Image source: © Xiphias | Megapixl.com

Highlights

  • Helloworld is an ASX-listed travel distribution company that provides international and domestic travel products and services
  • On 21 February 2024, the company would release its first half results for FY24
  • In FY23, the company registered 153.2% YoY increase in revenue from contracts with customers

Headquartered in Australia, Helloworld Travel Limited (ASX: HLO) is a travel distribution company that offers domestic and internation travel services and products. The ASX-listed consumer company reported a nearly 153.2% YoY rise in revenue to AUD 160.88 million in the financial year 2023 (FY23), backed by an increase in commission margin.

During the reported period, total transaction value increased by 138.5% YoY to AUD 2.57 billion, while operating cash flow reached AUD 26.87 million, compared to AUD 9.42 million in FY22. Notable growth was witnessed in profit after tax in FY23, as it reached AUD 19.2 million compared to a loss of AUD 28.8mn in FY22

Recent business update

On 23 January 2024, the company notified that its chief commercial officer, Peter Crinis has left the company. Crinis joined the company in July 2023 and focused on enhancing retail agency networks and other aspects of the company.

HLO informed that it would release its first half results for FY24 on 21 February 2024.

Outlook

In FY24, the company expects to see more passengers to travel and return to minimum FY19 levels by FY25. In FY24, the expected range of underlying EBITDA is AUD 64-72 million. Presently, the company has no external borrowings and has significant liquidity.

Key drivers for the consumer sector

As per the data published by Australian Bureau of Statistics (ABS), household spending has increased by 2.3% annually in Australia in December 2023. Household spending increased in all states and territories on annual basis, with strongest rise observed in Western Australia (4.5%), South Australia (2.8%) and Northern Territory (4.5%).

ABS data highlighted that in December 2023, household spending on services surged by 6.6% throughout the year, while on non-discretionary items, householding spending grew by 5.4%. Household spending data bode well for consumer sector stocks.

Key sectoral challenges

When compared with February 2021, householding spending growth in December 2023 was the lowest. Throughout the year, household spending growth eased across eight of nine spending categories.

In December 2023, household spending on discretionary items decreased by 0.6% annually.

Share performance of HLO

HLO shares closed 3.41% up at AUD 2.73 apiece on 12 February 2024. Including today’s gain, HLO’s share price has increased by 33.17% in the past one year and has surged by 13.75% in the past three months.

The 52-week high of HLO is AUD 3.29, recorded on 29 August 2023, while the 52-week low is AUD 1.955, recorded on 13 February 2023.

HLO Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 February 2024. The reference data in this report has been partly sourced from REFINITIV.