Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — FY2023 Earnings Presentation
22 slides from Helloworld Travel's earnings presentation, August 2023
Slide 1: Helloworld Travel Limited – Year Ended 30 June 2023
HELLOWORLD TR AVEL LIMITED AND CONTROLLED ENTITIES YEAR ENDED 30 JUNE 2023 ANDREW BURNES, AO – CEO MICHAEL SMITH – 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 corporate travel agency franchise and buying group networks in AU and NZ. • International and domestic leisure travel wholesaling. • Inbound tour operating in AU, NZ, and FJ. • Air ticket consolidation. • Online B2C travel. • Luxury tour operating in AU and interna
Slide 4: Financial highlights from FY23
Financial highlights from FY23 • Underlying EBITDA of $44.1 million compared to a $10.6 million underlying EBITDA loss in the prior year. • Total Transaction Value (TTV) of $2.57 billion (FY22: $1.08 billion); an increase of $1.49 billion or 138.5%. • Total revenue increased to $165.9 million (FY22:
Slide 5: TTV increased 138% YoY to $2,569 million
TTV increased 138% YoY to $2,569 million $124,102 $266,367 $238,809 $448,011 $560,960 $647,108 $596,248 $764,550 Helloworld Travel Limited - Investors Presentation FY23 5
Slide 6: Group results
Group results FY23 notes FY23 FY22 Change $000’s $000’s % • TTV more than doubling year-on- Total Transaction Value (TTV) 2,568,866 1,077,289 138.5% year (138% growth). Revenue from contracts with customers 160,884 63,534 153.2% Revenue margin % 6.3% 5.9% • Growth in revenue margin to 6.3% Other inc
Slide 7: Cash flow
Cash flow FY23 FY22 $000’s $000’s FY23 notes • Sale of 1.7 million CTD shares. Continuing operations 26,878 5,523 Discontinued operations - 3,897 • 12 cents in fully franked dividends Net operating cash flows 26,878 9,420 paid to shareholders in FY23. Transfers into term deposits (8,000) (6,000) Pur
Slide 8: Illustrative example of the BSP cycle
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 payable
Slide 9: Strong demand for travel continues
Strong demand for travel continues • Strong demand from travellers driven by the removal of border restrictions and increasing supply and capacity. • Agent network members have reported a very busy year and travellers understand the value of having a trusted advisor for their travel needs. • To help
Slide 10: Strong demand for travel continues
Strong demand for travel continues • Air capacity continues to recover; currently at approx. 75-85% of pre- COVID levels. Helloworld’s premium air sales have recovered faster than total air sales. • Recovery in inbound passenger numbers has been slower than outbound, with the majority of these arriv
Slide 11: Recent acquisitions
Recent acquisitions Express Travel Group • 100% stake acquired for $70 million. • Retail networks, wholesale operations and ticketing businesses in Australia and New Zealand. • Ticketing technologies transitioned to Helloworld systems in July 2023. Australiareiser Group • 34% stake in an Oslo based
Slide 12: Outlook for FY24
Outlook for FY24 • Underlying EBITDA guidance is in the range of $64-$72 million for FY24 full year, subject to no materially adverse impacts on our business. This includes contributions from recent acquisitions. • We expect continued growth in travel volumes during FY24, with FY25 to return to at l
Slide 13: Network members - The rise of the Trusted Advisor
Network members - The rise of the Trusted Advisor Helloworld’s agent and broker networks continue to positively respond to the growing travel demand and are a ‘trusted advisor’ to their clients 2,460 (incl ETG) | 2,064 at 30 June 2022 • Agencies and brokers in Helloworld’s networks have reported the
Slide 14: Delivering new technology solutions
Delivering new technology solutions • Throughout FY23 we continued to invest in our proprietary systems - our retail agency mid-office platform (‘ResWorld’), our wholesale and inbound systems (‘Mango’ and ‘Ready Rooms), and our Air Tickets booking engine (‘Smart Tickets’). • Now rolled out to over 6
Slide 15: Segment results - Australia
Segment results - Australia FY23 FY22 Change $m $m % Total Transaction Value (TTV) 2,147.0 951.1 125.8% Revenue and other income 117.0 52.9 121.2% Revenue margin % (1) 5.3% 5.1% Underlying EBITDA 32.9 (7.3) Underlying EBITDA margin % 28.1% (13.8%) (1) Revenue margin does not include interest income
Slide 16: Segment results - New Zealand
Segment results - New Zealand FY23 FY22 Change $m $m % Total Transaction Value (TTV) 391.0 115.3 239.2% Revenue and other income 21.1 6.0 249.4% Revenue margin % (1) 5.2% 4.3% Underlying EBITDA 7.3 (2.8) Underlying EBITDA margin % 34.7% (46.5%) (1) Revenue margin does not include interest income and
Slide 17: Segment results - Fiji
Segment results - Fiji FY23 FY22 Change $m $m % Total Transaction Value (TTV) 6.8 1.7 309.5% Revenue and other income 3.6 1.0 276.9% Revenue margin % (1) 52.8% 57.8% Underlying EBITDA 1.0 0.0 Underlying EBITDA margin % 26.0% n/a (1) Revenue margin does not include interest income and other income •
Slide 18: Segment results - Transport, Logistics and Warehousing
Segment results - Transport, Logistics and Warehousing FY23 FY22 Change $m $m % Gross revenues 24.0 9.3 159.0% Underlying EBITDA 2.9 (0.6) Underlying EBITDA margin % 12.2% (6.4%) • Entertainment Logistix is Australia’s largest provider of specialist transport and logistics services to the entertainm
Slide 19: Share trade activity
Share trade activity FY22 Annual Qantas Director Australiareiser Phil Hoffmann ETG Trading Report share sale Appointment Acquisition Travel Acquisition Acquisition Update (30 Aug 22) (8 Nov 22) (20 Jan 23) Announced Announced Announced (2 Aug 23) (21 Mar 23) (2 May 23) (22 Jun 23) Trading Director H
Slide 20: Appendix
Appendix Helloworld Travel Limited - Investors Presentation FY23
Slide 21: Company background information
Company background information A$2.71 A$420.0 mill. 155.0 mill. A$160.9 mill. Cash Share price Market capitalisation Shares on issue A$0.0 Debt at 30 June 2023 at 30 June 2023 Board and Management Team Non-Executive Director and Chairman – Garry Hounsell Garry was appointed to the Board as Chairman
Slide 22: Helloworld Travel Limited - Investors Presentation FY23
Helloworld Travel Limited - Investors Presentation FY23