Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — Investor Presentation (February 2024)
23 slides from Helloworld Travel's investor presentation, Feb 21, 2024
Slide 1: 1H FY24 Half Year Ended 31 December 2023
1H F Y24 H A L F Y E A R E N D E D 3 1 D E C E M B E R 2 0 2 3 ANDREW BURNES, AO – CEO MIKE SMITH – CFO HH eel ll ol o w wo o r lr dl d T Tr ar a v ve e l lL L im d d – –1 1 i ti et e im HHF 2Y 42 4I nI vn ev se tsot ro rP rPer se es ne tnat tai toi no n
Slide 2: Disclaimer
2 Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fair
Slide 3: Key metrics 1H FY24
3 Key metrics 1H FY24 UP UP $994 $18.4 TTV million Underlying EBITDA million $2.20 billion $34.0 million UP 82.3% UP 117.7% UP UP $14.4 $39.1 NPAT million Total Revenue million $16 million $112.3 million UP 902.9% UP 53.4% ➢ Earnings per share of 10.1 cents, up from 0.9 cents (+1022.2%). ➢ Interim d
Slide 4: Financial highlights 1H FY24
4 Financial highlights 1H FY24 • Underlying EBITDA $34.0 million compared to $15.6 million in the prior corresponding period (pcp) (+117.7%). • Total Transaction Value (TTV) of $2.20 billion (pcp: $1.21 billion); up $994 million (+82.3%). • Total revenue of $112.3 million (pcp: $73.2 million); up $3
Slide 5: 1H FY24 reflects HLO's strong recovery post COVID
5 1H FY24 reflects HLO’s strong recovery post COVID 1H FY21 (i) 1H FY22 (i) 1H FY22 (ii) 1H FY23 1H FY24 • Continuing to execute HLO’s post COVID recovery strategy TTV $432.9m $694.3m $390.5m $1,208.1m $2,202.1m • Successful integration of the Total revenue $47.5m $46.1m $29.2m $73.2m $112.3m ETG bu
Slide 6: TTV increased 82% to $2.2 billion in 1H FY24
6 TTV increased 82% to $2.2 billion in 1H FY24 Total Transaction Value (TTV) ($000's) $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY23 FY24 $560,960 $647,108 $596,248 $764,550 $1,232,236 $969,843 Hellowor
Slide 7: HLO Operations AU, NZ, FJ
7 HLO Operations AU, NZ, FJ • Retail and corporate travel agency franchise and buying group networks • International and domestic leisure travel wholesaling • Inbound tour operating in Australia, New Zealand and Fiji • Air ticket consolidation • Luxury tour operating in AU and international • Major
Slide 8: Group results
8 Group results 1H FY24 1H FY23 Change 1H FY24 notes $000’s $000’s % Total Transaction Value (TTV) $2,202,079 $1,208,068 82.3% • Continued strong growth in TTV (up 82% on Revenue from contracts with customers $108,165 $71,295 51.7% pcp). Revenue margin % 4.9% 5.9% • Decline in the revenue margin att
Slide 9: Cash flow
9 Cash flow 1H FY24 1H FY23 $000’s $000’s 1H FY24 notes Receipts from customers $1,770,920 609,427 • Operating cash flow impacted by 1H Payments to suppliers & employees ($1,760,653) ($629,147) Interest received cash generation being seasonally $2,831 $1,005 Interest paid ($583) ($380) lower than 2H
Slide 10: Business highlights 1H FY24
10 Business highlights 1H FY24 • Integration of Express Travel Group (ETG) now finalised, efficiencies achieved across both businesses with integration of technologies and core functions. • Retail – Performing strongly in Australia due to high demand for professional travel services in leisure and c
Slide 11: Continued growth in travel demand
11 Continued growth in travel demand • Strong demand for travel continues, and the need for travel agent services to support travellers in the planning, booking and delivery of their travel experiences continues to grow. • The Helloworld Travel Academy (launched in July 2022) has now had just under
Slide 12: HLO technology capability continues to grow
12 HLO technology capability continues to grow • Continued focus and investment in technology enhancements and developments across the business. • HLO’s proprietary mid-office system ResWorld continues to expand. • Over 730 retail consultants in Australia and New Zealand using the system. • Launchin
