by 7% YoY to AUD 15.3 trillion
- The company is expected to release its half yearly financial results on 12 February 2024
Helloworld Travel Limited (ASX:HLO) is an ASX-listed travel distribution firm based in Australia. The company is engaged in selling international and domestic travel services and products. In the financial year 2023 (FY23), the company witnessed 139.5% YoY growth in its revenue and other income to AUD 165.9 million, underpinned by a surge in commission margin.
During the reported period, underlying EBITDA grew to AUD 44.1 million, compared to a negative AUD 10.6 million in FY22.
Key drivers
On 21 December 2023, the Australian bureau of Statistics (ABS) released the household wealth data for the July-September quarter. During the stated period, total household wealth was AUD 15.3 trillion, 7% higher than the previous year, and 2.3% higher than the previous quarter.
In September, household wealth surged for the fourth straight quarter, backed by dwellings and residential land, which contributed 1.7 percentage points to the growth. Household wealth in the stated quarter grew despite increased interest rates as house prices headed north.
The household data bodes well for the companies in the services sector. HLO being a travel services provider, could benefit from the surge in household wealth in the September quarter.
Recent update
Through an ASX update dated 2 January 2024, the company informed about the conclusion of the second tranche of the equity issuance to fund the purchase of Express Travel Group. As part of the second tranche, 1, 823,998 shares were issued and AUD 14.2 million in cash was paid to finalize the transaction.
Through an ASX-release, the company also shared its plan to release its first half financial results on 12 February 2024.
Outlook
In FY24, the company expects more passengers to travel and by FY25, it expects travel demand to return to at least FY19 levels.
In the fourth quarter of FY24, it plans to introduce a new luxury travel option, with an improved Ultimate Journeys range and exclusive premium hotels with certain packages geared for significant networks.
The expected range of underlying EBITDA in FY24 is AUD 64-72 million.
Share performance of HLO
Shares of HLO closed 2.608% down at AUD 2.240 apiece on 08 January 2024. With this, HLO’s share price has increased by 45.45% in the last one year and has dropped by 10.40% in the last one.
The 52-week high of HLO is AUD 3.29, recorded on 29 August 2023, while the 52-week low is AUD 1.31, recorded on 3 January 2023.
HLO Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 8 January 2023. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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