Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — FY2024 Earnings Presentation
28 slides from Helloworld Travel's earnings presentation, August 2024
Slide 1: Investor Presentation FY24
INVESTOR PRESENTATION FY24 ANDREW BURNES, AO CEO & Managing Director MIKE SMITH Chief Financial Officer Helloworld Travel Limited • Results Announcement 2024 | Page 1
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: Agenda
AGENDA ➢ FINANCIAL HIGHLIGHTS ➢ BUSINESS HIGHLIGHTS ➢ S EG M E N T R ES U LTS ➢ OUTLOOK ➢ APPENDIX Helloworld Travel Limited • Investor Presentation FY24 | Page 3
Slide 4: Presenters
PRESENTERS ANDREW BURNES, AO CEO & Managing Director MIKE SMITH Chief Financial Officer Helloworld Travel Limited • Investor Presentation FY24 | Page 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Helloworld Travel Limited • Investor Presentation FY24 | Page 5
Slide 6: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS UNDERLYING UNDERLYING TTV REVENUE EBITDA EBITDA up 62.5% up 37.5% up 52.9% MARGIN to $4.2b to $228.2m to $67.5m of 30.0% (FY23: $2.6b) (FY23: $165.9m) (FY23: $44.1m) (FY23: 26.6%) PROFIT AFTER EARNINGS PER FINAL FULL YEAR TAX SHARE DIVIDEND DIVIDEND up 60.2% 19.2 cents 6.0
Slide 7: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS Total Transactional Value (TTV) increased to $4.2 billion, up 62.5% or $1.6 billion on the prior year. Revenue growth of 37.5% year-on-year to $228.2 million in FY24. Underlying EBITDA is $67.5 million, an increase of $23.3 million compared with the prior year, up 52.9%. Un
Slide 8: TTV Increased 62.5% to $4.2 Billion
T TV INCREASED 62.5% TO $4.2 BILLION Helloworld Travel Limited • Investor Presentation FY24 | Page 8
Slide 9: Group Results
GROUP RESULTS FY24 FY23 Change KEY OUTCOMES 000’s 000’s % ➢ Continued strong growth in TTV (up 62.5% on pcp). Total Transaction Value (TTV) $4,173,327 $2,568,866 62.5% Revenue from contracts with customers $216,860 $160,884 34.8% ➢ Revenue margin decrease attributable to Revenue margin % 5.2% 6.3% t
Slide 10: Cash Flow
CASH FLOW FY24 FY23 KEY OUTCOMES 000’s 000’s ➢ Strong operating cash flow in 2H (with Receipts from customers $2,888,549 $1,287,946 2H cash generation being seasonally Payments to suppliers & employees ($2,826,552) ($1,263,693) higher than 1H). Interest received $5,896 $3,193 ➢ 11.0 cents in fully f
Slide 11: Balance Sheet
BALANCE SHEET 30 Jun 2024 30 Jun 2023 000’s 000’s KEY OUTCOMES ➢ Strong liquidity position with significant cash reserves Cash $161,877 $160,888 and no bank debt. Trade and other receivables $56,195 $42,744 Accrued revenue $28,369 $29,311 ➢ Cash includes $48.9m of restricted cash (2023: Other curren
Slide 12: Business Highlights
BUSINESS HIGHLIGHTS Helloworld Travel Limited • Investor Presentation FY24 | Page 12
Slide 13: Business Highlights FY24
BUSINESS HIGHLIGHTS FY24 ➢ Retail – Continues to perform strongly in Australia and New Zealand due to the ongoing high demand for the services and expertise of a professional travel advisor in making travel arrangements. ➢ Wholesale – Viva Holidays celebrates its 50th year and received the National
Slide 14: Technology
TECHNOLOGY ➢ Throughout FY24 Helloworld continued to invest in technology and innovation across its proprietary systems, to improve overall network functionality, operational efficiency and productivity. ➢ This investment includes the Company’s in-house retail mid-office solution, Resworld. Currentl
Slide 15: Demand for Travel Advisors
