ANNUAL REPORT
2024
HELLOWORLD TRAVEL LIMITED AND CONTROLLED ENTITIES
ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2024
1
CONTENTS
Corporate Information
2
Annual Report 2024 Glossary
3
Report from the Chairman
4
Report from the CEO and Managing Director
6
Executive Management Team
8
Company Snapshot
9
Industry Overview
10
Our Brands and Businesses
12
Year in Review
14
Directors' Report
18
Auditor’s Independence Declaration
43
Corporate Governance Statement
44
Consolidated Income Statement
52
Consolidated Statement of Other Comprehensive Income
53
Consolidated Balance Sheet
54
Consolidated Statement of Changes in Equity
55
Consolidated Statement of Cash Flows
56
Notes to the Financial Statements
57
Consolidated Entity Disclosure Statement
114
Directors’ Declaration
116
Independent Auditor’s Report
117
ASX Additional Information
124
2
DIRECTORS
Garry Hounsell (Chairman)
Andrew Burnes, AO (Chief Executive Officer
and Managing Director)
Cinzia Burnes
Rob Dalton
Hon. Martin Pakula
Leanne Coddington
GROUP COMPANY SECRETARY
Sylvie Moser
REGISTERED AND PRINCIPAL
OFFICE
179 Normanby Road
South Melbourne VIC 3205
Telephone: +61 3 9867 9600
AUDITOR
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000
SOLICITORS
Minter Ellison
447 Collins Street
Melbourne, VIC 3000
STOCK EXCHANGE
Australian Securities Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000
ASX CODE
ASX code: HLO
SHARE REGISTRY
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3067
www.computershare.com
1300 850 505 (within Australia) or
+61 3 9415 4000 (outside Australia)
WEBSITE
www.helloworldlimited.com.au
CORPORATE INFORMATION
3
THE FOLLOWING TERMS HAVE BEEN USED THROUGH THIS ANNUAL REPORT:
AGM
Annual General Meeting
AOT
AOT Group Pty Limited and its controlled entities
ASIC
Australian Securities & Investments Commission
ASX
Australian Securities Exchange
CEO
Chief Executive Officer
CFO
Chief Financial Officer
COMPANY
The parent entity, Helloworld Travel Limited
DMC
Destination Management Company
EBITDA
Earnings before interest expense, tax, depreciation
and amortisation
ETG
Express Travel Group
EPS
Earnings per share
FAR
Fixed Annual Remuneration
FIT
Flexible Independent Travel
FY19
Financial Year ended 30 June 2019
FY23
Financial Year ended 30 June 2023
FY24
Financial Year ended 30 June 2024
FY25
Financial Year ended 30 June 2025
GROUP
The Helloworld Travel Group, comprising Helloworld
Travel Limited and its controlled entities
HELLOWORLD TRAVEL
Helloworld Travel Limited
HLO
Helloworld Travel Limited
KMP
Key Management Personnel
LTIP
Long Term Incentive Plan
MTA
Mobile Travel Holdings Pty Limited and its controlled
entities
PCP
Prior Comparative Period
STIP
Short Term Incentive Plan
TTV
Total Transaction Value
VFR
Visiting Friends and Relatives
ANNUAL REPORT 2024 GLOSSARY
4
REPORT FROM THE CHAIRMAN
THROUGHOUT FY24 WE HAVE
SEEN A DEMONSTRATION OF THE
CONTINUING STRENGTH AND
RESILIENCE OF TRAVEL AGENTS,
TRAVEL BROKERS AND THE
TRAVELLING PUBLIC.
5
As Chairman of Helloworld Travel
Limited, I am very pleased to
report these results, once again
showing solid growth in TTV,
revenue, underlying EBITDA and
profit after income tax compared
with the prior year.
Garry Hounsell
Chairman
Helloworld Travel Limited
Melbourne, 27 August 2024
Rather travellers from this region tend to plan for longer,
and often multi-destination and even multi-purpose
holidays. Visiting a friend or relative is often combined
with more sightseeing or visiting to a wider area to make
the most of the journey. It is this requirement that makes
Australians and New Zealanders, uniquely placed to
need and value the skills, knowledge and expertise of a
travel professional. Helloworld’s extensive network of
agents and brokers are the travel professionals that are
well placed to meet this ongoing need.
LOOKING AHEAD
As a business we are incredibly proud to once again be
well-positioned to deliver continuous and long-term
growth. We continue to focus on successfully advancing
our momentum in growing and developing our business
in Australia, New Zealand and around the world. We
continue our commitment and focus to produce results
and positive outcomes for our various stakeholders
across the business including shareholders, travel
agents and brokers, employees, supplier partners and
consumers.
Once again, I would like to acknowledge the Executive
Management Team, Senior Management Team and their
teams, led by Chief Executive Officer and Managing
Director Andrew Burnes, on the ongoing delivery of the
business strategy and consistent success across the
business and brands. I would also like to acknowledge
and thank my fellow Board members for their
contribution and commitment to the Company, both
over the past year and also going forward.
Thanks and acknowledgement is also due to all
personnel across the business, our industry partners
and our vast networks of agents and brokers in Australia
and New Zealand. We have weathered an unimaginable
storm over the past few years, and it is a testament to
the strength of the industry, and of everyone involved
that we can once again return to the successes
demonstrated in these results.
Travel is indeed an inspiring industry and one I continue
to be pleased to be a part of as we continue to regrow
our success. As the Chairman of this Company, I am
looking forward to continuing to work towards the future
successes that Helloworld Travel Limited has ahead.
BUILDING ON MOMENTUM
FY24 has been another year of strong business
performance for Helloworld Travel Limited,
(‘Helloworld’, the ‘Company’ or the ‘Group’) building on
the growth and success of FY23.
For the year ended 30 June 2024, the Group has
delivered a second successive year of post pandemic
profitability and growth with underlying EBITDA of $67.5
million, an increase of 52.9% or $23.3 million compared
to the prior year. TTV grew by 62.5% to $4.2 billion, up
from $2.6 billion in FY23.
Revenue for the year was $228.2 million, representing
growth on the prior year of $62.3 million. The revenue
margin for the year was 5.2% compared to 6.3% in the
prior year. The lower revenue margin for the Group
is attributable to the acquisition of Express Travel
Group which traditionally operates at lower revenue
margins, and lower Entertainment Logistix revenues.
Basic earnings of 19.2 cents per share was achieved this
financial year, representing an increase of 6.8 cents per
share or 54.8% compared with the prior year.
We are pleased to be declaring a final dividend of 6.0
cents per share fully franked, building on the 5.0 cents
per share interim dividend declared in February 2024,
this equates to a full dividend yield of 4.9% (based on the
closing share price of $2.23 on 24 August 2024). Further
details of the financial performance of the Group are
included in the Operating and Financial Review on pages
24 to 25.
STRENGTH OF THE NETWORK
Our retail networks of agents and brokers on both
sides of the Tasman continue to demonstrate incredible
strength as their services continue to be in high
demand. Travellers understand now more than ever
the importance and benefits of engaging a travel agent,
and customers on both sides of the Tasman are eager to
enhance their travel experiences with the backing and
support of a travel professional.
In Australia and New Zealand, we are in a geographical
position that necessitates a complexity to our travel
arrangements. Given the time involved in travelling to
many parts of the world, we are unlikely to head off on
a short trip to Europe, the UK, the Americas or Africa.
6
Operators) the average duration of an international
leisure travel trip (from Australia) was 17.7 days in 2023,
with the average number of countries visited being 3.1.
The complexities and intricacies of travel arrangements
make our markets in Australia and New Zealand uniquely
placed to require and value the services of a travel agent
when planning and booking travel.
The same CATO survey data found that 88% of Australians
plan to take a holiday in the coming two years, and of that
set, 96% are planning within the next 12 months. These
findings closely mirror the travel planning trends seen in
2019.
The bottom line is that people want to travel, and
they want the services of a professional to make sure
it is done right and they have the back up of a travel
professional if anything goes wrong along the way.
Our network of over 2,700 agents and brokers across
Australia and New Zealand is extensive, with a significant
footprint representing our retail offerings that expands
well beyond the capital cities. Our bricks and mortar
agents thrive in regional areas, suburban shopping
centres, traditional strip malls and large-scale shopping
centres. Plus, we have our vast mobile agent and broker
members who have reach across any geographical
location and loyal customers who return to them time
after time. We are very well placed to meet the needs
of this ever-increasing demand for travel advisors and
professionals.
Across our agency and broker networks, there are over
10,000 travel advisors delivering professional advice
and service across Australia and New Zealand, by far
and away the biggest group of travel professionals in
Australia and New Zealand.
From Broken Hill to Blacktown, Colac to Camperdown,
Grey Lynn to Gore and everywhere in between there is a
member of the Helloworld retail and broker networks to
meet and exceed the service demands of travellers.
RESULTS
Helloworld Travel performed very strongly in FY24, meeting
guidance, delivering on key business and financial initiatives
with strength and improvement in our key financial indicators
across TTV, revenue, underlying EBITDA and net profit after
tax compared with the prior year.
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. Full
year underlying EBITDA is $67.5 million, an increase of
$23.3 million compared with the prior year, up 52.9%.
Underlying EBITDA to revenue margin increased from
26.6% in FY23 to 30.0% in FY24. Net profit after tax also
increased to $30.7 million, up 60.2% and $11.5 million
year-on-year from FY23. Full year dividend of 11.0 cents
per share fully franked.
Our geographical segments across Australia and New
Zealand reported strong growth in underlying EBITDA
compared with the prior year. Our underlying EBITDA
as a percentage of revenue continues to improve as
the Group benefits from its focus on profitable revenue
streams, cost control and improved productivity.
During FY24 we saw a move toward the pre COVID-19
cycle and seasonality within our results. With quarters
1 and 4 being stronger than quarters 2 and 3. Prior to
2020 this was the pattern across our business and it is
the first time we have seen this since FY19.
THE IMPORTANCE AND VALUE OF
TRAVEL PROFESSIONALS
The services of a travel advisor have never been more
highly valued or in demand.
Due to the geographical location of Australia and New
Zealand it is common to see international leisure travel
include multiple destinations and multiple experiences.
According to CATO (the Council of Australian Tour
REPORT FROM THE CEO &
MANAGING DIRECTOR
THE ONGOING IMPORTANCE
OF PROFESSIONAL TRAVEL
ADVISORS CONTINUES TO GO
FROM STRENGTH TO STRENGTH
IN A MARKET THAT VALUES
THEIR EXPERT SERVICES.
7
INVESTMENT IN FUTURE SUCCESS
Throughout FY24 Helloworld continued to invest in
technology and innovation across our proprietary
systems, to improve overall network functionality
operational efficiency and productivity. Our investment
includes our in-house retail mid-office solution, Resworld.
Resworld is currently deployed in over 170 agencies across
Australia and New Zealand with 800 registered users and
we expect this to more than double over the next 12-18
months.
Our Air Tickets booking system remains at the forefront
of ticketing and consolidation offerings with additional
enhancements to our SmartSuite of technologies
including SmartNDC and SmartRefunds.
Our wholesale hotel solution, ReadyRooms, is seeing
ongoing growth in users and sales. It currently features
over 300,000 hotels, activities and transfers, providing
travel agents with a cutting-edge booking portal.
We have enhanced our wholesale and inbound Travel
Agent Booking Platforms via Mango (Australia) and
GoNet (New Zealand) by creating easier navigation tools
and improvements to the payment gateways.
Technology developments across these systems
are instrumental in our distribution of products
and services to our extensive networks of travel
industry stakeholders, including our agents and
brokers throughout Australia and New Zealand with
enhancements specifically tailored to create efficiencies
and increase productivity and profitability for their
businesses.
We also continue to invest in our marketing activity
and undertake significant campaigns in all major metro
and regional media outlets across Australia and New
Zealand. We are grateful for the ongoing relationships
with our preferred partners, as well as State and National
Tourism Authorities for their partnerships on our sales
and marketing activities. They are very important to our
retail and wholesale operations and allow us to put a wide
range of product options in front of customers throughout
Australia and New Zealand.
In late 2024 we will also see the return of Hello World
the TV show, created in partnership with and broadcast
on the Nine Network. Featuring impressive destinations
across Australia and the world each episode includes
strategic advertising offers for viewers to access
exclusive travel deals following each segment.
In June 2023 we announced the acquisition of Express
Travel Group (ETG) in Australia and New Zealand.
Andrew Burnes, AO
Chief Executive Officer and Managing Director
Helloworld Travel Limited
Melbourne, 27 August 2024
This transaction was completed in August 2023 and
the ETG businesses are now embedded within the
Helloworld group. This integration has been very
successful as we optimise efficiencies and synergies
across the business.
We also acquired a 40% stake in Phil Hoffman Travel in
South Australia in August 2023 and this business has
also performed very well throughout FY24.
DIVIDEND
We are pleased to announce a fully franked final dividend
of 6.0 cents per share. The dividend is to be paid on
19 September 2024 and brings the total dividends
declared, fully franked, for the current financial year to
11.0 cents per share.
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 levels.
We are committed to the long-term future of travel agents
and brokers and can see first-hand the demand for these
services shows no signs of lessening.
The outlook for Helloworld Travel Limited is very positive.
Our diversified business model allows us to remain
focused on growing our TTV at profitable margins while
carefully controlling our costs.
I would like to acknowledge and thank the many people
involved in our Company across our global offices, our
agent and broker networks, our shareholders, all of our
Helloworld personnel and our many preferred partners
and supporters who are integral to our success. Without
the dedication and commitment of all of our stakeholders
we would not be able to achieve this success and I am
looking forward to continuing the journey for the business
in the years ahead.
8
EXECUTIVE MANAGEMENT TEAM 2024
JASON STRONG
CHRIS HUNTER
ROHAN MOSS
TOM MANWARING
ANDREW BURNES, AO
CINZIA BURNES
MIKE SMITH
STAN SCOTT
NICK SUTHERLAND
YUSUF AHMED
SIMON LETHLEAN
9
COMPANY SNAPSHOT
HELLOWORLD
BUSINESSES
EMPLOYEE NUMBERS
FY24 900
FY23 49,000
FY24 58,500
SUPPLIERS IN OUR
GLOBAL DATABASE
FY24 20%
AIR TICKETS
SOLD
FY23 212,000
FY24 300,000
READYROOMS HOTEL
CONTENT & ACTIVITIES
FY23 48
FY24 50
DMC CLIENTS
(# OF COUNTRIES)
FY23 2,250
FY24 2,560
AGENCIES SERVICED BY
WHOLESALE DIVISION
TTV
$4.2 billion
Up $1.6 billion
UP
62.5%
Underlying EBITDA
$67.5 million
Up $23.3 million
UP
52.9%
Net Profit After Tax
$30.7 million
Up $11.5 million
UP
60.2%
Total Revenue
$228.2 million
Up $62.3 million
UP
37.5%
MAR
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
JAN
FEB
JUL
OCT
AUG
$560,960
$1,232,236
SEP
JUN
APR
MAY
DEC
NOV
TOTAL TRANSACTION VALUE (TTV) ($000’S)
FY23
FY23
FY24
FY24
$647,108
$969,843
$596,248
$854,900
$764,550
$1,116,348
10
Throughout FY24 we saw predominantly positive statistics and trends around traveller activity in Australia and
New Zealand.
Source: ABS (June 2024)
Source: Stats NZ (June 2024)
Both international visitors to Australia and Australian’s travelling out of the country are showing substantial growth in
the 12 months to end June 2024. The total number of Australian travellers going overseas increased by 32%, from 8.3
million in FY23 to 11.0 million in FY24, an increase of 2.7 million people. Similarly, the total number of travellers coming
into Australia increased by 36%, from 5.9 million to 8.0 million year on year in the twelve months to June 2024.
AUSTRALIA OUTBOUND NUMBERS
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
FY19
FY23
FY24
AUSTRALIA INBOUND NUMBERS
1,200,000
1,000,000
800,000
600,000
400,000
200,000
FY19
FY24
FY23
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
INDUSTRY OVERVIEW
In New Zealand we are seeing the same growth with outbound travellers increasing year on year by 32% from 2.2
million to 2.9 million and inbound visitors to New Zealand increasing by 27% from 2.5 million to 3.2 million year on year.
NEW ZEALAND OUTBOUND NUMBERS
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
FY19
FY23
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
FY24
NEW ZEALAND INBOUND NUMBERS
600,000
500,000
400,000
300,000
200,000
100,000
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
FY19
FY23
FY24
11
AUSTRALIA
NEW ZEALAND
Australian travel to Fiji, Indonesia, Japan and India is above FY19 levels. Travel to New Zealand, UK, Thailand,
Singapore, China and Rest Of World is all over 80% of FY19. Travel to USA is at 66% of FY19 levels.
Visitors from India and South Korea are over 100% of FY19 levels. UK visitors are above 80% of FY19 and NZ is almost at
FY19 levels.
New Zealand travel to Fiji, India and Japan is above FY19 levels. USA and Indonesia are just above 80% of FY19. Australia is at
93% of FY19 levels.
New Zealand visitors from the USA and India are exceeding FY19 levels in FY24. Australia is at 86% of FY19. China and Japan
below FY19 levels at 55% and 62% respectively.
