Home » News » “Our business stands ready”: Helloworld posts FY22 profit of $90m, cuts loss by 27.2%

30 August, 2022

“Our business stands ready”: Helloworld posts FY22 profit of $90m, cuts loss by 27.2%

By Alexandra Coulton

Helloworld has reported a return to profitability in the fourth quarter of FY22 in its full-year financial results today, with a statutory full-year profit of $90.5 million after tax and a net loss of $28.8 million.

Total revenue for Helloworld’s continuing operations grew by 20.5 per cent to $63.3 million, and its TTV rose 140 per cent to $1.01 billion.

The group’s statutory profit of $90.5 million comes from the sale of its corporate travel business to Corporate Travel Management for $117.5 million in December 2021.

The company reported a promising start to FY22, with all Australian borders open and an active trans-Tasman bubble, however, quarter one was almost immediately impacted by the subsequent outbreaks of COVID-19 and countrywide lockdowns across Australia and New Zealand.

Things picked up in the second quarter when international border closures came to an end allowing Aussies to travel overseas, followed by the sale of Helloworld’s corporate travel management division to Corporate Travel Management Limited for $175 million to CTM. Fiji also reopened its borders, welcoming international tourists for the first time since early 2020.

The next quarter saw continued growth with the removal of the WA border restrictions, and Australia opened its borders to international visitors which saw TTV and revenue increase accordingly, as confidence returned to the sector.

The final quarter of the year saw significant growth in leisure business, achieving TTV from continuing operations for the quarter equivalent to that achieved for the whole of FY21.

Looking ahead, Helloworld reported an expected EBITDA profit of $22-$26 million for FY23, if all goes according to plan.

With retail networks having stabilised, the company said it plans to continue to invest in supporting new and existing franchisees to return to shop fronts.

“The last two years have been the most difficult for our industry, but despite this, our business stands ready for a strong rebound,” said Andrew Burnes, Helloworld’s CEO and MD.

“We have a strong balance sheet, with no borrowing, cash reserves and substantial liquid assets. Our network of agencies has proven to be resilient and robust, despite the impact of COVID-19.

“We are looking forward to the year ahead and reconnecting with our customers and suppliers, in addition to delivering enhanced service offerings for our customers.

“We also thank our staff, network agencies, suppliers, and other partners for their continuing support.”

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

Andrew Burnes financial results helloworld