DEMAND FOR TRAVEL ADVISORS ➢ The services of a travel advisor have never been more highly valued or in demand. ➢ Due to the geographic location of Australia and New Zealand, it is common for international leisure travel to have increased complexity and include multiple destinations and multiple expe
Slide 16: Segment Results
SEGMENT RESULTS Helloworld Travel Limited • Investor Presentation FY24 | Page 16
Slide 17: Segment Results - Australia
SEGMENT RESULTS - AUSTRALIA FY24 FY23 Change $m $m % Total Transaction Value (TTV) 3,448.3 2,147.0 +60.6% Revenue and other income 168.1 117.0 +43.6% Revenue margin % 4.6% 5.3% Underlying EBITDA 52.1 32.9 +58.2% Underlying EBITDA margin % 31.6% 28.1% KEY OUTCOMES ➢ TTV grew by 60.6% to $3.45 billion
Slide 18: Segment Results - New Zealand
SEGMENT RESULTS - NEW ZEALAND FY24 FY23 Change $m $m % Total Transaction Value (TTV) 701.5 391.0 +79.4% Revenue and other income 39.2 21.1 +85.6% Revenue margin % 5.4% 5.2% Underlying EBITDA 13.4 7.3 +83.0% Underlying EBITDA margin % 34.3% 34.7% KEY OUTCOMES ➢ New Zealand performed strongly with TTV
Slide 19: Segment Results - ROW
SEGMENT RESULTS - ROW FY24 FY23 Change $m $m % Total Transaction Value (TTV) 6.7 6.8 -1.3% Revenue and other income 3.9 3.6 +6.9% Revenue margin % 55.9% 52.8% Underlying EBITDA 0.8 0.9 -13.4% Underlying EBITDA margin % 21.1% 26.0% KEY OUTCOMES ➢ Fiji results in FY24 remained consistent with the prio
Slide 20: Segment Results - Transport, Logistics & Warehousing
SEGMENT RESULTS - TRANSPORT, LOGISTICS & WAREHOUSING FY24 FY23 Change $m $m % Gross revenues 17.1 24.2 -29.3% Underlying EBITDA 1.2 2.9 -60.4% Underlying EBITDA margin % 6.8% 12.2% KEY OUTCOMES ➢ Entertainment Logistix is Australia’s largest provider of specialist transport and logistics services to
Slide 21: Outlook
OUTLOOK Helloworld Travel Limited • Investor Presentation FY24 | Page 21
Slide 22: Outlook
OUTLOOK ➢ At the end of FY24 travel numbers in and out of Australia are at 90-100% of FY19 levels, and just slightly lower in New Zealand at 85-95% of FY19. ➢ The outlook for Helloworld is positive. The Company’s diversified business model allows it to remain focused on growing TTV at profitable mar
Slide 23: Appendix
APPENDIX Helloworld Travel Limited • Investor Presentation FY24 | Page 23
Slide 24: HLO Operations
HLO 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 Australia, New Zealand and Fiji ➢ Air ticket consolidation ➢ Luxury tour operating in AU and international ➢ Major
Slide 25: Retail Networks
RETAIL NETWORKS ➢ Total agency and broker numbers across Australia and New Zealand are now over 2,700 including over 530 franchisees, over 1,500 agencies in our buying groups and over 650 members of our broker business networks. ➢ Across Helloworld’s agency and broker networks, there are over 10,000
Slide 26: Example of the BSP Cycle
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 owing to the
Slide 27: Company Background Information
COMPANY BACKGROUND INFORMATION BOARD AND MANAGEMENT TEAM ➢ Non-Executive Director and Chairman – Garry Hounsell A$2.20 161.0 million Garry was appointed to the Board as Chairman on 4 October 2016 and has extensive Director Share price at experience on a wide range of highly successful Boards includi
Slide 28: Thank You
INVESTOR PRESENTATION THANK YOU Helloworld Travel Limited • Results Announcement 2024 | Page 28 Helloworld Travel Limited • Investor Presentation FY24 | Page 28