AUSTRALIA INBOUND BY COUNTRY OF ORIGIN
FY23 – % of FY19
FY24 – % of FY19
AUSTRALIA
160%
80%
60%
40%
20%
0%
120%
140%
100%
COOK ISLANDS
FIJI
SAMOA
CHINA
INDONESIA
INDIA
UK
USA
ROW
JAPAN
NZ OUTBOUND BY COUNTRY VISITED
FY23 – % of FY19
FY24 – % of FY19
NEW ZEALAND
160%
80%
60%
40%
20%
0%
120%
140%
100%
FIJI
UK
THAILAND
INDONESIA
SINGAPORE
CHINA
INDIA
USA
ROW
JAPAN
AUSTRALIA OUTBOUND BY COUNTRY VISITED
FY23 – % of FY19
FY24 – % of FY19
AUSTRALIA
80%
60%
40%
20%
0%
120%
140%
100%
UK
GERMANY
SOUTH KOREA
CANADA
SINGAPORE
CHINA
INDIA
USA
ROW
JAPAN
NZ INBOUND BY COUNTRY OF ORIGIN
FY23 – % of FY19
FY24 – % of FY19
12
One of the largest wholesale brands in
Australia, offering an extensive range
of products covering most destinations
throughout the world.
Founded in 1967 by former
All Blacks fullback, Mick
Williment, Williment Travel
is New Zealand’s sports and
events travel specialists.
Provides travel agents with
everything they need to plan
and book their clients’ next
cruise holiday, combining an
unbeatable mix of service,
support and value.
Cruiseco is a specialist cruise
package wholesaler that provides
access to cruise line products
and creates exclusive fly/cruise
products and specialised charters
to help members grow their cruise
business.
A new brand for discerning
clients focusing on high-
end, small group touring in
Australia and international
destinations.
New Zealand’s longest serving travel
wholesaler offering its travel agency
distribution a diverse and extensive range
of travel products around the globe.
ReadyRooms offers travel agents the
ability to search, compare and book
an extensive range of worldwide
accommodation and activities online.
by
WHOLESALE
OUR BRANDS AND BUSINESSES
Australian based network
with loyal high-end clients
managing their own brand and
marketing while leveraging off
the Helloworld brand and the
buying strengths of the Group.
Australia’s leading group of mobile travel
agents for leisure and corporate travel;
utilising bespoke technologies designed
for home based agents whilst utilising the
Helloworld Group buying power.
Part of ETG. One of the leading
buying groups in Australia.
‘We Speak Your Language’
is the key identifier for this
group, made up of agents
predominantly focused on
Asian markets.
Australia’s largest
Independent buying network
affiliated to Helloworld, able
to leverage the strength
of Helloworld’s supplier
relationships and maintain
their independence.
Travel agencies in Australia
and New Zealand who adopt
full branding on their agencies
and collateral material.
Including the tagline
‘The Travel Professionals’.
The Travel Brokers is one of New
Zealand’s leading home based travel
specialist networks. Established in May
2002 their members have vast experience
managing travel for leisure, corporate,
weddings, groups and conventions.
Independent Travel Group encompasses
independently owned and operated travel
businesses in Australia. A partnership
model allows members to tailor a business
based on their needs.
ETG’s premium franchise
network comprising premium
and independent travel
management companies
that operate in the high-
end leisure and corporate
travel space.
New Zealand’s leading
independent travel alliance,
providing members
with market efficiencies
to enhance customer
experience in retail, corporate
and wholesale travel.
YOU Travel and Cruise is a
branded franchise network
operating in New Zealand. With
a range of vibrantly branded
stores across the country, YOU
Travel is a trusted and award
winning brand.
One of the premier travel
agency brands in South
Australia. Phil Hoffmann
Travel operates leisure,
business and curated group
travel services.
Part of ETG, italktravel &
cruise (ITT) operates across
Australia, utilising the ITT
brand as well as their own
specific branding. United by
their ‘talk to us’ identity and
tagline.
One of the largest independent
travel agency networks in
Australia and New Zealand,
Express Travel Group was
established in 183 and has
developed a respected
reputation through service,
collaboration, tools and
technology.
Travel agencies who carry
the “Member of Helloworld
Travel” brand and value
proposition while maintaining
their own brand presence in
market.
Australia’s largest network
of premium independently
owned corporate
travel agents and travel
management companies.
RETAIL – FRANCHISE NETWORKS
RETAIL – BUYING GROUP NETWORKS
RETAIL – BROKER NETWORKS
13
Mango is a B2B booking engine used by Australian and New
Zealand travel agents to search and book accommodation,
transfers, car hire and tours. Mango supports Viva Holidays,
Go Holidays, AOT Online, ETA Online and ATS Pacific.
SmartFares® is a web based shopping
tool sourcing the latest airline fares for our
travel agent customers. Locating flight
options for every airline in the world, in real
time 24/7.
SmartNDC is integrated with IATA’s “New
Distribution Capabilities – NDC” and uses
the latest APIs and airline technologies.
With the ability to shop, book, ticket,
cancel, re-shop, exchange and refund
NDC airline tickets via SmartFares and
SmartTickets solutions.
Resworld is Helloworld’s bespoke Retail Mid-Office Solution
with optimised booking management workflows able to import
bookings from multiple GDS systems. Agents can automate
payments to suppliers and generate documentation.
World class technology providing travel
agents with a ticket processing system
subject to rigorous real-time validation
and a queuing system the envy of global
consolidators.
TECHNOLOGY
™
Air Tickets is the travel industry’s major airfare distribution and
ticketing service consolidator, with a 24/7 web-based portal to
real-time airfares allowing agents to shop, book and ticket in
one system.
Express Tickets is a service focused consolidation division
backed by an advanced fares & ticketing technology platform.
A market-leading consolidator providing travel agencies, tour
operators and OTA’s with an efficient, easy-to-use airfare and
airline ticketing solution.
CONSOLIDATION
Tourist Transport Fiji operates a fleet of 40 vehicles providing
transfer services throughout Fiji with sightseeing tours and
adventure packages under the Great Sights and Feejee
Experience brands.
Entertainment Logistix is Australia's largest freight operator
providing specialised and dedicated purpose built equipment for
local and international touring artists and other entertainment
options operating a fleet of over 140 vehicles and trailers and
extensive warehousing facilities.
TOUR OPERATING
Established in 1989, AOT Inbound is one of Australia’s longest
established inbound tour operator in Australia, offering an excellent
booking platform and staff to service the FIT and Group markets
from UK, Europe, USA and other long-haul Western markets
Australiareiser is the largest wholesaler
from Scandinavia to Australia and the
South Pacific, operating from Norway,
Sweden and Denmark.
New Zealand’s largest inbound tour
operator offering an excellent booking
platform and staff to service both the FIT
and Group markets from UK, Europe, USA
and other long- haul Western markets.
A leading inbound tour operator with offices in Australia, NZ and
Fiji, providing specialty inbound services in all three destinations
for FIT and Group markets from UK, Europe, USA and other
long-haul Western markets.
Established in 1987 – ETA is a leading
Inbound Tour Operator (Asian Specialist)
- working across 16 countries throughout
Asia.
DMC – AUSTRALIA, NEW ZEALAND AND FIJI
14
year in review
YEAR IN REVIEW
NETWORKS
With significant retail travel brands, Helloworld has over
2,700 members in Australia and New Zealand across
its retail networks including fully branded Helloworld
Travel outlets, Helloworld Travel Associate members,
Helloworld Business Travel, Magellan Travel, The Travel
Brokers (NZ), NZ Travel Brokers, Mobile Travel Agents
and the My Travel Group.
At the beginning of the 2024 financial year, the
acquisition of Express Travel Group (ETG) was
completed. ETG is one of the largest independent travel
agency networks in Australia and New Zealand. The ETG
retail networks welcomed to the business in Australia
included Alatus, Independent Travel Group, Select
Travel Group, Independent Travel Advisors, and in New
Zealand, You Travel Group and First Travel Group.
Across all our networks we have seen the demand for the
services of a travel professional remain high. Throughout
FY24 our retail network members in both Australia
and New Zealand continue to be valued by leisure and
corporate travellers and very much in demand. And this
shows no sign of changing into FY25 and beyond.
TRAINING ACADEMY
In order to help grow personnel numbers in the retail
sector we launched the Helloworld Travel Academy
in Australia in May 2022 and in New Zealand in March
2023. In FY24 the Helloworld Travel Academy trained
over 550 new advisors to the industry all placed in the
Helloworld retail network. In addition to rookies coming
into our network’s businesses, the Academy has gone
from strength to strength with over 5,500 travel advisors
across all levels of experience attending for a variety of
training in Product, Destination, Technical and Human
skills in both virtual and face to face sessions.
MARKETING ACTIVITY
Helloworld undertakes significant marketing activity
with substantial investment to drive leads and customers
to our agents as well as building brand awareness.
Throughout FY24 we executed over 150 substantial
marketing campaigns for the Helloworld retail networks.
Branded advertising featured across major metro and
regional newspapers, radio, TV, outdoor and online.
Helloworld has negotiated preferred partnerships with
all major media across Australia and New Zealand.
These partnerships allow Helloworld to leverage their
relationships for the best outcome and return on
investment to the benefit of the agent networks.
Returning in November 2024 is the Hello World TV show
a travel and lifestyle program created in partnership
with and broadcast on the Nine Network. Featuring
impressive destinations around the world, each episode
includes strategic advertising offers for viewers to
access exclusive travel deals following each segment.
The value of a travel professional in arranging leisure and corporate travel for
Australian and New Zealand travellers remains incredibly high. Travellers know the
value, advantages and assurances that come with using the advice of a Helloworld
agent and want to avoid the risk of doing it themselves or experiencing challenges
along the journey. Having a professional on call to assist if needed is a highly valued
component of the travel experience for our customers.
BRANDED
NETWORK
NEW ZEALAND
NETWORKS
ASSOCIATE
NETWORK
MAGELLAN
TRAVEL GROUP
CORPORATE
NETWORK
INDEPENDENT
NETWORK
AUSTRALIAN
TRAVEL BROKER
NETWORK
EXPRESS TRAVEL
GROUP
RETAIL BRANDS
RETAIL NETWORKS
15
Wholesale businesses include Viva Holidays, Cruiseco,
Creative Cruising, GO Holidays and Williment Travel
in New Zealand, and the HLO owned and operated
ReadyRooms hotel booking platform.
Viva Holidays caters for all holidaymakers and budgets
with an extensive range of fun and affordable holiday
deals in Australia and around the world. Celebrating its
50th Anniversary in 2024, Viva continues to produce
an extensive range of brochures covering domestic,
international, and special interest product. The demand
for brochures remains very high and we are pleased to
create such a wide selection for agents to use as valuable
selling tools. Viva Holidays was proud to be recognised
as the Most Outstanding Wholesaler Product/Service at
the 2023 National Travel Industry Awards (NTIA), and is a
finalist for the same award in 2024, to be announced on 26
October 2024.
Ultimate Journeys by Viva Holidays offers a range of
bespoke journeys catering to the discerning traveller.
Specifically designed to meet the demands within
the luxury category Ultimate Journey itineraries are
designed to make the most of bucket-list destinations
and exclusive experiences. Building on the success of
previous seasons, we relaunched our most popular
destinations and added new experiences to the collection
in 2024/25.
Cruise continues to generate strong growth and demand.
The cruise division provides innovative cruise packaging
Helloworld’s Inbound division, consisting of well-respected
global brands AOT Inbound, ATS Pacific and ETA, have
continued their strong recovery post COVID and have
recorded significant growth for the financial year.
Various factors are driving this increase including
increased airline capacity to Australia and New Zealand,
easing airfare pressure for inbound travellers. A
favourable AUD exchange rate against both the Euro and
USD puts travel within reach of more travellers.
A strong outbound market is easing pressure on local
USA
2024-2025
24
hotel and touring availability and rates, and a strong
global consumer demand for luxury experiences has
increased average booking value. Plus, Australia and
New Zealand continue to have a preferred status globally
as a safe and friendly destination.
With clients in 50 countries around the world our
inbound brands work closely with agent partners
globally and approximately 4,000 supplier partners in
Australia, New Zealand and the South Pacific.
and distributes cruise products from over 70 global
cruise partners. Offering white-label websites to give
agents digital capabilities to transact cruise product
24/7, the cruise division contracts and secures cruise
allocation to guarantee rates and availabilities for agents.
Brands include Cruiseco in AU, GO Cruise in NZ, and
Creative Cruising in AU and NZ, that was integrated in the
acquisition of ETG. Cruiseco is a finalist in the 2024 NTIA
Awards in the category of Most Outstanding Wholesaler
Product/Service.
GO Holidays is New Zealand’s longest serving travel
wholesaler with over 45 years of experience offering
product distribution to a wide range of top retail travel
brands throughout New Zealand. Producing 16 branded
brochures annually featuring a comprehensive range to
suit all travel styles. GO Holidays has been awarded New
Zealand’s Best Wholesaler at the annual TAANZ awards
for 6 years.
Williment Travel is based in New Zealand and boasts
and maintains a leading presence in the sports travel
industry offering a broad selection of sporting events and
experiences, including Formula 1, Supercars, MotoGP,
tennis, rugby league, rugby union, football, horse racing
and golf. The commercial relationships Williment has in
place with rights holders continues to flourish, ensuring
their range of the very best sporting experiences around
the world continues to grow.
Helloworld’s wholesale operations distribute travel products and services
to markets all over the world, using significant buying power to negotiate
the best contracted rates with preferred partner suppliers globally.
AUSTRALIA
ONAL
NEW SOUTH WALES
INCLUDING CANBERRA
2024-2025
NORT
& SO
WHOLESALE
INBOUND
16
year in review
Helloworld’s Fiji operations include inbound (ATS Pacific)
and transport (Tourism Transport Fiji - TTF) divisions as
well as Shared Services personnel.
Tourist Transport Fiji (TTF) is Fiji’s premier transport
operator and ground handler having been in operation
for over 35 years. Based in Nadi, Fiji, TTF’s operation
is conveniently based at our own facility at Nadi
International Airport. Recent investment includes
further development of the depot, new vehicles
and fleet refurbishment. Six new vehicles added 78
Providing services to the entertainment industry,
Entertainment Logistix is a leading choice for
complex freight and logistics management to a range
of customers across various sectors including the
Performing Arts, Live Music, Theatre and Stage, Media,
Production, Sports and large national Festivals and
Corporate Events.
With a specialised fleet of over 140 company
owned vehicles, a dedicated network of drivers and
additional seats to the current TTF fleet fulfilling the
increasing demand for our family market and cruise ship
customers.
The Helloworld Shared Services operations in Nadi
undertakes support in areas of administration, finance
services including accounts payable and accounts
receivable as well as content, contracting and product
development.
Helloworld’s operations in Fiji are well placed to cater for the
increasing tourism growth and demand in Fiji we are seeing.
contractors, Entertainment Logistix offers tailored
solutions specific to the requirements of each project.
The Entertainment Logistix business continues to
invest in fleet and infrastructure, which will provide
a platform for future growth. Activity in this year has
included a number of high-profile events, including
Taylor Swift, Pink, Ed Sheeran, Robbie Williams, The
Wiggles, Post Malone, Paramore, Mary Poppins, Miss
Saigon and Mamma Mia.
FIJI
ENTERTAINMENT LOGISTIX
17
Helloworld has a suite of sophisticated in-house
technologies and systems that are continually in
development to remain at the forefront of the industry.
AIR TICKETS
A wholly owned business and proprietary software of
Helloworld Travel Limited, Air Tickets is an industry
leading in-house ticketing service, providing travel
industry customers with an award-winning, one-stop
solution for airfare distribution and ticketing services.
We continue to upgrade our Air Tickets system,
with ongoing development within the SmartSuite of
technologies. SmartNDC has joined the suite of products
and provides a single shopping solution to search and
compare the best air offers into one single shopping page
as part of the NDC (New Distribution Capability) launched
by airlines.
A new addition to the SmartSuite is SmartRefunds, a
first-in-market online refund capability. Designed, owned
and operated by Air Tickets. In just two clicks, refunds
are processed online instantly via the GDS, delivering
quick turnaround of funds. The ultimate time saver for
travel industry customers with automation and efficiency
allowing more time for revenue generation, resulting in
better outcomes for both agents and their customers.
Since early 2024 all ETG agent networks in Australia
and FTG agent network in New Zealand have been using
Air Tickets technology and the feedback on the greater
automation and efficiencies has been overwhelmingly
positive.
RESWORLD
A key technology for Helloworld Retail is our in-house
designed and built mid-office platform, Resworld.
Resworld enhances our agents’ productivity by providing
a streamlined booking management process that
seamlessly integrates with our partner systems to import
segments, quickly generate itineraries and provide robust
reporting and CRM tools.
Using advanced API connections, Resworld links with
our key suppliers. These connections enhance the speed
and accuracy of managing a booking for our agents and
we continue to encourage and support more partner
connections to our platform.
Recently we completed additional connections
to Helloworld’s own ReadyRooms, Mango, GoNet
and Cruiseco systems as well as external preferred
partners, enabling agents to bring itineraries and pricing
directly into Resworld in just a few clicks. These direct
connections between a supplier’s booking platform and
Resworld can save a consultant up to an hour a day in
data entry time, depending on the complexity of the
reservation. Resworld is directly driving efficiencies and
enabling agents to offer the best service to clients.
Resworld is currently deployed in over 170 agencies
across Australia and New Zealand with 800 registered
users and we expect this to more than double over the
next 12-18 months.
