Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — H1 FY2022 Earnings Presentation
23 slides from Helloworld Travel's earnings presentation, February 2022
Slide 1: Helloworld Travel Limited
HELLOWORLD TRAVEL LIMITED ANDREW BURNES AO – CEO DAVID HALL – CFO
Slide 2: Disclaimer
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 fairne
Slide 3: Our travel operations
Our travel operations • Retail and business travel agency networks • Corporate travel management • Leisure travel wholesaling • Inbound tour operating • Air Ticket consolidation • Online B2C • Tour operating • Event freight services Helloworld Travel Limited Half Year Report 3
Slide 4: Key Highlights
Key Highlights • Half year statutory loss after tax of $14.0 million. • Revenue growth due to relaxation of border controls and stringent cost control minimised losses in the half with an EBITDA loss of $5.2 million. • In HY22, HLO achieved $694.3 million in total transaction value driven by progres
Slide 5: CTM transaction
CTM transaction • On 15 December 2021, Helloworld announced that it had entered into a binding agreement to divest its corporate and entertainment travel business in Australia and New Zealand to ASX listed entity, Corporate Travel Management (ASX:CTD) for an enterprise value of A$175 million compris
Slide 6: Performance highlights
Performance highlights • TTV grew 60.4% on the same period last year. • Tight cost controls kept losses to a minimum. • Continued improvements to technology suite resulting in improved customer outcomes, cost reductions and enhanced capabilities. • Major refund and travel credit operation undertaken
Slide 7: TTV increased 60.4% to $694.3 million in 1H22
TTV increased 60.4% to $694.3 million in 1H22 Total Transaction Value (TTV) 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY22 FY21 • Quarter 1 impacted by the almost total lockdown across Aus
Slide 8: HY22 Group Results (31 December 2021)
HY22 Group Results (31 December 2021) HY22 HY21 Change Dec 21 ($’m) Dec 20 ($’m) ($) Total Transaction Value (TTV) (1) 694.3 432.9 261.4 Revenue (2) 40.3 27.8 12.5 HY22 NOTES Other Income (3) 5.8 19.7 (13.9) (1) TTV growth 60.4%. Total Revenue and other income 46.1 47.5 (1.4) (2) Revenues grew 45.2%
Slide 9: HY22 Cash Flow (31 December 2021)
HY22 Cash Flow (31 December 2021) HY22 HY21 Dec 21 ($’m) Dec 20 ($’m) • Monthly net operating cash outflows maintained at circa $1.5m. Net cash used in operating activities (26.1) (8.9) • Net operating cash outflow also reflects reduction in client cash (refunds and supplier payments), timing of ove
Slide 10: Travel poised for rapid return in CY22
Travel poised for rapid return in CY22 • Australia’s international borders will reopen to international tourists from today (21 February 2022). • New Zealand borders to commence re-opening from late February 2022 through to August 2022. • WA border to re-open from 3 March 2022. • Across both Austral
Slide 11: Network members
Network members HLO agent networks showing steadfast resilience and maintaining a strong presence for expected travel demand 2,168 at 31 DECEMBER 2021 | 2,274 31 DECEMBER 2020 • Retail agencies in HLO’s networks have remained steadfastly resilient with a strong • A number of agents have chosen to cl
Slide 12: Best of breed technology solutions
Best of breed technology solutions • HLO has reduced its operational capacities in line with COVID-19 impacts however we have continued to invest in further development of our core technologies throughout HY22. • ResWorld, HLO’s retail mid-office system, continues to become the go to mid-office syst
Slide 13: HLO well placed to handle significant TTV and revenue growth
HLO well placed to handle significant TTV and revenue growth while achieving greater economies of scale • Forecasts not provided since the onset of COVID-19 in February 2020 due to the uncertainties around the opening and closure of domestic and international borders. • Opening of Australia’s Intern
Slide 14: Business focus
Business focus HLO Corporate Travel Businesses • HLO’s corporate travel businesses comprise QBT, AOT Hotels, TravelEdge, Show Travel, Show Freight, APX (NZ) and Atlas Travel (NZ). • On 15 December 2021, Helloworld announced that it had entered into a binding agreement to divest its corporate and ent
Slide 15: Business focus
Business focus Partnership renewals • HLO renewed its partnership with Qantas with a new three year commercial agreement in FY21 to sell the national carriers flights. This contract, which carries through until June 30 2023, provides commercial certainty for HLO and its agency networks and allows th
Slide 16: Business focus
Business focus HLO Leisure Wholesale Businesses • CruiseCo acquisition in FY21 – the cruise wholesaling specialist is now fully integrated with HLO’s existing cruise wholesale business, Seven Ocean Cruising enabling creation of new offerings and improved experiences for agents and consumers. • Cruis
Slide 17: Segment Results - Australia
Segment Results - Australia HY22 HY21 Change Dec ‘21 Dec ‘20 $m $m % • TTV was up 68.6% driven by the progressive release of State Border controls. Total Transaction Value (TTV) 638.5 378.6 68.6 • Revenues up 53.2% specifically in our retail operations TTV was up 177%. Revenue 38.0 24.8 53.2 • Reven
Slide 18: Segment Results – New Zealand
Segment Results – New Zealand HY22 HY21 Change Dec ‘21 Dec ‘20 $m $m % • TTV rose 2.8% on the comparative half and was down Total Transaction Value (TTV) 55.8 54.3 2.8 89% on 1H20. • Restructuring on the NZ operations was completed Revenue 2.2 2.9 (24.1) during HY21 which reduced future operating co
Slide 19: Segment Results – Rest of the World
Segment Results – Rest of the World HY22 HY21 Change Dec ‘21 Dec ‘20 $m $m % • Starting to see increased business into our Fijian Total Transaction Value (TTV) - - - operations but the impact on the first half was negligible. Revenue and Other Income - - - • Personnel in Fiji continue to provide dat
Slide 20: Liquidity and funding
Liquidity and funding Liquidity Dec-21 Jun-21 Change $m $m $m Total cash 87.6 131.0 (43.4 ) • At 31 December 2021, the Group’s cash balance was $87.6 million. Drawn debt (71.0) (81.0) 10.0 Net cash 16.6 50.0 (33.4) • Facilities aligned to March 2023. • During the current half a pre-payment of $10 mi
Slide 21: Appendix
Appendix
Slide 22: Company background information
Company background information A$2.51 A$389.1M 155.0M A$87.6M Cash Share Price at Market Cap at Shares on issue A$71.0M Debt 31 December 2021 31 December 2021 Board and Management Team Non-Executive Director and Chairman - Garry Hounsell Garry was appointed to the Board as Chairman on 4 October 2016
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