Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — H1 2015 Earnings Presentation
24 slides from Helloworld Travel's earnings presentation, February 2015
Slide 1: helloworld 2015 Half Year Results
helloworld 2015 Half Year Results
Slide 2: CEO
aes Gaines CEO
Slide 3: Half year highlights: TTV, Adjusted EBITDAI, loss before tax
• Total Transaction Value (TTV) of $2.3 billion • Adjusted EBITDAI (1) of $10.6 million • Loss before tax of $0.2m, up 95% from 1H14 • Positive momentum continues (1) Adjusted EBITDAI is earnings before interest expense, tax, share-based payments, defined benefit expense, depreciation, amortisation
Slide 4: Profiling our brand
Profiling our brand Product aligned with Agents’ & Consumers’ needs Training to promote trust and traction Investing in Omni-channel strategy to secure future growth Increased profitability for Wholesale and Travel Management 2
Slide 5: Brand awareness more than doubled
• Brand awareness more than doubled, driven by marketing investment in helloworld • Succeeded in our goal of creating bricks and mortar network of high-calibre agents • Store transformations continue apace 3
Slide 6: helloworld brand awareness has grown substantially
30% • helloworld brand awareness has grown substantially 25% • In November 2014, 1 in 4 20% Australian Travellers were aware of 15% the brand representing a significant 10% increase from April 2014, when 1 in 10 Australian Travellers were 5% aware of the brand 0% Apr-14 Nov-14 1. Surveys were conduc
Slide 7: Delivering for our Agents
• Delivering for our Agents across our Franchise, Associate and Affiliate models is our priority 5
Slide 8: Store refresh and Ambassador store rollout
• Refresh of helloworld stores now complete • Ambassador store rollout continues, with 32 stores now complete and 30 to be completed by the end of 2015 Images of helloworld Ambassador store Fountain Gate (VIC) 6
Slide 9: Covermore selected as sole preferred travel insurance provider
• Covermore selected as sole preferred provider of travel insurance product • Consolidated supply and support of vital higher margin product • Flexibility and capability to better meet consumer needs and enhance sales of agents 7
Slide 10: Ensuring consumers value and trust us
• Ensure consumers continue to value and trust us: • Profiling our agents’ and network’s expertise and experience • helloYou customer service training rolling out nationwide hello You • Further building on our engagement • Overwhelmingly positive sentiment from close to 1,000 Owners, Managers and fr
Slide 11: Investing in technology: helloworld.com.au
• Investing in technology to drive productivity and profitability • Sustained investment in building helloworld.com.au: • TTV growth of 155% from July 14 to Dec’ 14 • Broader product options and enriched consumer experience • Across mobile, tablet and desktop devices • Initial investment has impacte
Slide 12: Travel Management and Wholesale
Travel Management Wholesale • Adjusted EBITDAI improved • Adjusted EBITDAI improved 229% on pcp to $1.8M 81% on pcp to $3.8M • QBT appointed sole provider • Rebranding of our Asia of travel management to specialist, Travel Indochina, Whole of Australian to Insider Journeys better Government (WoAG) D
Slide 13: Outlook and guidance
• Focus on maintaining momentum of helloworld’s growing brand presence, topline growth and increased profitability • Forecast results reflect on-going investment in marketing, building helloworld.com.au and subdued consumer sentiment in Australia • Combined factors see the Group currently tracking t
Slide 14: Omni-channel platform for future growth
Confident that we have a strong platform for future growth supported by targeted omni-channel strategy • Will continue to evaluate different distribution channels and monitor trends for future opportunities • Will achieve growth through continued investment in targeted marketing to drive increased t
Slide 15: Slide 15
Slide 16: Group financial results 1H15
1H15 1H14 Change $m $m % Total Transaction Value (TTV) 2,307.5 2,524.9 -9% Revenue 139.5 151.5 -8% Operating Expenditure (128.8) (132.5) 3% Adjusted EBITDAI (1) 10.6 19.0 -44% Loss before tax (0.2) (3.9) 95% Loss after tax (0.7) (4.7) 84% Basic loss per share (0.17) cents (1.06) cents 84% Diluted lo
Slide 17: Retail segment results
1H15 1H14 Change $m $m % Total Transaction Value (TTV) 1,724.2 1,861.8 -7% Revenue 80.4 86.9 -7% Operating expenses (64.1) (58.3) -10% Adjusted EBITDAI 16.3 28.5 -43% • TTV and revenue decline of 7% reflects the reduction in the network of 8% compared to Dec 2013 • Like for like basis, TTV increased
Slide 18: Travel Management segment results
1H15 1H14 Change $m $m % Total Transaction Value (TTV) 282.4 283.0 0% Revenue 18.9 18.1 4% Operating expenses (17.2) (19.4) 11% Adjusted EBITDAI 1.8 (1.4) 229% • Travel management traded profitably in 1H15 with revenue margin increasing from 6.4% to 6.7% • Stable TTV reflects a focus on customer ret
Slide 19: Wholesale segment results
1H15 1H14 Change $m $m % Total Transaction Value (TTV) 300.9 380.1 -21% Revenue 38.3 43.8 -13% Operating expenses (34.4) (41.8) 18% Adjusted EBITDAI 3.8 2.1 81% • Wholesale segment has shown strong improvement in EBITDAI compared to 1H14 • 1H14 includes 3 months’ trading for the ATS inbound business
Slide 20: Balance sheet
Dec 14 Jun 14 $m $m Cash 138.6 184.3 Other current assets 97.6 105.6 Intangible assets 362.5 360.5 Other non-current assets 30.3 32.9 Current Liabilities (221.6) (279.8) Non-current Liabilities (27.7) (26.5) Equity 379.7 377.0 18 20
Slide 21: Debt facilities and cash
Dec 14 Jun 14 $m $m Total Facility available 96.7 96.4 Drawn Debt (25.6) (25.3) Multi-option Facilities (incl. bank guarantees) (10.3) (9.9) Headroom 60.8 61.2 Company cash 28.3 28.5 Client cash 110.3 155.8 Total cash 138.6 184.3 • Operating cash outflow for 1H15 of $43m in line with seasonal trends
Slide 22: Appendices
helloworld Appendices
Slide 23: Adjusted EBITDAI reconciliation to loss before tax
1H15 1H14 $m $m Adjusted EBITDAI (1) 10.6 19.0 Profit/(Loss) on disposal of investments 0.3 (5.4) Business transformation costs (1.0) (9.2) Share based payments and defined benefit expense (0.9) (0.9) Costs relating to GST matter (0.5) (0.2) CEO resignation costs (0.2) - EBTIDAI 8.3 3.3 Depreciation
Slide 24: Thank you
helloworld Thank you