READYROOMS
We are excited about the continued success and
ongoing growth in users of our updated wholly owned
and operated ReadyRooms platform. Providing travel
agents with a cutting-edge booking portal, key features
include the ‘Search By Anywhere’ feature and our unique
‘Name Your Own Price’ function. Currently featuring
over 300,000 hotels, activities and transfers, we are
continually growing our connections and offerings. The
system, thanks to recent enhancements, has been widely
embraced by our networks and continues to record triple
digit growth week on week.
WHOLESALE PLATFORMS
In the Wholesale area our Travel Agent Booking Platforms
continue to be developed. We continue to enhance the
travel agent experience via Mango (Australia) and GoNet
(New Zealand) by creating easier navigation tools, the
ability to view Instant Purchase product as a priority and
improvements to the payment gateways. We are also
working on integration that will allow our inbound trade
partners to move to the Mango platform.
Mango and GoNet are powered by Tourplan, and our
supplier integrations are delivered via the Tourplan DX
platform. Our dedicated supplier connectivity team
remain focused on developing new supplier connections
and maintaining the mapping of existing ones.
In the Cruise wholesale divisions, we operate a third
party system, Odysseus, which has direct API feeds
of content coming directly from the cruise lines. Our
version of Odysseus has bespoke enhancements
allowing for a quick turnaround on creating whitelabel
sites for the agents as well as Finance modules,
increasing the productivity of division.
Helloworld’s technologies continue to be an extremely important
component of our business. Our ongoing investment in these systems
and platforms enables delivery of world class outcomes for our agents,
wholesale and inbound customers as well as for travellers.
OUR TECHNOLOGY
18
DIRECTORS’ REPORT
The Directors of Helloworld Travel Limited (Helloworld Travel),
present their Report together with the Financial Statements
of the Consolidated Entity (Group) being Helloworld Travel
Limited and the entities that it controlled at the end of, or
during, the year ended 30 June 2024 and the Independent
Auditor’s Report.
The Directors of the Company in office at any time during or since
the end of the financial year are as follows:
APPOINTMENT
Garry Hounsell was appointed to the Board and as
Chairman from 4 October 2016.
EXPERIENCE AND EXPERTISE
Garry has extensive Director experience on a wide
range of highly successful Boards. Garry was formerly
Senior Partner of Ernst & Young, Chief Executive Officer
and Country Managing Partner of Arthur Andersen, a
Board member of Freehills (now Herbert Smith Freehills)
as well as Deputy Chairman of the Board of Mitchell
Communication Group Limited.
Garry was formerly the Chairman and a Non-Executive
Director of Hiro Brands Limited formerly known as
Wellness and Beauty Solutions Limited, a Non-Executive
Director of Qantas Airways Limited, Orica Limited and
Dulux Group Limited.
Garry is a Fellow of the Australian Institute of Company
Directors and a Fellow of Chartered Accountants in
Australia and New Zealand.
Garry Hounsell
B Bus, FAICD, FCA
Non-Executive Director and Chairman
OTHER CURRENT DIRECTORSHIPS OF
LISTED ENTITIES:
• Treasury Wine Estates Limited (since 2012).
• Electro Optic Systems Holdings Ltd, Chairman (since
November 2022).
OTHER CURRENT DIRECTORSHIPS:
• Commonwealth Superannuation Corporation Limited,
Director since 2016 and Chairman from July 2021.
SPECIAL RESPONSIBILITIES:
• Chairman of the Board.
• Chairman of the Remuneration Committee and
Nominations & Governance Committee.
• Member of the Audit & Risk Committee.
INTERESTS IN SHARES:
• A legal and beneficial interest in 153,890 fully paid
ordinary shares.
directors' report
19
APPOINTMENT
Andrew Burnes, AO was appointed Chief Executive
Officer and Managing Director of Helloworld Travel
Limited on 1 February 2016.
EXPERIENCE AND EXPERTISE
Upon completing degrees in both Law and Commerce at
Melbourne University in 1984, Andrew was employed by
Blake Dawson Waldron where he completed his articles
and worked as a solicitor.
On 1 November 1987, Andrew founded The Australian
Outback Travel Company, which later became The
AOT Group. After the merger of The AOT Group and
Helloworld in January 2016, he was appointed Chief
Executive Officer of Helloworld Travel Limited on 1
February 2016.
APPOINTMENT
Cinzia Burnes, Chief Operating Officer and Executive
Director was appointed to the Helloworld Travel Limited
Board on 1 February 2016.
EXPERIENCE AND EXPERTISE
Cinzia brings extensive sector and management
experience to the Board.
In 1982, Cinzia commenced her career in travel and after
working as a travel wholesaler in Italy for nine years,
she played a pivotal role in growing AOT from a regional
safari operator into one of Australasia’s leading travel
distribution businesses. The AOT Group was privately
owned by Andrew and Cinzia Burnes until its merger
with Helloworld in February 2016.
Andrew Burnes, AO
LLB, B Comm. (Melb)
Chief Executive Officer and Managing Director
Cinzia Burnes
Chief Operating Officer and Executive Director
Andrew was Honorary Federal Treasurer of the Liberal
Party of Australia from July 2015 to June 2019.
Andrew was made an Officer of the Order of Australia
(AO) in the June 2020 Queen’s Birthday honours for his
distinguished services to business, particularly through
a range of travel industries, to professional tourism
organisations, and to the community.
SPECIAL RESPONSIBILITIES:
• Chief Executive Officer and Managing Director.
INTERESTS IN SHARES:
• A legal and beneficial interest in 10,495,531 fully paid
ordinary shares.
• In conjunction with Cinzia Burnes a further beneficial
interest in 18,358,287 fully paid ordinary shares.
Cinzia was a Director of Tourism Victoria from 2013 to
2015. She also served as a Board member of Health
Services Australia from 2005 to 2007 and the Australian
Tourist Commission from 2001 to 2004. Cinzia was
appointed a Director of Australian Travel Industry
Association (ATIA) on 14 December 2022, formally
known as Australian Federation of Travel Agents (AFTA).
SPECIAL RESPONSIBILITIES:
• Chief Operating Officer and Executive Director.
INTERESTS IN SHARES:
• A legal and beneficial interest in 10,138,014 fully paid
ordinary shares.
• In conjunction with Andrew Burnes a further beneficial
interest in 18,358,287 fully paid ordinary shares.
20
directors' report
APPOINTMENT
Rob Dalton was appointed to the Board on 9 November 2021.
EXPERIENCE AND EXPERTISE
Rob’s career has spanned over 35 years where he was
a Partner at Arthur Andersen from 1995 – 2002 and
Senior Partner at Ernst & Young from 2002 – 2019
where he undertook many complex engagements on
large corporations in Australia and overseas, as well as
engagements involving transformational change.
Rob provided advice and assurance on mergers,
acquisitions and divestments as well as the
implementation of governance frameworks within the
Manufacturing, Infrastructure, Consumer Products and
Service Organisations.
Rob held the role of Acting Chief Executive of Sports Australia
and the Australian Sports Commission based in Canberra,
where he oversaw 110 National Sporting Organisations
providing funding to sports and activity providers to grow
participation from Feb 2020 to April 2022.
APPOINTMENT
Hon. Martin Pakula was appointed to the Board on
30 November 2022.
EXPERIENCE AND EXPERTISE
Martin served as a Member of the Victorian Parliament
for 16 years, from 2006 to 2022. In that time he held
a range of ministerial portfolios including Minister for
Industry, Minister for Trade, Minister for Industrial
Relations, Minister for Public Transport, Attorney
General, Minister for Racing, Minister for Innovation,
Minister for Jobs, Minister for Business Precincts and
Minister for Tourism, Sport and Major Events. Martin
served a six and half year term as an MLC in the 2000’s
and a ten-year term as an MLA from 2013 to 2022.
Prior to entering Parliament, Martin worked as a solicitor
and as a senior trade union official.
Rob Dalton
B Bus, FCA, GAICD
Non-Executive Director
Hon. Martin Pakula
B Economics (Monash University), LLB
(Hons) (Monash University), GAICD
Non-Executive Director
Rob also held the role of Finance Director for Richmond
Football Club from 2004 - 2019.
OTHER CURRENT DIRECTORSHIPS OF
LISTED ENTITIES:
• K&S Corporation Limited (since August 2021), a
member of the Audit committee.
• Equity Trustee Holding Limited (since September
2023).
OTHER CURRENT DIRECTORSHIPS:
• Kookaburra Sport Pty Ltd (since December 2021).
• Blue Cross Community Care Services Pty Ltd (7 June
2022 - 30 June 2024).
SPECIAL RESPONSIBILITIES:
• Chairman of the Audit & Risk Committee.
• Member of the Remuneration Committee and
Nominations & Governance Committee.
OTHER CURRENT DIRECTORSHIPS:
• Sport Australia Hall of Fame, Independent Director
(since March 2023).
• Australian Grand Prix, Chairman (appointed
10 October 2023).
SPECIAL RESPONSIBILITIES:
• Member of the Audit & Risk Committee, Remuneration
Committee and Nominations & Governance Committee.
INTERESTS IN SHARES:
• A legal and beneficial interest in 7,000 fully paid
ordinary shares.
21
Sylvie Moser
B Comm, CPA, FGIA, FCG, MBA, LLB, GAICD, LLM
Group Company Secretary
APPOINTMENT
Leanne Coddington was appointed to the Board on
1 February 2023.
EXPERIENCE AND EXPERTISE
Leanne has a deep level of broad industry experience in
the tourism, events and hospitality sectors spanning more
than 30 years. As CEO of Tourism and Events Queensland
for nine years from 2013 to 2022, Leanne lead the
strategic positioning of Queensland’s tourism and events
industry including marketing, global trade distribution,
industry and aviation partnerships, event acquisition
and experience development. Leanne guided the State’s
tourism and events industry through the COVID-19
pandemic ensuring it was well positioned as state and
international borders reopened. Prior to that, she held
senior executive roles with Tourism Queensland including
Destination Partnerships, Strategy and Research and
Human Resources. Her early career in hospitality
Sylvie joined Helloworld Travel Limited in January
2021 and has more than 30 years finance, commercial,
management and corporate experience across a
number of industries. Sylvie held roles of Group Financial
Controller and Company Secretary with a number of
unlisted companies where she led the finance, corporate
governance and risk areas.
Leanne Coddington
B Bus, GAICD, FAIM
Non-Executive Director
management included senior executive roles with the
Hyatt Hotel Group. Leanne is also an Adjunct Professor of
the University of Queensland Business School.
OTHER CURRENT DIRECTORSHIPS:
• Museum of Brisbane (since February 2020).
• Netball Queensland (since 12 February 2023), Chair
(appointed 25 March 2023).
• Queensland Performing Arts Trust (appointed 22 May
2024).
SPECIAL RESPONSIBILITIES:
• Member of the Audit & Risk Committee, Remuneration
Committee and Nominations & Governance
Committee.
INTERESTS IN SHARES:
• A legal and beneficial interest in 45,000 fully paid
ordinary shares.
Prior to joining Helloworld, Sylvie was most recently
CFO/Company Secretary and Legal Counsel of a dual
listed mining exploration company, providing strategic
and commercial leadership in finance, governance
compliance and risk management.
Sylvie is an experienced governance professional,
Chartered Secretary, a Solicitor and a Certified
Practicing Accountant.
22
directors' report
DIRECTORS’ MEETINGS
During the year, 10 meetings of the Board, four meetings of the Audit & Risk Committee, three meetings of the
Remuneration Committee and one meeting of the Nominations & Governance Committee were held.
Attendance at Board and Board Committee Meetings during the year is set out in the table below:
Board
Audit &
Risk Committee
Remuneration
Committee
Nominations &
Governance
Committee
DIRECTOR
A
B
A
B
A
B
A
B
Garry Hounsell
10
10
4
4
3
3
1
1
Andrew Burnes, AO
10
10
4
4
3
3
1
1
Cinzia Burnes
10
10
4
4
3
3
1
1
Rob Dalton
10
10
4
4
3
3
1
1
Hon. Martin Pakula
10
10
4
4
3
3
1
1
Leanne Coddington
10
10
4
4
3
3
1
1
Column A: Indicates the number of scheduled and ad hoc meetings held during the period the Director was a member
of the Board and/or Board Committee or was invited to attend.
Column B: Indicates the number of scheduled and ad hoc meetings attended by the Director during the period the
Director was a member of the Board and/or Board Committee or attended by invitation.
RETIREMENT IN OFFICE OF DIRECTORS
In accordance with the Company’s Constitution and the ASX Listing Rules, Rob Dalton, being the longest serving
Director will retire by rotation and being eligible, offers himself for re-election at the 2024 Annual General Meeting.
DIVIDEND
The Board declared that the Company will pay a fully franked final dividend of 6.0 cents per share, with a planned
payment date of 19 September 2024.
EARNINGS PER SHARE
Basic earnings per share and diluted earnings per share was 19.2 cents and in the prior year was 12.4 cents.
PRINCIPAL ACTIVITIES
The principal activities during the year of the entities in the Group were the selling of international and domestic travel
products and services, the operation of retail distribution networks of travel agents and specialised freight operations.
Helloworld Travel is a leading Australian and New Zealand travel distribution company comprising retail distribution
travel networks, destination management services (for inbound into Australia, New Zealand and South Pacific travel),
air ticket consolidation, wholesale leisure services (domestic and international), accommodation management
operations and online operations, and freight and coach operations.
Helloworld’s retail distribution operations include Helloworld Travel, Australia and New Zealand’s largest network of
branded and co-branded franchised travel agents, Magellan Travel, Helloworld Business Travel, My Travel Group, NZ
Travel Brokers and our 50% investment in MTA (Mobile Travel Agents). With the acquisition of Express Travel Group in
August 2023, the ETG retail networks welcomed to the Helloworld Group in Australia included Alatus, Independent Travel
Group, Select Travel Group, Independent Travel Advisors, and in New Zealand, You Travel Group and First Travel Group.
Helloworld’s wholesale travel businesses in Australia include Viva Holidays, Ultimate Journeys, ReadyRooms, and in
New Zealand includes GO Holidays and Williment Travel. With the acquisition of Express Travel Group in August 2023,
Creative Cruising in Australia and New Zealand joined the Helloworld Group.
Helloworld’s inbound operations in Australia, New Zealand and Fiji include AOT, ATS Pacific and ETA while our freight
and coach operations businesses include TTF Fiji and Entertainment Logistix.
Helloworld Travel’s main business operations are located in Australia, New Zealand and Fiji.
23
24
directors' report
OPERATING AND FINANCIAL REVIEW
SUMMARY OF RESULTS
For the year
ended
30 June
2024
$000’s
For the year
ended
30 June
2023
$000’s
Change
$000’s
Change
%
Total Transaction Value (TTV)
4,173,327
2,568,866
1,604,461
62.5%
Total revenue and other income
228,208
165,914
62,294
37.5%
Expenses
(172,258)
(128,112)
(44,146)
34.5%
Equity accounted profit
4,857
1,981
2,876
145.2%
Underlying EBITDA
67,462
44,119
23,343
52.9%
Underlying EBITDA margin %
30.0%
26.6%
EBITDA
60,807
39,783
21,024
52.8%
EBITDA margin %
26.6%
24.0%
Depreciation and amortisation
(18,798)
(18,023)
(775)
4.3%
Interest expense
(1,217)
(703)
(514)
73.1%
Profit before income tax from continuing operations
40,792
21,057
19,735
93.7%
Income tax expense
(10,063)
(1,872)
(8,191)
437.6%
Profit after income tax from continuing operations
30,729
19,185
11,544
60.2%
Total loss after tax from discontinued operations
-
(1,822)
1,822
(100.0%)
Profit after tax for the year
30,729
17,363
13,366
77.0%
Profit attributable to the owners of Helloworld Travel Limited
30,604
17,375
13,229
76.1%
For the year
ended 30
June 2024
Cents
For the year
ended 30
June 2023
Cents
Change
Cents
Change
%
BASIC EARNINGS/(LOSS) PER SHARE
Continuing operations
19.2
12.4
6.8
54.8%
Discontinued operations
-
(1.2)
1.2
(100%)
DILUTED EARNINGS/(LOSS) PER SHARE
Continuing operations
19.2
12.4
6.8
54.8%
Discontinued operations
-
(1.2)
1.2
(100%)
INTERIM DIVIDEND PER SHARE
5.0
2.0
3.0
150.0%
FINAL DIVIDEND PER SHARE
6.0
6.0
-
-
Total Transaction Value (TTV) does not represent revenue in accordance with Australian Accounting Standards and is not subject to audit or review.
TTV represents the price at which travel products and services have been sold across the Group, as agents for various airlines and other service
providers, plus revenue from other sources. The Group’s revenue is, therefore, derived from TTV. TTV does not represent the Group cash inflows as
some transactions are settled directly between the customer and the supplier.
Earnings Before Interest Expense, Taxation, Depreciation and Amortisation (EBITDA) is a financial measure which is not prescribed by Australian
Accounting Standards and is not subject to audit or review.
Underlying EBITDA represents EBITDA excluding significant items. Underlying EBITDA is a financial measure which is not prescribed by Australian
Accounting Standards but is the measure used by the Chief Executive Officer (CEO) and the Board to assess the financial performance of the
Group and operating segments and is not subject to audit or review.