Slide 13: Outlook for FY24
13 Outlook for FY24 • Helloworld reaffirms guidance to achieve underlying EBITDA of $64-$72 million for FY24, subject to no material adverse change in operating conditions. • The business has no external borrowings and strong liquidity. All recent acquisitions have been funded from internal resource
Slide 14: Air travel will continue to be in high demand in 2024
14 Air travel will continue to be in high demand in 2024 In Australia and New Zealand, we are seeing an increase in demand and airlines are responding by increasing capacity. • Emirates – increasing capacity from Perth and Brisbane and relaunched daily flights from Adelaide. • Qantas Airways – added
Slide 15: The continued value of the Trusted Advisor
15 The continued value of the Trusted Advisor Helloworld’s agent and broker networks in Australia and New Zealand continue to be highly valued amidst strong travel demand. 2,400 agents & brokers as at 31 December 2023 Helloworld Travel Limited – 1HFY24 Investor Presentation
Slide 16: Segment results – Australia
16 Segment results – Australia 1H FY24 1H FY23 Change $m $m % Total Transaction Value (TTV) $1,839.3 $1,017.7 80.7% Revenue and other income $82.8 $53.4 55.2% Revenue margin % (1) 4.3% 5.1% Underlying EBITDA $26.4 $12.1 118.5% Underlying EBITDA margin % 31.9% 22.7% (1) Revenue margin does not includ
Slide 17: Segment results – New Zealand
17 Segment results – New Zealand 1H FY24 1H FY23 Change $m $m % Total Transaction Value (TTV) $352.8 $177.8 98.4% Revenue and other income $20.7 $8.8 136.1% Revenue margin % (1) 5.6% 4.8% Underlying EBITDA $7.1 $2.3 212.0% Underlying EBITDA margin % 34.5% 26.1% (1) Revenue margin does not include in
Slide 18: Segment results – Fiji
18 Segment results – Fiji 1H FY24 1H FY23 Change $m $m % Total Transaction Value (TTV) $3.4 $3.1 11.5% Revenue and other income $2.0 $1.6 24.6% Revenue margin % (1) 57.8% 51.5% Underlying EBITDA $0.4 $0.4 8.7% Underlying EBITDA margin % 21.9% 25.1% (1) Revenue margin does not include interest income
Slide 19: Segment results – Transport, Logistics & Warehousing
19 Segment results – Transport, Logistics & Warehousing 1H FY24 1H FY23 Change $m $m % Gross revenues $6.6 $9.4 -30.5% Underlying EBITDA $0.04 $0.8 -95.9% Underlying EBITDA margin % 0.5% 9.0% • Entertainment Logistix is Australia’s largest provider of specialist transport and logistics services to t
Slide 20: Company background information
20 Company background information A$2.43 A$386.7 mill. 159.2 mill. A$134.9 mill. Cash Share price Market capitalisation Shares on issue A$0.0 Debt Board and Management Team at 31 December 2023 at 31 December 2023 Non-Executive Director and Chairman – Garry Hounsell Garry was appointed to the Board a
Slide 21: Share price movement
21 Share price movement Director Australiareiser Phil Hoffmann Trading Annual Finalisation Appointment Acquisition Travel Acquisition Update General of ETG (20 Jan 23) Announced Announced (2 Aug 23) Meeting Acquisition (21 Mar 23) (2 May 23) (25 Oct 23) (2 Jan 24) H1FY23 Trading ETG ETG FY23 Annual
Slide 22: Illustrative example of the BSP cycle
22 Illustrative example of the BSP cycle • The timeline above presents the Billing and Settlement Plan (“BSP”) cycle associated with the sale of airline tickets, a major part of Helloworld’s operations. • Helloworld’s accounting system automatically recognises a receivable due from agents and a paya
Slide 23: Thank you
THANK YOU HH eel ll ol o w wo o r lr dl d T Tr ar a v ve e l lL L im d d – –1 1 i ti et e im HHF 2Y 42 4I nI vn ev se tsot ro rP rPer se es ne tnat tai toi no n
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