Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — Jetset Travelworld Group — H1 FY2009 Earnings Presentation
14 slides from Helloworld Travel's earnings presentation, 2009
Slide 1: Investor Briefing: Results for the Half Year Ended 31 December 2008
Investor Briefing For personal use only Results for the Half Year Ended 31 December 2008 In this presentation: JTG means Jetset Travelworld Group JTW means Jetset Trvelworld Limited QH means Qantas Holidays Limited QBT means QBT Pty Ltd
Slide 2: First Half Highlights
First Half Highlights For personal use only • Total transaction value (TTV) of $1,333 million • Profit before tax of $23.0 million • Cash holding $166.4 million with no debt • Fully franked interim dividend of 5 cents per share • Progress on key strategies • Headcount reduced 9% and overhead cost re
Slide 3: Financial Summary
Financial Summary For personal use only Qantas Jetset Qantas Business Consolidated Travelworld Holidays Travel JTG $000 $000 $000 $000 Dec 08 Dec 08 Dec 08 Dec 08 TTV 458,467 310,739 564,676 1,333,882 Revenue 17,688 40,577 23,973 82,239 EBITDA 10,980 7,524 2,662 21,166 Profit before related income t
Slide 4: Financial Summary Notes
Financial Summary Notes For personal use only • Results reflect QH only for the period 1/7/08 to 24/7/08 and the combined results of QH, QBT and JTW for the period 25/7/08 to 31/12/08 – JTW TTV 1/7/08 to 24/7/08 $76.8 million – JTW PBT 1/7/08 to 24/7/08 $0.9 million before transaction related abnorm
Slide 5: Key Drivers
Key Drivers For personal use only • Lower than expected volumes as a result of • Economic crisis – Lack of consumer confidence – Lower discretionary spending • Weaker Australian dollar – Depreciated by 30% since August 2008 – Overseas holidays become more expensive • Foreign exchange losses on payme
Slide 6: Wholesale – QH and Viva! Holidays
Wholesale – QH and Viva! Holidays For personal use only • New/renewed long-term agreements with large customers • Viva! Holidays showing very positive results (TTV growth of 18% over pcp) • Increased support from JTW retail network • Strong marketing and sales activities to stimulate demand • Signif
Slide 7: Corporate - QBT
Corporate - QBT For personal use only • Beginning to see effects of softening on corporate bookings • Making good progress in transitioning business model from management fees to transaction fees • Greater use of JTG’s National Ticket Centre since August 2008 • Positive acceptance of outsourced hote
Slide 8: Retail – Jetset, Travelworld and Affiliates
Retail – Jetset, Travelworld and Affiliates For personal use only • Major marketing activities to support retail network • Access to dedicated QH call line • Continuing to improve relationships with wide range of preferred suppliers • Greater profile increases opportunities for network expansion • I
Slide 9: Finance/Governance
Finance/Governance For personal use only • Focus on – Cost reduction – Minimising risk exposures (e.g. foreign currency) – Optimising cash management – Establishing appropriate governance structures for merged entity • Dividend – 5 cents per share – In line with pcp – Fully franked – Payable on 31 M
Slide 10: Successes
Successes For personal use only • Retail – Central supplier contracting function established to take advantage of increased purchasing power • Wholesale – Viva! Holidays added Singapore Airlines, Cathay Pacific, Etihad and Air Canada (TTV up 18% on pcp) – Secured status as only major holiday wholesa
Slide 11: Cost Savings
Cost Savings For personal use only • Cost saving initiatives – Manpower reduction – Reduced heads by c.80 (9%) since the merger – Closure of QH Brisbane contact centre announced on 13/1/09 will increase this number to 120 – Property consolidation – Exploitation of increased purchasing power – String
Slide 12: Outlook
Outlook For personal use only • Expect full year PBT to be within previous guidance (20% to 30% less than the $70.6 million excluding amortisation of intangible assets as shown in Explanatory Memorandum) • Market continues to be challenging and very difficult to predict – longevity of global economi
Slide 13: Our Vision
Our Vision For personal use only To be Australia’s leading integrated, full service, leisure and corporate travel group.
Slide 14: Questions
For personal use only Questions
Jetset Travelworld Group — H1 FY2009 Earnings Presentation on 6ix