A reconciliation of Underlying EBITDA to profit before income tax expense is provided in note 2.3: Segment Information.
Underlying EBITDA margin has been calculated as Underlying EBITDA as a percentage of total revenue excluding significant items.
EBITDA margin has been calculated as EBITDA as a percentage of total revenue.
25
26
directors' report
OVERVIEW OF RESULTS
Helloworld Travel recorded strong growth in Total
Transaction Value (TTV), revenue, underlying EBITDA
and net profit after income tax, driven by a continued
focus on profitable revenue streams, cost control,
improved productivity and the successful acquisition
and integration of Express Travel Group (ETG). Whilst
focused on delivering this result, the business further
invested in its brands, products, technology and
people to ensure the Group is well positioned to deliver
sustainable long-term growth.
Helloworld’s key financial results for the year ended 30
June 2024 (FY24) compared with the prior year ended 30
June 2023 (FY23) on a continuing operations basis are:
• TTV grew by 62.5% to $4.2 billion in FY24, up from
$2.6 billion in FY23. Both the Australian and New
Zealand geographical segments benefited from the
ETG acquisition and grew TTV by 60.6% and 79.4%
respectively.
• Revenue for FY24 was $228.2 million, up 37.5% on the
FY23 revenue of $165.9 million. The revenue margin
decrease from 6.3% in FY23 to 5.2% in FY24 was
attributable to the acquisition of Express Travel Group
which operates at a lower revenue margin and lower
Entertainment Logistix revenue.
• Operating costs increased compared with the prior
year because of the inclusion of the cost base of the
ETG acquisition and as the business continued to
invest in short and longer-term growth (including
resuming marketing campaigns in Australia and New
Zealand).
• The share of profits from equity accounted
investments increased 145.2% year-on-year to $4.9
million in FY24. This was driven from strong results by
MTA (50% owned by Helloworld) and Phil Hoffmann
Travel (40% owned by Helloworld, effective August
2023).
• The Entertainment Logistix business, Australia’s
largest provider of specialist transport and logistics
services to the entertainment industry, reported full
year revenues of $17.1 million (down from $24.2 million
in FY23) and an FY24 underlying EBITDA of $1.2
million.
• Underlying EBITDA of $67.5 million, up $23.3 million or
52.9% on the prior year. The underlying EBITDA margin
improved from 26.6% in FY23 to 30.0% in the current
year.
• Profit before income tax increased $19.7 million to
$40.8 million in FY24.
• Profit after income tax increased to $30.7 million, up
60.2% or $11.5 million year-on-year.
YEAR IN REVIEW
27
SHAREHOLDER RETURNS
The Board declared that the Company will pay a final dividend of 6.0 cents, fully franked, with a planned payment date
of 19 September 2024. This follows a 5.0 cent interim dividend which was paid on 22 March 2024.
Helloworld’s basic and diluted earnings per share for was 19.2 cents, compared to 12.4 cents in the prior year on a
continuing operations basis.
LIQUIDITY AND FUNDING
As at 30 June 2024, the Group held a total cash balance of $161.9 million compared with $160.9 million at 30 June 2023.
The Company holds 1.4 million shares in ASX listed Corporate Travel Management (ASX: CTD) at 30 June 2024.
Further, Helloworld has no external bank debt at balance date.
AGENT
BSP
MON
MON
DAY 1
SUN
SUN
MON
MON
WED
FRI
Agents sell tickets via ticketing
platform. System automatically
raises debtor (net of upfront
commission payable to agent)
System automatically recognises the
BSP creditor on sale of the ticket (net of
upfront commission payable by the airline)
Statement
issued to
agent
Agent to
settle debtor
balance
BSP
creditor
settled
DAY 15
ILLUSTRATIVE EXAMPLE OF THE BSP CYCLE
The timeline above presents the weekly IATA Billing and Settlement Plan ("BSP") payment cycle associated with
the sale and purchase 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 airlines when a ticket is sold. Agents
typically settle ticket sales for the prior Monday to Sunday on a Wednesday. Helloworld is required to settle the IATA
BSP account on the Monday following receipt of those funds. The month end and year end net BSP cash balance varies
considerably depending on the day of the week on which the month end / year end falls.
28
directors' report
MATERIAL BUSINESS RISKS
Helloworld is exposed to a range of business, social
sustainability and economic risks and seeks to mitigate
any significant exposures to its operations through
a range of measures implemented in line with its risk
management framework.
Helloworld’s approach to risk management is based on
established governance processes and relies on both
individual responsibility and shared oversight, supported
by various tools to facilitate comprehensive reporting.
Allowing for proactive participation by the Executive
Management Team (EMT) in all significant risk matters.
The Audit & Risk Committee meets with members of
the EMT to review the material risks encountered by the
Group and the business practices and processes in place
to mitigate these risks or their impact. Every attempt
is made to identify and manage material risks, however,
risks not currently known or listed above that may
adversely impact the Company are set out below
Economic risks
• Economic conditions
• Pandemic and health crises
• Changes in consumer preferences
• Financial risks
• Agent network risks
• Impact of war, terrorism, and other external events
• Changes to Government policies and regulations
• Indirect taxes
• Technological disruption/ IT system failure
Helloworld understands that travel is subject to the
effects of key economic risks, such as recession,
global conflicts, currency movements, interest
rates, and consumer confidence. In this economic
environment these factors remain a challenge. Changes
in employment levels and labour costs affect the cost
structure of the Group. Helloworld offers a range of
global travel destinations and related products which
allows for quick response to changes in demand based
on changing economic conditions. Helloworld Travel’s
agent network remains an important part of its growth,
a reduction in its agent network may adversely influence
Helloworld Travel’s brand and ability to generate
sales and increase sales in its retail division. This
risk is managed by the size of the agent network, the
geographic spread, a diverse portfolio of customers and
the continued focus on the management, mentoring and
engagement with our members.
Further details as to how the Company is managing its
key environmental, social and governance risks which
may impact on the business are set out in the Company’s
Corporate Social Responsibility which is available on the
Company’s website (www.helloworldlimited.com.au/
company-overview).
Supplier risk
Helloworld’s supply chain comprises many travel
providers and intermediaries. Credit risk in this supply
chain increases in uncertain economic environments.
Any interruption in the Group’s relationship with
suppliers or the failure of a supplier to honour
contractual obligations could result in adverse
reputational impacts on Helloworld Travel, and
potentially affect operations which may result in the
Group being unable to generate earnings equal to those
historically generated by those contracts.
Human resources risk
The Group relies on the talent and experience of its
Directors, senior management and employees. The loss
of any key personnel or an increase in staff turnover
could affect the performance of the Group’s business
and compromise its growth forecast.
29
While the Group has processes in place to ensure
compliance with applicable labour laws, the overlap of
workplace agreements, awards and industrial relations
rules can give rise to risks of breaches in the countries in
which the Group operates.
Political and social risks
Regional, political or social instability could negatively
impact the Group’s revenue streams and ultimately
its financial performance, access to new markets,
disruption to global supply chains, and other barriers to
the movement of people across international borders.
The diversification of the Groups businesses and a
diverse portfolio of customers provides the Group with
greater resilience if regional political or social instability
arises.
Regulatory risk
Regulatory action against the Group under legislation
and government policy may have a detrimental impact.
For instance; the Group, as a retailer of travel and
travel-related products, engages in large promotional
and advertising campaigns and processes employees’
and customers’ personal information. Any regulatory
scrutiny, media attention or any action taken against the
Group in any location where it operates, could be harmful
to the reputation of the Group including its operating and
financial performance.
Changes to regulatory requirements are broad ranging
and could immediately affect consumer demand and
attitude towards international or domestic travel.
Remaining compliant with, and abreast of additional
regulations and changes to existing regulations requires
diligent and ongoing monitoring by the Group.
Climate change and social sustainability
Transitioning to a lower-carbon economy will require policy,
legal, technology and market changes to address these.
Physical risks resulting from climate change could be event
driven with longer-term shifts in global climate patterns
creating financial implications for Helloworld Travel.
Helloworld Travel recognises the potential environmental
and social impact that tourists have on destinations
in Australia and internationally, we are committed to
a range of initiatives integrating sustainability in the
business. In each region that we operate, we aim to
reduce our environmental footprint across every aspect
of our business.
We are aware that the activities of our value chain also
have an impact on the environment. Our approach is to
ensure our long-term sustainability drives innovation
in travel solutions to assist our clients and networks to
achieve their own sustainability goals.
By combining innovative thinking with long-term
planning and collaboration, we will strive to balance
economic drivers with environmental, social and
governance sustainability initiatives for the benefit of all
our stakeholders.
Helloworld continues to work towards improving
oversight and management of sustainability issues and
risks over the long term.
IT systems risk
Helloworld Travel relies on the performance, reliability
and availability of its information technology,
communication and other business systems cyber and
information security is essential to protect business
critical intellectual property and privacy of data. Any
damage or failure to Helloworld’s key systems could
result in disruptions to its business (especially its online
services). Any failures of, or malicious attacks on
Helloworld Travel’s business systems or compromise
to the security of data (including personal information)
held by the Company may similarly impact Helloworld
Travel’s business and its reputation. The financial
penalties attached to data breaches are generally sizable
and could have an adverse effect on the reputation and
the financial performance of the Group.
Financial risk
Access to capital is a fundamental requirement to
achieve the Group’s business objectives and to meet its
financial obligations.
Developments in global financial markets due to the
continued impact and the uncertainty created by various
wars around the world may adversely affect the liquidity
of global credit markets and the Group’s ability to access
those markets, which could impact Helloworld’s future
financial performance and position.
30
directors' report
Agent network closure
Helloworld Travel’s agency networks are a vital part of
the business and a reduction in its agency network may
adversely impact Helloworld Travel’s brand and ability to
generate sales and increase sales in its retail division.
This risk is managed by the size of the agent network,
the geographic spread and the continued focus on the
management, mentoring and engagement with our
franchise and buying group members.
PEOPLE
At 30 June 2024, Helloworld Travel has 727 employees
(2023: 654), comprising 652 full-time equivalent
employees. Of the total number of employees across the
Group at year end 58.3% (2023: 56.9%) are female.
Employee expenditure for the year ended 30 June 2024
was $67 million.
The majority of the Group’s employees are based in
Australia, however, the Group has employees in other
countries.
The FTE breakdown by country as at 30 June 2024
is below:
Australia
415
64%
New Zealand
91
14%
Fiji
125
19%
Other
21
3%
Total
652
100%
Helloworld Travel businesses, including equity
accounted investments, have over 900 staff located in
Australia, New Zealand, Fiji and Greece.
Capital structure
At 30 June 2024, Helloworld Travel had 160,979,622
shares on issue of which the Executive Directors,
Andrew Burnes and Cinzia Burnes, along with their
direct related entities, own 24.22%. Sintack Pty Limited
and its associates hold 14.88% and FIL Limited holds
8.99% with the remaining 51.91% being held by other
shareholders including management.
SIGNIFICANT EVENTS AFTER THE
BALANCE DATE
Directors declared a 6.0 cent per share fully franked final
dividend to be paid on 19 September 2024.
With this exception, the Directors are not aware of any
further matter or circumstance that has arisen since 30
June 2024 and the date of signing of this report that has
significantly, or may significantly, affect the operations of
the Group, the results of the operations of the Group or
the state of the Group’s affairs in future financial years.
LIKELY DEVELOPMENTS
In the opinion of the Directors, it would prejudice the
interests of the Group to provide additional information,
except as described in this report, relating to likely
developments in the operations of the Group in
subsequent financial years.
64%
3%
19%
14%
Australia
New Zealand
Fiji
Other
FTE BREAKDOWN BY COUNTRY
31
REGULATION
The Group’s operations are not subject to any significant
environmental regulations under Commonwealth or
State legislation.
Helloworld Travel is an accredited member of the
International Air Transport Association (IATA).
Ongoing accreditation allows the Company to sell
international and domestic airline tickets on behalf of
IATA member airlines. It also allows access to IATA’s
Billing and Settlement Plan (BSP), which is an efficient
interface for invoicing and payment between the travel
agent and airlines.
INDEMNIFICATION AND
DIRECTORS AND OFFICERS
INSURANCE
INDEMNIFICATION
The Company has agreed to indemnify the Directors and
executive officers (or former Directors and executive
officers) of the Company against
(a) any liability (other than for legal costs) incurred by
the Director or executive officer;
(b) any legal costs reasonably incurred by the Director
or executive officer in connection with;
(i) any claim brought against or by the Director or
executive officer of the Company; or
(ii) any investigative proceeding, including (without
limitation) in obtaining legal advice for the
purposes of responding to, preparing for or
defending any of the above; and
(c) any legal costs reasonably incurred by the Director
or executive officer in or in connection with the
discharge of the Director or executive officer’s
duties as an Officer of the Company, provided that
the advice is obtained in accordance with the Board
Charter which requires approval from the Chairman
who will facilitate the obtaining of the advice and,
where appropriate, disseminate the advice to all
Directors.
DIRECTORS AND OFFICERS
INSURANCE
In accordance with its Constitution the Company, to the
maximum extent permitted by law, indemnifies each
Director and Group Company Secretary of Helloworld
against any liability incurred by that person as an Officer
of the Company. Liabilities covered include legal costs
that may be incurred in defending civil or criminal
proceeding that may be brought against the Officers
in their capacity as Officers of the Company or its
controlled entities.
During the year, Helloworld paid a premium for Directors’
and Officers’ liability insurance policies, which cover
all Directors and Officers of Helloworld. Details of the
amount of premium paid in respect of the Directors’ and
Officers’ liability insurance has not been disclosed as,
in accordance with normal commercial practice, such
disclosure is prohibited under the terms of the contract.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed
to indemnify its auditors, Ernst & Young Australia, as
part of the terms of its audit engagement agreement
against claims by third parties arising from the audit (for
an unspecified amount). No payment has been made to
indemnify Ernst & Young Australia during or since the
financial year.
32
directors' report
LETTER FROM THE REMUNERATION
COMMITTEE CHAIRMAN
Dear Shareholder,
On behalf of the Board of Directors, I present the
Helloworld Travel Limited Remuneration Report for the
financial year ended 30 June 2024.
The year completed heralds a period of growth for the
Group with TTV, revenue and profitability results all
significantly ahead of the prior year. This highlights the
team’s incredible efforts in driving solid performance
across all business units with strong focus on the
evolving travel landscape.
Economic and geopolitical uncertainty have presented
a challenge and the potential to impact travel trends.
Despite these challenges, Helloworld achieved terrific
results in the year by maintaining focus with the
continued resilience of its valued network.
GROUP PERFORMANCE AND
REMUNERATION OUTCOMES IN THE
YEAR ENDED 30 JUNE 2024
The Group continues to show improved momentum and
the Board recognises the importance of attracting and
retaining key executive talent in a competitive global
travel market. During the year, the salaries of the Chief
Executive Officer, the Chief Operating Officer and the
Chief Financial Officer were reviewed and increased,
reflective of the Group’s strong financial and non-
financial performance.
Garry Hounsell
Chairman of the Remuneration Committee
Chairman of Helloworld Travel Limited
27 August 2024
There were no LTIP shares allocated to executive KMP in
the year ended 30 June 2024. The Board will continue to
review the remuneration of key executives to ensure that
it remains aligned with our strategy and markets in which
we compete for talent.
During the year, the Non-Executive Director base fees
remained unchanged. In January 2024 the committee
fee for the Chair of the Audit & Risk Committee
was increased recognising the additional time and
commitment provided to the Company.
Yours faithfully,
33
REMUNERATION REPORT
(AUDITED)
This 2024 Remuneration Report outlines the remuneration arrangements for the KMP
of the Group in accordance with the requirements of the Corporations Act 2001 and its
Regulations.
The report contains the following sections:
1
REMUNERATION GOVERNANCE & FRAMEWORK
1.1
Persons to whom this report relates
1.2
Remuneration governance
1.3
Key Management Personnel (KMP) executive remuneration framework
1.4
Executive remuneration mix
2
EXECUTIVE REMUNERATION
2.1
Group performance and remuneration outcomes for 2024
2.2 Executive remuneration
2.3 Long Term Incentive Plan (LTIP)
2.4 Executive shareholdings
2.5 Executive service agreements
3
NON-EXECUTIVE DIRECTOR REMUNERATION
3.1
Non-Executive Director remuneration governance
3.2 Non-Executive Director remuneration structure
3.3 Non-Executive Director remuneration
3.4 Non-Executive Director shareholdings
34
directors' report
1 REMUNERATION GOVERNANCE
& FRAMEWORK
1.1 PERSONS TO WHOM THIS REPORT RELATES
This Remuneration Report has been prepared in accordance with section 300A of the Corporations Act 2001 (Cth).
The report covers the remuneration arrangements for the KMP of the Group. KMP are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group, directly
or indirectly, including any Director (whether executive or otherwise). For the purposes of this report, the term
‘executive’ encompasses the Executive Directors and the Executive KMP.
