Helloworld Travel (ASX: HLO) expects up to 63% growth in FY24 EBITDA

4 min read | December 18, 2023 02:46 PM AEDT | By Team Kalkine Media

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Helloworld Travel (ASX: HLO) expects up to 63% growth in FY24 EBITDA — Image source: NicoElNino, Shutterstock.com

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Highlights

Helloworld is an international travel company that offers domestic and international travel products and services globally

The data by ABS indicated that the jobs in tourism-related industries has increased by 37,200 in the September quarter

In FY24, the company expects to deliver underlying EBITDA of AUD 64-72 million

Helloworld Travel Limited (ASX:HLO) is a travel product distribution firm based in Australia. The core business activities of the firm include the sale of international and domestic travel products and services.

In the financial year 2023 (FY23), the company registered a 138.5% YoY increase in the total transaction value (TTV) to AUD 2.57 billion. Total revenue and other income from continuing operation surged to AUD 165.9 million in FY23, up by 139.5% over the previous corresponding period. The revenue growth was backed by a surge in the commission margin.

During the reported period, EBITDA from continuing operations reached AUD 44.1 million, compared to negative AUD 10.6 million in FY22.

Recent business update

Through an ASX-filing, the company shared that Cinzia Burnes, a director of the company has sold 2 million HLO shares for consideration of AUD 4.8 million on 1 December 2023.

Growth prospects

On 15 December 2023, the Australian Bureau of Statistics (ABS) released the jobs data for tourism-related industries for the quarter ended 30 September 2023. The data highlighted that during the quarter, jobs in tourism-related industries increased by 14.9% YoY to 37,200.

During the quarter, In the cafes, restaurants and takeaways, the jobs surged by 8,500 jobs while in thee travel agency and information centre services, the jobs increased by 6,200 jobs. The data reflected that the Australian tourism industry gas been gaining momentum after witnessing significant decline during COVID-19.

In 2022-23, gross domestic product of tourism sector grew by 60.1% to AUD 57.1 billion in chain value terms and tourism sector’s contribution to the country’s GDP grew by 2.5%.

Outlook

In FY24, the company expects underlying EBITDA of AUD 64 – 72 million. This figure includes the contributions from the recent acquisitions, and also assumes that there is no significant adverse impact on the firm.

Share performance of HLO

Shares of HLO closed 1.28% up at AUD 2.41 apiece on Monday (18 December 2023). With this, HLO share price has increased by 78.52% in the last 12 months and has dropped by 18.035% in the last three months.

The 52-week high of HLO is AUD 3.29, recorded on 29 August 2023, while the 52-week low is AUD 1.3, recorded on 21 December 2022.

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 18 December 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

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