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With Helloworld Travel Limited having just released its results for the six months to 31 December 2020, it is not surprising that the impact of COVID-19 on the travel industry and the Helloworld Travel business has been cataclysmic, with TTV [total transaction value] down a massive 87.8%, at only $A433 million, with revenue decreasing by 85% to $A29.6 million and the overall pre-tax result a loss of $A21.5 million.

The company commented that it had undertaken a significant decrease in expenses, including a 71% reduction in employee costs, a 92% reduction in advertising expenses and a 99% reduction in selling expenses had partly offset the drop in income

The report also said that Helloworld Travel had been successful in keeping cash burn below $A2 million per month in the first half and that it maintains a positive cash position that will ensure the Group can continue to operate at current levels beyond the next 12 months.

The report also confirmed the acquisition of the additional 60% of Inspire Travel Management for $A1 on 31 October 202 and Cruiseco for $500,000 on 30 November 2020.

The company says that it expects business to remain at about 15-20% of previous levels until mid-2021, with the consistent opening of state borders and opening of trans-Tasman and South Pacific travel bubbles important in any further improvement, adding that medium term, pent-up demand for travel is extremely strong and when this pandemic is finally over, we anticipate travel will ramp up rapidly, with significant growth in 2022, 2023 and 2024, and that

demand for travel services from both retail leisure agents and corporate travel management companies will soar in a world where professional and personalised travel advice and management will be critical to travellers’ sense of security and comfort.

CLICK HERE to view the investor update of 24 February, 2021 provided by CFO and Company Secretary David Hall

An edited report by John Alwyn-Jones