Directors and other KMP disclosed in this report are:
NAME
POSITION
NON-EXECUTIVE DIRECTORS
Garry Hounsell
Chairman and Non-Executive Director
Rob Dalton
Non-Executive Director
Hon. Martin Pakula
Non-Executive Director
Leanne Coddington
Non-Executive Director
EXECUTIVE DIRECTORS
Andrew Burnes, AO
Chief Executive Officer and Managing Director
Cinzia Burnes
Chief Operating Officer and Executive Director
EXECUTIVE KMP
Michael Smith
Chief Financial Officer
Chris Hunter
General Manager – New Zealand
Nick Sutherland (appointed effective 1 February 2024)
Head of Branded and Associate Network
Peter Crinis (resigned 23 January 2024)
Chief Commercial Officer
1.2 REMUNERATION GOVERNANCE
The Remuneration Committee of the Board is responsible for reviewing and assessing the remuneration policies
and making recommendations to the Board in respect of Director and KMP remuneration in line with current market
conditions. The KMP remuneration is designed to attract, retain, and motivate our experienced management team in
achieving the Group’s business objective. Remuneration is designed to promote the Company’s desired culture and
business ethics and align the activities of management with the interests of Helloworld’s shareholders.
Garry Hounsell (Chairman), Rob Dalton, Hon. Martin Pakula and Leanne Coddington are the members of the
Remuneration Committee during the year.
Under the terms of the Remuneration Committee Charter, most of the Committee members must be independent
Directors and the Chair of the Committee must be an independent Director. All members of the Committee are
non-executive Directors and are independent.
To ensure the Committee is fully informed when making decisions on remuneration, it may seek external remuneration
advice. No external consultants were engaged in the year ended 30 June 2024.
35
1.3 KMP EXECUTIVE REMUNERATION FRAMEWORK
The Group aims to reward executive KMP with a level and mix of remuneration commensurate with their position
and responsibilities within the Group and to reflect their level of experience and performance.
The remuneration framework for executive KMP embodies the following principles:
• provide competitive rewards to attract high calibre executives;
• structure the performance of KMP with performance measures and outcomes that reflect the Group’s annual
strategy; and
• link executive rewards to shareholder value.
To achieve these principles, the remuneration arrangements of the CEO and KMP executives are made up of one or
more of the following elements:
Fixed Annual Remuneration (FAR)
FAR is largely aligned with the salaries for comparable roles in Australian companies of similar size, industry, reach and
complexity.
Executives have the option of receiving FAR in a variety of forms including cash and fringe benefits. It is intended that
the payment of FAR will be optimal for the recipient without creating unnecessary costs for the Group.
Short Term Incentive (‘at risk’ remuneration)
Short-term ‘at risk’ components are linked to achievment of individual and the Group’s KPIs.
No short-term incentives were awarded to KMP in the year ended 30 June 2024.
From time to time the Board at its sole discretion may award performance based payments.
Long Term Incentive (LTIP) (‘at risk’ remuneration)
No LTIP programs were implemented in the year ended 30 June 2024 for KMP.
1.4 EXECUTIVE REMUNERATION MIX
The Board aims for balance between the components that make up remuneration to attract talented individuals,
thereby enticing executives to achieve results beyond the standard expected in the normal course of ongoing
employment.
36
directors' report
2 EXECUTIVE REMUNERATION
2.1
GROUP PERFORMANCE AND REMUNERATION OUTCOMES FOR 2024
The table below provides relevant Group performance information for the key financial measures over the last four
financial years:
2024
$’000
2023
$’000
2022
$’000
2021
$’000
Profit/(loss) after income tax from continuing
operations
30,729
19,185
(28,785)
(39,552)
Profit/(loss) attributable to the owners of Helloworld
Travel Limited
30,604
17,375
90,527
(35,496)
2024
2023
2022
2021
Basic earnings/(loss) per share (EPS cents)(i)
19.2
12.4
(18.1)
(25.7)
Total dividends declared (cents per share)
11.0
8.0
10.0
-
Opening share price at 1 July ($)
2.71
1.69
1.67
2.29
Closing share price at 30 June ($)
2.20
2.71
1.69
1.67
Total shareholder return(ii) (%)
(14.8)
65.09
7.19
(27.1)
(i)
Based on continuing operations only.
(ii) Total shareholder return is the closing share price less opening share price plus dividend divided by opening share price.
37
2.2 EXECUTIVE REMUNERATION
Short term
benefits
Share based
payments
Long term
benefits
Post-
employment
benefits
Salary
($)
Other1
($)
Bonus2
($)
Annual
Leave3
($)
Shares4
Long Service
Leave3
($)
Superannuation
($)
Total
($)
A Burnes (Chief Executive Officer and Managing Director)
2024
1,010,168
82,778
-
82,591
-
70,329
27,399
1,273,265
2023
848,462
14,272
500,000
32,632
-
35,581
25,292
1,456,239
C Burnes (Chief Operating Officer and Executive Director)
2024
795,168
56,106
-
60,132
-
26,546
27,399
965,351
2023
759,284
13,491
500,000
109,195
-
28,651
25,292
1,435,913
M Smith (Chief Financial Officer)
2024
486,582
4,130
-
1,238
326,250
8,817
27,399
854,416
2023
475,000
2,060
-
23,316
-
8,196
25,292
533,864
C Hunter (General Manager - New Zealand)
A$ equivalent5
2024
234,825
-
-
(10,060)
-
-
7,365
232,130
2023
228,924
-
-
14,607
-
-
6,589
250,120
N Sutherland (Head of Branded and Associate Network) (appointed 1 February 2024)
2024
173,109
355
46,000
9,808
-
2,833
12,963
245,068
FORMER KMP
P Crinis (Chief Commercial Officer) (3 July 2023 – 23 January 2024)
2024
363,066
-
-
-
-
-
18,649
381,715
N Cola (Group General Manager - Retail & Digital Transformation) (Resigned 31 March 2023)
2023
311,279
-
-
9,741
-
(4,898)
20,262
336,384
2024
TOTAL
3,062,918
143,369
46,000
143,709
326,250
108,525
121,174
3,951,945
2023
TOTAL
2,622,949
29,823
1,000,000
189,491
-
67,530
102,727
4,012,520
1.
Other - includes the provision of car parking, fringe benefit tax on all benefits.
2.
In FY23 the discretionary payments to A. Burnes and C. Burnes was for their continued leadership and superior performance in the completion
of the CTM transaction. A sign on bonus of $25,000 was paid to N. Sutherland in February 2024. A further $25,000 is payable in August 2024
at completion of his probation period.
3.
Annual leave represents the movement in provision balances. The accounting value may be negative, where a KMP leave balance decreases as
a result of taking more leave than the leave entitlement accrued during the year. Annual leave and long service leave includes movements in the
revaluation of the total entitlement reflecting salary increments during the period. Annual leave and long service leave provision movements
for A. Burnes, C. Burnes and M. Smith include the uplift arising from remuneration increments.
4.
During the period M. Smith was issued 125,000 shares from the residual balance of the shares under the omnibus incentive plan mechanism.
The shares were issued for nil consideration with no vesting period. The closing price on 16 February 2024 (date of issue) was $2.61.
5.
Payments made to C. Hunter are in New Zealand dollars and are converted into Australian dollars at the annual average exchange rate.
38
directors' report
2.3 LONG TERM INCENTIVE PLAN (LTIP)
A loan based LTIP was established during 2017. The overall objectives of the LTIP was to lock in key leaders for
an extended period, whilst at the same time, incentivising them to generate superior long-term returns to our
shareholders.
No shares have been issued or allocated to KMP under this loan funded LTIP during the current 2024 financial year
(2023: nil).
2.4 EXECUTIVE SHAREHOLDINGS
The number of shares in the Company held during the financial year by each Director and other members of KMP of
the Group, including their personally related parties, is set out below:
EXECUTIVE
Number of shares
at 1 July 2023
Additions:
share based
payments
Disposed
Number of shares
at 30 June 2024
Andrew Burnes, AO
10,495,531
-
-
10,495,531
Cinzia Burnes
10,138,014
-
-
10,138,014
The Burnes Group Pty Limited as
trustee for The Burnes Group
Service Trust
20,348,287
-
(2,000,000)
18,348,287
Longbush Nominees Pty Ltd as trustee
for the Burnes Superannuation Fund
10,000
-
-
10,000
Michael Smith
-
125,000
-
125,000
TOTAL
40,991,832
125,000
(2,000,000)
39,116,832
Andrew Burnes and Cinzia Burnes each have a beneficial interest in The Burnes Group Pty Limited which acts as the
Trustee of The Burnes Group Service Trust. They also have an interest in Longbush Nominees Pty Ltd which acts as
the Trustee of the Burnes Superannuation Fund of which they are both members.
2.5 EXECUTIVE SERVICE AGREEMENTS
Remuneration and other terms of employment for KMP are formalised in continuing contracts of employment.
These contracts specify the components of remuneration, benefits and notice periods. All contracts may be
terminated by either party subject to notice periods and subject to termination payments or benefits as detailed in the
table below:
EXECUTIVE
NOTICE PERIOD
TO BE GIVEN BY
KMP
NOTICE PERIOD
TO BE GIVEN BY
COMPANY
TERMINATION PAYMENTS OR BENEFITS
PAYABLE IF TERMINATION IS BY THE
COMPANY
Andrew Burnes, AO
Chief Executive Officer
and Managing Director
6 months
6 months
In accordance with normal statutory
entitlements
Cinzia Burnes
Chief Operating Officer
and Executive Director
6 months
6 months
In accordance with normal statutory
entitlements
Michael Smith
Chief Financial Officer
6 months
6 months
In accordance with normal statutory
entitlements
Chris Hunter
General Manger – New
Zealand
3 months
3 months
In accordance with normal statutory
entitlements
Nick Sutherland
Head of Branded and
Associate Networks
6 months
6 months
In accordance with normal statutory
entitlements
39
3 NON-EXECUTIVE DIRECTOR
REMUNERATION
3.1 NON-EXECUTIVE DIRECTOR REMUNERATION GOVERNANCE
The Remuneration Committee is responsible for reviewing and recommending remuneration arrangements to the
Board of Directors. The Board seeks to set aggregated remuneration levels for Directors, providing the Group the
threshold to attract and retain Directors in line with shareholders’ expectations.
In compliance with best practice corporate governance, Non-Executive Director remuneration is structured
separately and is distinct from executive remuneration; as detailed below.
3.2 NON-EXECUTIVE DIRECTOR REMUNERATION STRUCTURE
The aggregate remuneration of Non-Executive Directors is determined and voted on at a general meeting.
At the 2010 Annual General Meeting shareholders approved an aggregate remuneration of $1,500,000 per year.
The amount of aggregate remuneration to be approved by shareholders, together with the fee structure, is reviewed
annually. From time-to-time the Board considers external advice from consultants as well as for fees paid to Non-
Executive Directors for comparable companies. The Board is not proposing any change to the aggregate level of
remuneration. A breakdown of Director fees excluding superannuation is below.
ROLE
GROSS FEE
SUMMARY
Chairperson
$200,000
The payment to the Chair recognises the additional time and
commitment provided to the Company and is inclusive of Board
Committee fees.
Non-Executive Director $100,000
Fees paid in recognition of time commitment and service to the
Group’s Board.
Board Committee Fee
– Chairperson Audit
& Risk Committee
$40,000
From January 2024, the Committee fee for the Chair of the Audit &
Risk Committee was increased from $25,000 to $40,000.
2.6 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
The Group entered into a lease arrangement with Normanby Road Holdings Pty Ltd, a company owned by Andrew
Burnes and Cinzia Burnes, on 1 October 2021. The lease terminates on 1 July 2027. Lease payments of $1,785,238
(2023: $1,716,661) were made during the year.
The terms and conditions of all related party transactions were no more favourable than those available in similar
transactions.
40
directors' report
3.3 NON-EXECUTIVE DIRECTOR REMUNERATION
Short-term
benefits
Post-employment
benefits
NON-EXECUTIVE DIRECTOR
Cash salary
($)
Superannuation
($)
Total
($)
Garry Hounsell (Chairman)
2024
200,000
22,000
222,000
2023
192,308
20,192
212,500
Rob Dalton
2024
132,327
15,400
147,727
2023
120,192
12,620
132,812
Hon. Martin Pakula
2024
100,000
11,000
111,000
2023
57,692
6,058
63,750
Leanne Coddington
2024
100,000
11,000
111,000
2023
42,308
4,442
46,750
2024 TOTAL
532,327
59,400
591,727
2023 TOTAL
412,500
43,312
455,812
3.4 NON-EXECUTIVE DIRECTOR SHAREHOLDINGS
NON-EXECUTIVE DIRECTOR
Number of
shares at
1 July 2023
Additions
Number of
shares at
30 June 2024
Garry Hounsell (Chairman)
153,890
-
153,890
Rob Dalton
-
-
-
Hon. Martin Pakula
-
7,000
7,000
Leanne Coddington
-
45,000
45,000
TOTAL
153,890
52,000
205,890
41
42
directors' report
AUDITOR INDEPENDENCE
The Directors received the declaration of independence
on page 43 from Ernst & Young, the auditor of
Helloworld Travel Limited. This declaration confirms the
auditor’s independence and forms part of the Directors’
Report.
NON-AUDIT SERVICES
During the year the Company’s auditors performed no
other services in addition to their statutory duties.
The lead auditor’s independence declaration, as
required under section 307C of the Corporations
Act 2001, is set out on page 43 and forms part of the
Directors’ Report for the financial year ended 30 June
2024. Details of the amounts paid to Ernst & Young for
audit and non-audit services are set out in note 8.7 of the
Financial Statements.
ROUNDING
The amounts contained in this Directors’ Report and in
the Financial Report have been rounded to the nearest
$1,000 (where rounding is applicable) under the option
available to the Company under Australian Securities &
Investments Commission ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191.
Made in accordance with a resolution of the Directors.
Garry Hounsell
Chairman of Helloworld Travel Limited
Melbourne, 27 August 2024
43
AUDITOR’S INDEPENDENCE
DECLARATION
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Auditor’s Independence Declaration to the Directors of Helloworld
Travel Limited
As lead auditor for the audit of the financial report of Helloworld Travel Limited for the financial year
ended 30 June 2024, I declare to the best of my knowledge and belief, there have been:
a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b.
No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Helloworld Travel Limited and the entities it controlled during the
financial year.
Ernst & Young
Brett Croft
Partner
27 August 2024
44
corporate governance statement
INTRODUCTION
The Board of Helloworld Travel Limited (the Company)
is responsible for the corporate governance of the
Company and its controlled entities (Group) on
behalf of its shareholders with the prime objective
of protecting and enhancing shareholder value. The
Board is committed to the highest standards of ethics
and integrity and ensures that senior management
run the Group in accordance with these standards.
The governance practices are designed to support the
business and its growth by facilitating effective Board
and management decision making, providing clear lines
of responsibility and accountability and a commitment
to transparent communications with shareholders and
other stakeholders.
This statement has been approved by the Board and
outlines the main corporate governance framework
employed by the Company. The Company endorses
the ASX Corporate Governance Principles and
Recommendations 4th Edition (ASX CGP) and to
the governance standards and risk management
practices implemented by companies of a similar size
to Helloworld. Where the Company has not adopted a
recommendation, a detailed explanation is provided.
This statement is current at 27 August 2024.
1
LAYING SOLID
FOUNDATIONS FOR
MANAGEMENT
AND OVERSIGHT
The relationship between the Board and senior
management is critical to the Company’s long-term
success. The Board is responsible for the performance
of the Company in the short and long term and seeks to
balance competing objectives in the best interests of the
Group. The Board is responsible for setting the strategic
direction and risk appetite of the Company and for
leading the culture, values and behaviours of its people.
The role and responsibilities of the Board, the Chairman
and individual Directors are set out in the Company’s
Board Charter. A copy of the Board Charter is available
from the Corporate Governance section of the
Company’s website at www.helloworldlimited.com.au.
CORPORATE GOVERNANCE
STATEMENT
Matters expressly reserved to the Board are set out in
the Board Charter and include:
• setting the strategic direction of the Company and
monitoring the implementation of that strategy by
management;
• oversight of the Company, including its control and
accountability systems;
• appointing and removing the CEO, CFO and Company
Secretary;
• Board and executive management development and
succession planning;
• approving the annual operating budget;
• approving and monitoring the progress of major
capital expenditure, capital management and
acquisitions/ divestitures;
• monitoring compliance with legal, tax and regulatory
obligations;
• reviewing and ratifying systems of risk management,
governance, internal compliance and controls, code
of ethics and conduct, continuous disclosure, legal
compliance and other significant corporate policies;
• approving and monitoring financial and other
reporting to the market; and
• appointment, reappointment or replacement of the
external auditor.
Day-to-day management of the Company’s affairs and
the implementation of the corporate strategy and policy
initiatives are formally delegated by the Board to the
CEO, the CFO and other senior executives. Authority for
these matters is delegated to the CEO, CFO and senior
management under the Delegations of Authority Policy
and the delegations are subject to certain specified value
thresholds.
These matters include:
• incurring budgeted and unbudgeted operating
expenditure;
• incurring budgeted and unbudgeted capital
expenditure;
• write-downs, bad debts, asset or equity disposals and
acquisitions; and
• approval of entry into contracts.
CORPORATE GOVERNANCE
STATEMENT
45
Prior to a Director’s appointment, the Board ensures that
appropriate checks including background and reference
checks are conducted, which may be conducted by
external consultants and by other Directors of the
Company. Candidates also meet with each existing
Director prior to the Board’s decision to appoint them.
To ensure that Directors clearly understand the
requirements of the role, formal letters of appointment
are issued that contain the terms on which the Non-
Executive Directors are appointed.
SENIOR EXECUTIVE PERFORMANCE
With the assistance of the Remuneration Committee,
the Chairman undertakes an annual review of the
performance of the CEO against set key performance
indicators.
The CEO reviews the performance of his direct reports
against their agreed key performance indicators and
advises the Remuneration Committee.
2
STRUCTURE OF THE BOARD
BOARD COMPOSITION
The Directors determine the composition and size of the
Board in accordance with the Company’s Constitution.
The Constitution permits the Board to set upper and
lower limits with the number of Directors not to be less
than three. There are currently six Directors appointed
to the Board.
Under the Board Charter, the appointment and removal
of the Group Company Secretary is the responsibility of
the Board. The Group Company Secretary is responsible
for supporting the Board and its Committees in matters
to do with the effective functioning and governance of
the Company with its financial reporting and disclosure
obligations to the Australian Securities Exchange (ASX),
Australian Securities and Investment Commission (ASIC)
and other regulatory bodies.
The Company uses a Board Skills Matrix to ensure that
its membership includes an appropriate mix of skills,
experience and expertise and to assist in identifying
the skills most desired in potential candidates for Board
appointment. The matrix is also a tool for identifying
professional development opportunities for existing
Directors to refine and maintain the skills and knowledge
necessary to effectively perform their role as Directors.
Board Skills Matrix
Number out
of 6 Directors
Travel Industry Experience - Australia &
International
4
Franchise Operations
2
Technology & Digital Economy
4
Brand Development, Marketing
5
Governance, Compliance & Listed
Company Experience
6
Relationships/Stakeholder Management
6
Remuneration, Human Resources
5
Legal
2
Financial Experience
4
Strategic Planning & Risk
6
Health & Safety
6
Further detail regarding the Directors’ qualifications,
special responsibilities, skills, experience and expertise
(including the period of office held by each Director) is
set out in the Directors’ Report on pages 18 to 21.
DIRECTOR INDEPENDENCE
As at 30 June 2024, based on the factors relevant to
assessing the independence of Directors included in the
ASX CGP, four Directors, Garry Hounsell, Rob Dalton,
the Hon. Martin Pakula and Leanne Coddington are
deemed as independent.
The remainder of the Board is not independent for the
following reasons:
• Andrew Burnes is the Company’s Chief Executive
Officer and Managing Director, and a substantial
shareholder of the Company; and
• Cinzia Burnes is the Company’s Chief Operating
Officer and Executive Director and a substantial
shareholder of the Company.
The length of each Directors’ tenure as a Director is set
out in the Directors’ Report on pages 18 to 21.
46
corporate governance statement
INDEPENDENT DECISION MAKING
During the reporting period, the role of Chairman was
held by Garry Hounsell. Garry Hounsell is an independent
Non-Executive Director of the Company.
For the whole of the year Rob Dalton was the Chairman
of the Audit & Risk Committee. Rob Dalton is an
independent Non-Executive Director. The Hon. Martin
Pakula is an independent Non-Executive Director.
Leanne Coddington is an independent Non-Executive
Director.
As Executive Directors, Andrew Burnes in his role as CEO
and Managing Director and Cinzia Burnes in her role as
Chief Operating Officer are not considered by the Board
to be Independent Directors.
However, all Directors bring independent judgement to
their decisions.
The materiality thresholds used to assess Director
independence are set out in the Board Charter. The
Board believes that the interests of the shareholders are
best served by:
• the current composition of the Board which is
regarded as balanced with a complementary range
of skills, diversity and experience as detailed in the
Directors’ Report; and
• the Independent Directors providing an element of
balance as well as making a considerable contribution
in their fields of expertise.
The following processes are in place to ensure
decision making of the Board is subject to independent
judgement:
• a standing item on each Board Meeting agenda
requires Directors to focus on and declare any
conflicts of interest in addition to those already
declared;
• Directors are permitted to seek the advice of
independent experts at the Company’s expense,
subject to the approval of the Chairman; and
• all Directors must act in the best interests of the
Company.
These measures ensure that the interests of
shareholders are not jeopardised by a lack of
independence.
Majority of the Board are independent in compliance
with the requirements of Recommendation 2.4 of ASX
CGP.
NOMINATIONS AND GOVERNANCE
COMMITTEE
The Company has a Nominations & Governance
Committee. Its key responsibilities are the nomination,
appointment and re-election of Directors and are set out
in the Nominations & Governance Committee’s charter,
which is available on the Corporate Governance section
of the Company’s website.
The following Directors were members of the
Nominations and Governance Committee:
• Garry Hounsell (Chairman)
• Andrew Burnes, AO
• Cinzia Burnes
• Rob Dalton
• Hon. Martin Pakula
• Leanne Coddington.
Details of these Directors’ qualifications, their
attendance at Nominations & Governance Committee
meetings, and the number of meetings held during the
financial year are set out in the Directors’ Report on
pages 18 to 22.
The terms of reference, role and responsibility of the
Nominations & Governance Committee are consistent
with ASX CGP 2.1.
The Board seeks to ensure that its membership
represents an appropriate balance between Directors
with an external or fresh perspective. It reviews the
range of expertise of its members on a regular basis and
seeks to ensure that it has operational and technical
expertise relevant to the operations of the Company.
Directors are nominated, appointed and re-elected to
the Board in accordance with the Board’s policy as set
out in the Charter, the Company’s Constitution and the
ASX Listing Rules. In considering appointments to the
Board, the skills and experience of potential candidates
need to complement those of the existing Directors
along with an assessment of experience, expertise,
diversity and other attributes which benefit the Board in
fulfilling its responsibilities.
REMUNERATION COMMITTEE
During the year, the following Non-Executive Directors
were members of the Remuneration Committee:
• Garry Hounsell (Chairman)
• Rob Dalton
• Hon. Martin Pakula
• Leanne Coddington.
Details of these Directors’ qualifications, their
attendance at Remuneration Committee meetings, and
the number of meetings held during FY24 are set out in
the Directors’ Report on pages 18 to 22.
CORPORATE GOVERNANCE
STATEMENT
47
BOARD PERFORMANCE
The Board completes an annual self-assessment of
its performance and that of its committees, by way of
questionnaires. The results are collated and presented
to the Board for discussion at a Board meeting with
agreed action plans and individual performance goals
documented for the coming year.
Directors are encouraged throughout the year to raise
any issues of concern regarding the performance of
the Board Committee or individual Directors with the
Chairman, or, if the concern relates to the Chairman,
with the Chair of the Audit & Risk Committee.
An assessment of individual Director’s performance
was conducted during the financial year. This consisted
of a self-assessment questionnaire completed by
each Director and an individual discussion with the
Board Chairman. The assessment of the Chairman’s
performance was undertaken by each Director
individually.
ACCESS TO INFORMATION
Directors can access all relevant information necessary
to discharge their duties in addition to that provided in
Board papers and that of presentations from executive
management on business performance and issues of
note. With the approval of the Chairman, Directors may
seek independent professional advice, as required, at
the Company’s expense.
48
corporate governance statement
3
ETHICAL AND
RESPONSIBLE
DECISION MAKING
The Company has a Code of Ethics and Conduct
(‘Code’) in place that promotes ethical and responsible
practices and expectations for Directors, employees
and consultants of the Company in the discharge of their
roles. The Code reinforces the Company’s values and
is signed by each employee prior to commencing work.
Helloworld is committed to operating to the highest
standards of ethical behaviour and honesty and with
full regard for the health and safety of its employees,
customers and the wider community. The Company is
also focused on ensuring a safe and respectful place of
work for its employees. A copy of the Code of Ethics and
Conduct is available to all employees and is also available
in the Corporate Governance section of the Company’s
website.
DIVERSITY
The Board has established a Diversity Policy which
recognises and promotes diversity in the workplace
and provides a framework for new and existing
diversity related initiatives, strategies and programs
within the business. A copy of the policy is available in
the Corporate Governance section of the Company’s
website and the terms are consistent with ASX CGP4.
In accordance with this policy, the Board has established
the following measurable objectives for gender diversity:
• the Board encourages suitable applicants from women
for Board vacancies;
• the proportion of females on the Board should not fall
below current levels unless a transparent process fails to
succeed in attracting a suitable female candidate; and
• the proportion of females reporting to the CEO should
not fall below the current level unless the engagement
process fails in attracting suitable women candidates.
The percentage of female personnel reporting directly
to the CEO was 33% at 30 June 2024 and 30% at 30 June
2023.
Throughout the year the Company:
• continued the ongoing process of attracting talent in
the recruitment of people from diverse backgrounds;
• encouraged our employees to be active and to
maintain a healthy lifestyle; and
• promoted the awareness of mental health services
available to our employees and immediate family
members, through our employee assistance program.
PROPORTION OF WOMEN IN THE
ORGANISATION
There are 424 female employees in the Group
representing 58.3% of the workforce. There are two
females on the Board which represents 33% of the
Board.
SHARE TRADING
The Company’s Share Trading Policy sets out the
guidelines designed to protect Directors and employees
from intentionally or unintentionally breaching the
law. The Share Trading Policy prohibits employees
from dealing in the securities of the Company while in
possession of material non-public information.
In addition, employees and Non-Executive Directors are:
• prohibited from dealing in Helloworld securities during
defined closed periods; and
• are required to observe the ‘request to deal’
procedures before dealing in Helloworld securities
outside of the defined closed periods.
The policy is available in the Corporate Governance
section of the Company’s website.
PROTECTED DISCLOSURES
The Group’s Whistle-blower Policy encourages
Directors, employees and contractors to report any
allegations of misconduct by any team member,
with regard to illegal, unethical or improper conduct
in circumstances where they may be apprehensive
about raising their concern because of fear of possible
repercussions. The Whistle-blower Policy is available
in the Corporate Governance section of the Company’s
website.
4
INTEGRITY OF FINANCIAL
REPORTING
The Board has an Audit & Risk Committee to assist it in
the discharge of its responsibilities.
During the reporting period, the following Non-
Executive Directors were members of the Audit & Risk
Committee:
• Rob Dalton (Chairman)
• Garry Hounsell
• Hon. Martin Pakula
• Leanne Coddington.
The Audit & Risk Committee Charter is available in
the Corporate Governance section of the Company’s
website with the composition, operation and
responsibilities of the Committee being consistent with
the requirements of ASX CGP 4.1.
Details of the member Directors’ qualifications and
attendance at Audit & Risk Committee meetings are set
out in the Directors’ Report on pages 18 to 22.
Both the Board and Audit & Risk Committee closely
monitor the independence of the external auditors,
including the rotation of the external audit engagement
partner every five years.
The lead audit partner is responsible for the Group’s
external audit and is required to attend each Annual
General Meeting and must be available to answer
shareholder questions about the conduct of the audit
and the preparation and content of the Auditor’s Report.
CORPORATE GOVERNANCE
STATEMENT
49
5
TIMELY AND BALANCED
DISCLOSURE
To uphold the effective dissemination of information
and to ensure that Directors and employees are aware
of their obligations, the Company has adopted a
Continuous Disclosure Policy that outlines:
• the roles and responsibilities of the Board, Managing
Director and Group Company Secretary in ensuring
the Company complies with its disclosure obligations;
• the procedures adopted by the Company in meeting
its disclosure requirements; and
• the standards adopted for ensuring effective
communication with shareholders and market
participants.
All employees play an important role in enabling the
Company to comply with all necessary steps in the
disclosure process and to ensure that information that
needs to disclosed is reported in a timely manner.
All material ASX announcements are cleared with
the Board prior to release and a copy of the market
announcement are made available to each Director
promptly after release.
Copies of investor or analyst presentations are released
to the ASX Market Announcement Platform ahead of the
presentation.
A copy of the Continuous Disclosure Policy is available in the
Corporate Governance section of the Company’s website.
6
RIGHTS OF
SHAREHOLDERS
The Helloworld Travel Limited Shareholder
Communications Policy promotes effective engagement
and communication with the Company’s shareholders.
The Annual General Meeting (AGM) is an important
occasion for updating shareholders on the Company’s
performance. The Company encourages shareholder
participation at the AGM to ensure a high level of
accountability and understanding of the Company’s
strategy and goals.
The AGM offers shareholders the chance to ask
questions of and to hear from the Board.
Shareholders may also submit written questions to the
Company in advance of the AGM, thereby allowing the
Board to respond to feedback.
The Annual Report is available in the Corporate
Governance section of the Company’s website.
Company announcements to the ASX can be accessed
through the Company’s website.
Copies of charters and policies associated with the
governance of the Company are available on the
Company’s website.
The Company ensures that the explanatory notes
accompanying its ‘Notice of Annual General Meeting’
provide shareholders with all required information in
the Company’s possession relevant to a decision on
whether or not to elect or re-elect a Director at the AGM,
including a recommendation from the Board. These
notices are available under Investor and ASX Releases on
the Company’s website.
The CEO and CFO will endeavour to answer questions
from shareholders and analysts, providing the
information requested is not price sensitive.
Shareholders have the option to receive and send
communications to the Company and its Share Registry
electronically if they wish to do so. Online voting on
resolutions to be put at the Company’s AGM is available
to shareholders.
50
corporate governance statement
7
RECOGNISING AND
MANAGING RISK
The Company has a policy in place for the oversight and
management of its material business risks.
The Group takes a proactive approach to risk
management. The Board and Audit & Risk Committee
reviews and considers the Group’s risk profile on a
regular basis to ensure it supports the achievement of the
Company’s strategy, including determining the nature and
extent of risks the Board is prepared to take in the pursuit
of the Company’s objectives. The Board is also responsible
for reviewing, endorsing and overseeing the Company’s
risk management framework for managing financial and
non-financial risks at least annually, and satisfy itself
that it continues to be sound, deals adequately with
contemporary and emerging risks such as risk culture,
digital disruption, conduct risk, cyber-security, privacy
and data breaches and that the Company is operating
within the risk tolerance levels determined by the Board.
Helloworld is subjected to a range of business, economic
and social sustainability risks and seeks to limit material
exposures to its operations through measures that align
with its risk management framework.
Under the Risk Management Policy, the Board is
responsible for:
• overseeing and approving the Company’s risk
management, internal controls and compliance
systems;
• reviewing the effectiveness of the Company’s risk
management, internal control and compliance
systems at least annually, and satisfying itself that
management is adhering to the requirements of the
policy; and
• approving the delegations of authority for day-to-day
management of the Company’s operations.
Under the Risk Management Policy, the Audit & Risk
Committee is responsible for assisting the Board in
fulfilling its corporate governance responsibilities
regarding:
• the reliability and integrity of information for inclusion
in the Company’s financial statements;
• enterprise-wide risk management;
• compliance with legal and regulatory obligations,
including audit, accounting, tax and financial reporting
obligations;
• the integrity of the Company’s internal control
framework; and
• safeguarding the independence of the external and
internal auditors.
Every effort is made to identify and manage material
risks, however the risks that are not currently known or
listed may also adversely impact the future performance
of the Company.
The Company’s Executive Management Team (EMT)
also plays a role in identifying, assessing, monitoring
and managing risks. The EMT, assists the Audit & Risk
Committee to ensure that robust risk management
exists within the business. The EMT ensure that
sufficient levels of risk analysis are applied to critical
decisions, giving assurance to the Audit & Risk
Committee that risk processes are effective and
compliant with the Company’s Risk Management Policy.
A copy of the Risk Management Policy is available in
the Corporate Governance section of the Company’s
website.
The Board has received a report from management as to
the effectiveness of the Company’s management of its
material business risks during the year. The Board has
also received from the CEO and CFO a declaration that,
in their opinion, the financial records of the Company
have been properly maintained and that the financial
statements comply with the appropriate accounting
standards and give a true and fair view of the financial
position and performance of the Company and that
the opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating effectively.
Information in relation to the economic, environmental
and social sustainability risks facing the Company and
management of these is in the Operating and Financial
Review on pages 24 to 31 of the Annual Report.
INTERNAL AUDIT
The Company does not have an in-house internal audit
function. From time to time the Company engages an
external service provider to perform internal audit
services. The provider reports to the Audit & Risk
Committee. Internal control and risk management
are managed within each business unit and are the
responsibility of the EMT member.
The EMT member reviews and signs off on the risk
questionnaires which include key metrics and detailed
controlled risk issues for review by the Managing
Director and oversight by the Board.
MANAGEMENT OF MATERIAL
EXPOSURE TO ENVIRONMENTAL OR
SOCIAL RISKS
Helloworld understands that, doing business in Australia
and internationally, its shareholders, customers, the
community and employees anticipate that it will do so in
an environmentally responsible and socially sustainable
manner. The Audit & Risk Committee assist the Board in
overseeing the management of the Company’s exposure
to social and environmental risks.
CORPORATE GOVERNANCE
STATEMENT
51
8
REMUNERATING FAIRLY
AND RESPONSIBLY
Helloworld Travel’s remuneration objectives, philosophy
and arrangements are detailed in the Remuneration
Report, which forms part of the Directors’ Report.
DIRECTORS
The total annual fees paid to Non-Executive Directors
is set by the Company’s shareholders and allocated as
Directors’ Fees and Board Committee Fees by the Board
based on the roles undertaken by the Directors. Details
of Directors’ remuneration are in the Remuneration
Report. Retirement benefits are not paid, and Non-
Executive Directors do not participate in equity-based
remuneration schemes.
Details of the remuneration arrangements for the
Company’s Executive Directors are set out in the
Remuneration Report.
REMUNERATION
The Non-Executive Directors who were members of the
Remuneration Committee during the financial year are
set out in the Remuneration Committee section of this
Corporate Governance Statement.
The role of the Remuneration Committee is to assist the
Board to discharge its duties relating to remuneration
and oversee:
• the remuneration policy and framework (including
short and long-term incentive plans);
• the determination of levels of reward for the CEO and
general overview of the levels of reward for the CEO’s
direct reports; and
• the annual evaluation of the performance of the CEO.
The Remuneration Committee Charter is available in
the Corporate Governance section of the Company’s
website. The composition and operation of this
Committee is consistent with ASX CGP 8.1. Details
of the Directors’ qualifications and attendance at
Remuneration Committee meetings are set out in the
Directors’ Report on pages 18 to 22.
EXECUTIVE MANAGEMENT
Remuneration for executive management is deemed
competitive, to retain and attract appropriately skilled
and qualified executives to the Company.
Their remuneration comprises of a fixed cash element
and variable incentive component. The variable
component (if any) is subject to the Company’s financial
performance and the executive’s personal performance.
The Company’s Share Trading Policy prohibits
executives participating in the equity-based
remuneration scheme from entering any arrangement
that operate, or are intended to operate, to limit their
exposure to risk in relation to these shares.
A copy of the Share Trading Policy is available in the
Corporate Governance section of the Company’s website.
52
financial statements
CONSOLIDATED INCOME
STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
Note
2024
$’000
2023
$’000
Revenue
2.1
216,860
160,884
Other income
2.1
5,452
1,837
Interest income
2.2
5,896
3,193
TOTAL REVENUE AND OTHER INCOME
228,208
165,914
Employee benefit expenses
(66,578)
(53,044)
Advertising and marketing expenses
(12,804)
(8,561)
Selling expenses
(50,891)
(28,083)
Communication and technology expenses
(8,663)
(7,803)
Occupancy expenses
(2,313)
(1,803)
Operating expenses
(31,009)
(28,818)
Depreciation and amortisation expense
(18,798)
(18,023)
Interest expense
2.2
(1,217)
(703)
Share of profit of equity accounted investments
6.1
4,857
1,981
PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS
40,792
21,057
Income tax expense
2.4
(10,063)
(1,872)
PROFIT AFTER TAX FROM CONTINUING OPERATIONS
30,729
19,185
DISCONTINUED OPERATIONS
Loss from discontinued operations after income tax
1.5
-
(1,822)
PROFIT AFTER INCOME TAX FROM CONTINUING AND
DISCONTINUED OPERATIONS
30,729
17,363
PROFIT/(LOSS) AFTER INCOME TAX IS ATTRIBUTABLE TO:
Non-controlling interests
125
(12)
Helloworld Travel Limited shareholders
30,604
17,375
30,729
17,363
PROFIT/(LOSS) FOR THE YEAR ATTRIBUTABLE TO HELLOWORLD
TRAVEL LIMITED SHAREHOLDERS RELATES TO:
Continuing operations
30,604
19,197
Discontinued operations
-
(1,822)
30,604
17,375
Cents
Cents
Basic earnings per share
2.5
19.2
11.2
Diluted earnings per share
2.5
19.2
11.2
Basic earnings from continuing operations per share
2.5
19.2
12.4
Diluted earnings from continuing operations per share
2.5
19.2
12.4
The accompanying notes form part of this Financial Report.
53
FOR THE YEAR ENDED 30 JUNE 2024
Note
2024
$’000
2023
$’000
PROFIT AFTER TAX FROM CONTINUING AND DISCONTINUED
OPERATIONS
30,729
17,363
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign operations
5.5
(568)
878
Total items that may be reclassified subsequently to the income
statement
(568)
878
Items that will not be reclassified subsequently to the income
statement:
Gain/(loss) on revaluation of investment in CTM
(5,822)
3,123
Tax on revaluation of investment in CTM
1,746
(1,922)
Total items that will not be reclassified subsequently to the income
statement
5.5
(4,076)
1,201
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS)
(4,644)
2,079
TOTAL COMPREHENSIVE INCOME
26,085
19,442
TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO:
Non-controlling interests
125
(12)
Helloworld Travel Limited shareholders
25,960
19,454
26,085
19,442
The accompanying notes form part of this Financial Report.
CONSOLIDATED STATEMENT OF
OTHER COMPREHENSIVE INCOME
54
financial statements
CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2024
Note
2024
$’000
2023
$’000
CURRENT ASSETS
Cash and cash equivalents
5.1
161,752
146,888
Cash deposits
5.1
125
14,000
Trade and other receivables
3.1
56,195
42,744
Prepayments
7,070
6,653
Accrued revenue
3.2
28,369
29,311
Inventories
159
250
TOTAL CURRENT ASSETS
253,670
239,846
NON-CURRENT ASSETS
Trade and other receivables
3.1
191
263
Deferred tax assets
2.4
1,897
927
Equity accounted investments
6.1
28,123
18,793
Other investments
6.2
20,322
34,329
Property, plant and equipment
4.1
6,871
7,563
Right of use assets
4.2
20,649
20,211
Intangible assets
4.3
282,325
223,898
TOTAL NON-CURRENT ASSETS
360,378
305,984
TOTAL ASSETS
614,048
545,830
CURRENT LIABILITIES
Trade and other payables
3.3
184,047
153,978
Lease liabilities
5.3
6,570
5,266
Provisions
3.6
13,310
11,304
Deferred revenue
3.4
7,623
6,374
Other liabilities
3.5
494
383
Income tax payable
15,959
225
TOTAL CURRENT LIABILITIES
228,003
177,530
NON-CURRENT LIABILITIES
Lease liabilities
5.3
15,627
16,878
Deferred tax liabilities
2.4
39,883
46,992
Provisions
3.6
1,253
1,265
Other liabilities
3.5
936
140
TOTAL NON-CURRENT LIABILITIES
57,699
65,275
TOTAL LIABILITIES
285,702
242,805
NET ASSETS
328,346
303,025
EQUITY
Issued capital
5.4
487,631
471,231
Reserves
5.5
(10,001)
(7,097)
Accumulated losses
(149,864)
(161,564)
EQUITY ATTRIBUTABLE TO HELLOWORLD TRAVEL LIMITED
SHAREHOLDERS
327,766
302,570
Non-controlling interest
580
455
TOTAL EQUITY
328,346
303,025
The accompanying notes form part of this Financial Report.
55
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Non-
controlling
interests
$’000
Total
equity
$’000
BALANCE AT 1 JULY 2022
468,199
(17,625)
(146,609)
1,300
305,265
Profit/(loss) after tax
-
-
17,375
(12)
17,363
Other comprehensive income
-
2,079
-
-
2,079
Transfer of redemption reserve to accumulated
losses
-
7,200
(7,200)
-
-
Transfer of realised loss from investment
revaluation reserve to accumulated losses (refer
note 6.2)
-
4,323
(4,323)
-
-
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR
THE YEAR
-
13,602
5,852
(12)
19,442
Transactions with owners:
Acquisition of non-controlling interest
-
-
(2,366)
(833)
(3,199)
Dividends paid (refer note 5.6)
-
-
(18,483)
-
(18,483)
Franchise loyalty scheme shares lapsed in prior
years
-
(42)
42
-
-
Franchise loyalty scheme and Omnibus share
plan shares exercised in prior years
3,032
(3,032)
-
-
-
BALANCE AT 30 JUNE 2023
471,231
(7,097)
(161,564)
455
303,025
Issued
capital
$’000
Reserves
$’000
Accumulated
losses
$’000
Non-
controlling
interests
$’000
Total
equity
$’000
BALANCE AT 1 JULY 2023
471,231
(7,097)
(161,564)
455
303,025
Profit after tax
-
-
30,604
125
30,729
Other comprehensive loss
-
(4,644)
-
-
(4,644)
Transfer of realised loss from investment
revaluation reserve to accumulated losses (refer
note 6.2)
-
1,414
(1,414)
-
-
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR
THE YEAR
-
(3,230)
29,190
125
26,085
Transactions with owners:
Issue of share capital (refer note 5.4)
16,400
-
-
-
16,400
Share based payment
-
326
-
-
326
Dividends paid (refer note 5.6)
-
-
(17,490)
-
(17,490)
BALANCE AT 30 JUNE 2024
487,631
(10,001)
(149,864)
580
328,346
The accompanying notes form part of this Financial Report.
56
financial statements
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Note
2024
$’000
2023
$’000
OPERATING ACTIVITIES
Receipts from customers(i)
2,888,549
1,287,946
Payments to suppliers and employees(i)
(2,826,552)
(1,263,693)
Interest received
5,896
3,193
Interest paid
(1,217)
(703)
Income tax refund received
-
135
Income tax paid
(3,198)
-
NET OPERATING CASH FLOWS
5.1
63,478
26,878
INVESTING ACTIVITIES
Transfers from term deposits
43,002
-
Transfers to term deposits
(29,000)
(8,000)
Purchases of intangibles
4.3
(946)
(1,183)
Purchases of property, plant and equipment
4.1
(1,881)
(2,257)
Acquisition of Express Travel Group
6.4
(53,725)
-
Investment in Australiareiser Group
6.1
-
(2,929)
Investment in Phil Hoffmann Travel
6.1
(4,393)
-
Investment in Tin Alley venture capital fund
6.2
(483)
(68)
Payment for additional interest in Entertainment Logistix Pty Ltd
6.3
-
(3,200)
Proceeds from sale of Corporate Travel Management Limited shares
6.2
8,668
36,327
Proceeds from disposal of property, plant and equipment
327
570
Proceeds from sale of the Corporate business, net of costs
1.5
-
6,113
Dividends received from equity instruments
841
472
Dividends received from Phil Hoffmann Travel
6.1
120
-
Dividends received from Mobile Travel Holdings Pty Limited
6.1
2,000
1,500
NET INVESTING CASH FLOWS
(35,470)
27,345
FINANCING ACTIVITIES
Dividends paid
5.6
(17,490)
(18,483)
Payment of principal elements of leases
5.3
(6,522)
(5,257)
NET FINANCING CASH FLOWS
(24,012)
(23,740)
NET INCREASE IN CASH AND CASH EQUIVALENTS
3,996
30,483
Cash and cash equivalents at the beginning of the financial year
146,888
116,524
Cash and cash equivalents acquired
6.4
11,357
-
Foreign currency exchange rate changes on cash and cash equivalents
(489)
(119)
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
5.1
161,752
146,888
(i)
Include certain amounts (inclusive of GST) received and paid on behalf of customers.
The accompanying notes form part of this Financial Report.
57
NOTES TO THE
FINANCIAL STATEMENTS
BASIS OF PREPARATION
PAGE
1.1
Basis of preparation
58
1.2
Accounting policies
applicable to all financial
information
58
1.3
Critical accounting
estimates and judgements
59
1.4
New and amended
accounting standards and
interpretations impacting
Group
60
1.5
Discontinued operations
60
GROUP PERFORMANCE
2.1
Revenue and other income
62
2.2
Interest income and interest
expense
64
2.3
Segment information
64
2.4
Income taxes
67
2.5
Earnings per share
71
WORKING CAPITAL AND
PROVISIONS
3.1
Trade and other receivables
72
3.2
Accrued revenue
72
3.3
Trade and other payables
73
3.4
Deferred revenue
74
3.5
Other liabilities
74
3.6
Provisions
75
INVESTED CAPITAL
4.1
Property, plant and
equipment
76
4.2
Right of use assets
78
4.3
Intangible assets
79
4.4
Impairment of non-financial
assets
82
CAPITAL STRUCTURE AND
FINANCING ACTIVITIES
PAGE
5.1
Cash and cash equivalents
and cash deposits
84
5.2
Financing arrangements
85
5.3
Lease liabilities
86
5.4
Issued capital
87
5.5
Reserves
89
5.6
Dividends
90
GROUP STRUCTURE
6.1
Equity accounted
investments
90
6.2
Other investments
93
6.3
Subsidiaries
94
6.4
Business acquisitions
94
UNRECOGNISED ITEMS
7.1
Commitments
97
7.2
Contingent liabilities
97
7.3
Subsequent events
97
OTHER INFORMATION
8.1
Share based payments
98
8.2
Related party transactions
99
8.3
Parent entity financial
information
101
8.4
Deed of cross guarantee
102
8.5
Financial instruments and
risk management
105
8.6
Litigation matters
114
8.7
Auditor’s remuneration
114
58
financial statements
1.
BASIS OF PREPARATION
1.1
BASIS OF PREPARATION
Helloworld Travel Limited and its subsidiaries (Helloworld or the Group) is a for profit company domiciled and
incorporated in Australia. The Financial Report of Helloworld Travel Limited consists of the consolidated financial
statements of the Group, associated notes, consolidated entity disclosure statement, director’s declaration and
auditor’s report.
The consolidated financial statements have been prepared on a historical cost basis, except for debt and equity
financial assets and contingent consideration that have been measured at fair value.
This Financial Report was authorised for issue in accordance with a resolution of the Directors on 27 August 2024.
The Financial Report:
• is a General Purpose Financial Report which has been prepared on a going concern basis;
• has been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting Standards Board. Compliance with Australian
Accounting Standards ensures that the Financial Report complies with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB);
• has been prepared on the historical cost basis except for the revaluation of certain financial assets and financial
liabilities measured at fair value; and
• is presented in Australian dollars and amounts have been rounded to the nearest thousand dollars, unless otherwise
stated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191.
The accounting policies have been applied consistently to all periods presented in the Financial Report unless
otherwise stated.
1.2
ACCOUNTING POLICIES APPLICABLE TO ALL FINANCIAL
INFORMATION
This section sets out the material accounting policies upon which the financial statements of the Group are prepared
as a whole and not otherwise described in the Notes to the financial statements. Where a material accounting policy is
specific to a note to the financial statements, the policy is described within that note.
(A) PRINCIPLES OF CONSOLIDATION
The financial statements of the Group include the consolidation of Helloworld Travel Limited and its subsidiaries, being
the entities controlled by the parent entity during the year. Control exists where the Group:
• is exposed to, or has rights to, variable returns from the entity; and
• has the ability to affect those returns through its power to direct the activities of the entity.
The ability to approve the operating and capital budget of a subsidiary demonstrate that the Group has the existing
rights to direct the relevant activities of a subsidiary.
Subsidiaries are consolidated from the date the Group takes control and are deconsolidated from the date the Group
ceases control. When the Group loses control over a subsidiary, it derecognises the related assets (including goodwill),
liabilities, non-controlling interest (if applicable) and any components of post acquisition equity, with any resultant gain
or loss recognised in the Consolidated income statement.
All intragroup balances, transactions and unrealised gains and losses resulting from intragroup transactions are
eliminated in full.
Where, the Group’s interest is less than 100 per cent, the interest attributable to outside shareholders is reflected
in non-controlling interests. Non-controlling interests represent the portion of profit or loss and net assets not held
by Group shareholders and are presented separately in the Consolidated income statement and within equity in the
Consolidated balance sheet respectively.
(B) FOREIGN CURRENCY
The financial statements are presented in Australian dollars (AUD), which is the functional currency of Helloworld
Travel Limited (the Company).
59
Transactions and balances
Foreign currency transactions are translated into AUD using the exchange rates at the date of the transactions. Assets
and liabilities denominated in foreign currencies are translated to AUD at the reporting date at the following exchange
rates:
• monetary assets and liabilities - exchange rate applicable at reporting date; and
• non-monetary assets and liabilities measured at historical cost - exchange rate applicable at date of transaction.
Foreign exchange differences arising on translation of these transactions are recognised in the Consolidated income
statement in the period in which they arise. Exchange differences on transactions entered to hedge certain foreign
currency risks (if the Group recommences its hedging program) are deferred in equity if they relate to qualifying cash
flow hedges.
Investments in foreign operations
Foreign operations that have a functional currency different from the Group’s presentation currency are translated into
the presentation currency as follows:
• revenue and expenses are translated at the average exchange rate for the period or the exchange rate at the date of
the transaction (if considered more appropriate);
• assets and liabilities, including goodwill and fair value adjustments arising on consolidation, are translated at the
exchange rate applicable at reporting date; and
• equity items are translated at historical rates.
All resulting exchange differences are recognised in the Foreign Currency Translation Reserve (FCTR) in Other
Comprehensive Income (OCI). When a foreign operation is sold or any borrowings forming part of the net investment
are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
(C) GOODS AND SERVICES TAX (GST)
Revenue, expenses and assets are recognised net of Goods and Services Tax (GST), except where the GST incurred is
not recoverable from the taxation authority, in which case the GST is recognised as part of the expense or cost of the
asset.
Receivables and payables are stated with the amount of GST included. The net amounts of GST recoverable from or
payable to the taxation authorities are included as a current asset or current liability in the Consolidated balance sheet.
Cash flows are included in the Consolidated statement of cash flows on a gross basis. The GST components of cash
flows arising from investing and financing activities which are recoverable from or payable to taxation authorities are
classified as operating cash flows.
1.3
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the Financial Report requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. Actual results may
vary from these estimates under different assumptions and conditions. The estimates and judgements which involve
a higher degree of complexity or that have a significant risk of causing material adjustment to the carrying amounts of
assets and liabilities within the next period are described below:
(A) IMPAIRMENT OF NON-CURRENT ASSETS
Indicators of impairment may include changes in the Group’s operating and economic assumptions or impacts on
travel volumes due to geopolitical issues, pandemics and adverse key economic indicators which impact people’s
ability to afford travel.
The process of determining the recoverable amount of non-current assets requires the use of estimates, including
estimation of forecast revenue and costs as well as estimates of other key inputs such as Weighted Average Cost of
Capital (WACC) and terminal values. Refer note 4.4: Impairment of non-financial assets for the key assumptions used
in the calculation of recoverable amounts of non-current assets.
60
financial statements
(B) LEASE TERMS OF CONTRACTS WITH EXTENSION OPTIONS
Several of the Group’s property leases include extension and termination options. In determining the term of the lease
for the purposes of calculating the lease liability and the right of use asset, all facts and circumstances are considered
as to whether the Group is reasonably certain to exercise an extension option or not exercise a termination option.
Refer note 5.3: Lease liabilities for the key assumptions used in the calculation of carrying values of lease liabilities.
(C) RECOVERABILITY OF TRADE RECEIVABLES
Trade receivables relate to amounts invoiced to customers but not yet received. The determination of the appropriate
loss allowance on trade receivables is based on historical loss rates adjusted to reflect current and forward looking
market factors. Refer note 3.1: Trade and other receivables for the key assumptions used in the calculation of carrying
values of trade receivables.
(D) OVERRIDE COMMISSION REVENUE, INCLUDING ACCRUED OVERRIDE COMMISSION
REVENUE
The Group enters into override commission revenue contracts with airlines and other suppliers. Override commission
is calculated for the supplier’s contract period, based on the value of eligible travel (or travel related product) during
the period at the expected contracted applicable override rates. Eligible travel for the financial year is availed travel.
Determination of the appropriate override rate is based on an estimation of the expected eligible travel sales for the
contract period (based on actual sales, forecast bookings and historical trends). Refer note 2.1: Revenue and other
income for the key assumptions used in the calculation of override commission revenue.
Accrued override commission is the estimate of override commission revenue earned during the respective customer
contract period but not yet invoiced at balance date. It is considered a contract asset in accordance with applicable
accounting standards. The determination of the appropriate loss allowance on accrued revenue is based on historical
loss rates adjusted to reflect current and forward-looking market factors. Refer note 3.1: Trade and other receivables for
the key assumptions used in the calculation of recoverable amounts of accrued override commission revenue.
1.4 NEW AND AMENDED ACCOUNTING STANDARDS AND
INTERPRETATIONS IMPACTING THE GROUP
There were no significant impacts arising from accounting standards or interpretations adopted for the first time in
these financial statements.
There are new and amended accounting standards and interpretations that are issued, but not yet effective up to the
date of issuance of the Group’s consolidated financial statements.
Currently, the Group is assessing the impact of the IFRIC agenda decision regarding disclosing material income
and expenses as detailed in AASB 8 Operating Segments and AASB 18 Presentation and Disclosure in Financial
Statements.
All other amendments are not expected to have a material impact on the Group’s financial statements.
1.5
DISCONTINUED OPERATIONS
(A) SALE OF CORPORATE TRAVEL MANAGEMENT BUSINESS
On 15 December 2021, the Group announced that it had entered into a binding agreement to divest its corporate travel
management business (Corporate business) in Australia and New Zealand to Corporate Travel Management (CTM) for
an enterprise value of $175.0 million. Proceeds received on 31 March 2022 consisted of:
• cash of $100.0 million;
• interim working capital adjustment of $4.078 million; and
• CTM shares to the value of $75.0 million, based on the placement value to CTM shareholders of $21 per share
resulting in 3,571,429 CTM shares. (Refer note 6.2: Other investments for shares disposed in FY23 and the related
subsequent accounting).
All conditions precedent were met by the Group and the sale was completed on 31 March 2022. Accordingly, entities
comprising the Corporate business were derecognised at that date and the Corporate business was classified as a
discontinued operation by the Group.
In addition to the cash of $104.1 million received on 31 March 2022, the Group recognised additional proceeds of $7.9
million at 30 June 2022. This represented the final working capital adjustment the Group believed it was entitled to
receive under the Share Sale Agreement. Subsequent negotiations with CTM resulted in an agreement of a final working
capital adjustment of $6.1 million and this was received by the Group on 27 March 2023. The difference between the
estimated working capital receivable and the final amount received of $1.8 million was recognised as an expense
attributable to discontinued operations in the Consolidated income statement in the prior year.
61
(B) NET LOSS FROM DISCONTINUED OPERATIONS DURING THE PERIOD
2024
$'000
2023
$'000
Revenue
-
-
Expenses(i)
-
(1,822)
NET LOSS BEFORE INCOME TAX
-
(1,822)
Income tax expense(i)
-
-
NET LOSS AFTER INCOME TAX DURING THE PERIOD
-
(1,822)
TOTAL LOSS FROM DISCONTINUED OPERATIONS AFTER INCOME TAX
-
(1,822)
MATERIAL ACCOUNTING POLICIES
A discontinued operation is a component of the Group where the operations and cash flows can be clearly
distinguished from the rest of the Group. It represents a major line of operations and is part of a single co-ordinated
plan to dispose of a separate major line of operations.
Classification of the Corporate business as a discontinued operation occurred on the disposal date (31 March 2022).
(i)
Represents the finalisation of the working capital adjustment associated with the sale of the Corporate business, tax incurred is offset
against carried forward tax losses.
62
financial statements
2.
GROUP PERFORMANCE
2.1
REVENUE AND OTHER INCOME
2024
$'000
2023
$'000
Commissions
173,930
117,981
Transaction and services fees
2,891
3,628
Marketing related activities
16,317
9,798
Freight revenue
16,743
24,043
Other revenue(i)
6,979
5,434
REVENUE FROM CONTRACTS WITH CUSTOMERS
216,860
160,884
Sundry income
4,611
1,281
Dividends received
841
556
OTHER INCOME
5,452
1,837
Interest income
5,896
3,193
TOTAL REVENUE AND OTHER INCOME
228,208
165,914
(i)
Other revenue includes franchise fees and revenue from the Fiji transport business.
MATERIAL ACCOUNTING POLICIES
(A) COMMISSIONS
At source commissions - retail
The Group’s Retail businesses receive at source commission from suppliers for the arrangement of travel, tours
and travel related products. Revenue for these businesses is recognised on the date travel is ticketed as this is
when the performance obligation is met.
At source commissions - wholesale and inbound
The Group’s Wholesale business purchases individual travel components from hotels, transportation providers
(bus, rail and cruise) and attractions. Components are packaged into marketable holiday travel packages and
tours for the travel leisure market to local and overseas destinations. The commission revenue recognised is
the margin received between the arranged purchase price of travel products and the retail price of the holiday
package, net of commissions paid to travel agents. Revenue is recognised at the point of time when all aspects of
holiday packaged travel, including booking, ticketing and management of all booking amendments prior to travel
have been arranged (departure date), as this is when the performance obligation has been met.
The Group’s Inbound business in Australia, New Zealand and Fiji receive at source commission for the
arrangement of airline tickets, tours and travel. Revenue is recognised at the point of time when the traveller’s
tour or travel has commenced (departure date) as this is when the performance obligation has been met.
Override commission revenue
The Group receives override commissions from airline and leisure partners across the air, land, cruise and
travel products sold. Override commission for the period is based on eligible availed travel for that period
at the forecast contracted tiered override rate. The forecast contracted tiered override rate is based on an
assessment of actual sales, forecast bookings and historical trends. Eligible availed travel is the travel for
which overrides are paid by the supplier. Each supplier has separate contractual arrangements with the Group
and rates, performance tiers and periods vary accordingly. Revenue is recognised on departure date or travel
commencement date as this reflects the point in time when the consideration is highly probable of not being
subject to reversal in future periods.
Other types of commissions
The Group also receives commissions from suppliers for the sales of travel related products, such as insurance
and foreign currency purchasing services and incentives from suppliers. These commissions are recognised
as revenue at the point of sale as they are non-refundable, the performance obligation has been met, and the
amount can be reliably measured.
63
(B) TRANSACTION AND SERVICE FEES
The Group’s air consolidation business charges customers a transaction fee when travel arrangements are
booked (via online or travel consultant). Transaction and service fees are recognised as revenue at the point of
time tickets are issued (ticketed date) as this is the time the performance obligation is met and the transaction
price is fixed. Where amendments occur after the initial transaction, these are treated separately, and additional
transaction fees applied.
(C) MARKETING RELATED ACTIVITIES
The Group receives contributions from suppliers and retail network members to compensate for the costs
incurred in relation to the production of brochures, marketing campaigns and activities and for travel
conferences organised by the Group. Revenue is recognised at a point of time when the marketing related
activity is undertaken as the performance obligation to the supplier has been met.
(D) FREIGHT REVENUE
Freight and logistics revenue is generated through the entertainment and logistics business in Australia. Revenue
is recognised when the service has been delivered at the total fee charged to the customer as the Group acts as
the principal in delivering the service to the customer. Revenue from entertainment tours is recognised over time
based on the percentage of the completed events, or in some cases, based on the actual costs incurred by the
Group while delivering the service.
(E) OTHER REVENUE
Franchise fees
The Group receives network membership fees and information technology service fees from retail network
members for services provided to the Group’s retail network members. Network membership fees are
recognised over a period of time on a straight-line basis over the life of the contract. Information technology
service fees are recognised over time when the services are provided.
Transport revenue
Transport revenue is generated from the tourist transport business in Fiji. Revenue is recognised at a point in
time the service is delivered and at the fee charged to the customer as the Group is acting as the principal in the
delivery of the service to the customer.
64
financial statements
2.2 INTEREST INCOME AND INTEREST EXPENSE
2024
$'000
2023
$'000
INTEREST INCOME
5,896
3,193
Interest expense on lease liabilities
(1,217)
(703)
INTEREST EXPENSE
(1,217)
(703)
NET INTEREST EXPENSE
4,679
2,490
MATERIAL ACCOUNTING POLICIES
Interest income is interest earned on transactional bank accounts and cash deposits.
Interest costs are recognised in the Consolidated income statement in the period in which they are incurred. Lease
interest costs comprise interest on lease liabilities calculated using the lessee’s incremental borrowing rate. Non-
lease interest costs comprise interest on borrowings calculated using the effective interest method and the effect of
unwinding the discount on make good provisions.
2.3 SEGMENT INFORMATION
2.3.1 DESCRIPTION OF SEGMENTS
The Chief Executive Officer and the Board are the Chief Operating Decision Maker (CODM). Consistent with the
prior year, the CODM assessed the Group’s performance and made strategic decisions on the basis of a geographical
perspective for the travel business and from a product perspective for the transport, logistics and warehousing
business, resulting in four reportable segments.
TRAVEL OPERATIONS
AUSTRALIA
TRAVEL OPERATIONS
NEW ZEALAND
TRAVEL OPERATIONS
REST OF WORLD
TRANSPORT, LOGISTICS
AND WAREHOUSING
• Retail distribution
operations
• Air ticketing
• Wholesale and inbound
• Shared service
functions
• Retail distribution
operations
• Air ticketing
• Wholesale and inbound
• Shared service
functions
• Inbound
• Tourism Transport Fiji
• Shared service
functions
• Entertainment industry
transport and logistics
• Warehousing
65
2.3.2 SEGMENT INFORMATION PROVIDED TO THE CODM
The CODM assesses the performance of the Group and operating segments based on the financial measure of
Underlying EBITDA, which is not a measure prescribed by Australian Accounting Standards.
On 11 August 2023 the Group acquired Express Travel Group. The results of operations from this date are included in
the current year Travel Operations Australia and Travel Operations New Zealand segment results.
EBITDA represents earnings before interest expense, tax, depreciation and amortisation. Underlying EBITDA
represents EBITDA excluding significant items.
Segment results for the Group are shown below:
Travel
Operations
Australia
$'000
Travel
Operations
New Zealand
$'000
Travel
Operations
Rest of World
$'000
Transport,
Logistics and
Warehousing
$’000
Total
$’000
YEAR ENDED 30 JUNE 2023
Commissions
98,258
18,707
1,016
-
117,981
Transaction and service fees
3,532
96
-
-
3,628
Marketing related activities
8,424
1,374
-
-
9,798
Freight revenue
-
-
-
24,043
24,043
Other revenue
2,641
226
2,567
-
5,434
REVENUE FROM CONTRACTS WITH
CUSTOMERS
112,855
20,403
3,583
24,043
160,884
Sundry income
898
200
28
155
1,281
Dividends received
556
-
-
-
556
Interest income
2,686
505
-
2
3,193
SEGMENT REVENUE AND OTHER
INCOME
116,995
21,108
3,611
24,200
165,914
Segment expenses
(86,070)
(13,776)
(2,671)
(21,259)
(123,776)
Share of profit of equity accounted
investments
1,981
-
-
-
1,981
UNDERLYING EBITDA
32,906
7,332
940
2,941
44,119
YEAR ENDED 30 JUNE 2024
Commissions
139,298
33,737
895
-
173,930
Transaction and service fees
2,760
131
-
-
2,891
Marketing related activities
12,744
3,573
-
-
16,317
Freight revenue
-
-
-
16,743
16,743
Other revenue
3,857
273
2,849
-
6,979
REVENUE FROM CONTRACTS WITH
CUSTOMERS
158,659
37,714
3,744
16,743
216,860
Sundry income
4,121
2
115
373
4,611
Dividends received
841
-
-
-
841
Interest income
4,438
1,457
-
1
5,896
SEGMENT REVENUE AND OTHER
INCOME
168,059
39,173
3,859
17,117
228,208
Segment expenses
(120,855)
(25,752)
(3,045)
(15,951)
(165,603)
Share of profit of equity accounted
investments
4,857
-
-
-
4,857
UNDERLYING EBITDA
52,061
13,421
814
1,166
67,462
66
financial statements
2.3.3 OTHER SEGMENT INFORMATION: RECONCILIATION OF EBITDA AND UNDERLYING EBITDA
2024
$’000
2023
$’000
UNDERLYING EBITDA
67,462
44,119
Less significant items:
Acquisitions related costs
(1,298)
-
Systems replacement related costs
(1,382)
-
Gain on a legal matter (net of legal costs)
2,874
-
Loss on a legal matter (including legal costs)
(6,196)
-
Settlement of supplier incentives
-
(2,838)
Employee bonuses relating to Corporate business divestment
-
(1,000)
Restructuring and other costs
(653)
(498)
TOTAL SIGNIFICANT ITEMS(i)
(6,655)
(4,336)
EBITDA
60,807
39,783
Less non-cash items and interest expense:
Depreciation of property, plant and equipment
(2,526)
(2,934)
Depreciation of right of use assets
(6,419)
(4,473)
Amortisation of intangible assets
(9,853)
(10,616)
Interest expenses on lease liabilities
(1,217)
(703)
TOTAL NON-CASH ITEMS AND INTEREST EXPENSE
(20,015)
(18,726)
PROFIT BEFORE INCOME TAX
40,792
21,057
(i)
Significant items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact
is considered material to the financial statements.
2.3.4 GEOGRAPHICAL INFORMATION
Non-current assets by location of assets
Total non-current assets (other than deferred tax assets) are located in:
• Australia $307.9 million (2023: $262.8 million);
• New Zealand $36.7 million (2023: $31.4 million);
• Other countries $3.7 million (2023: $3.9 million); and
• Transport, Logistics and Warehousing $10.2 million (2023: $6.9 million).
67
2.4 INCOME TAXES
2.4.1 AMOUNTS RECOGNISED IN THE CONSOLIDATED INCOME STATEMENT
2024
$’000
2023
$’000
Current income tax expense
(14,828)
(2,443)
Deferred income tax benefit relating to the origination and reversal of temporary
differences (i)
3,615
328
Adjustment in respect of current tax expense of prior year
1,150
243
INCOME TAX EXPENSE
(10,063)
(1,872)
(i) Deferred income benefit comprises:
Increase in deferred tax assets
2,530
3,873
(Increase)/decrease in deferred tax liabilities
1,085
(3,545)
DEFERRED INCOME TAX BENEFIT
3,615
328
2.4.2 RECONCILIATION BETWEEN PRE-TAX PROFIT AT THE STATUTORY TAX RATE
AND TAX EXPENSE
2024
$’000
2023
$’000
PROFIT BEFORE INCOME TAX
40,792
21,057
Income tax expense at the statutory tax rate of 30%
(12,238)
(6,317)
Add/(deduct) tax effect of:
Non-deductible amortisation
(415)
(415)
Tax losses recognised
-
3,889
Tax losses de-recognised
(4)
(31)
Franking credit and withholding tax offset utilised
683
569
Differences in overseas tax rates
163
135
Other non-deductible items
598
55
Over provision in prior year
1,150
243
INCOME TAX EXPENSE
(10,063)
(1,872)
68
financial statements
2.4.3 DEFERRED TAX ASSETS
2024
$’000
2023
$’000
Employee benefits
2,980
2,429
Payables and accruals
8,292
6,420
Lease liabilities
6,505
6,414
Tax losses(i)
1,172
440
Other
2,195
1,606
GROSS DEFERRED TAX ASSETS
21,144
17,309
Set-off of deferred tax assets and liabilities pursuant to set-off provisions
(19,247)
(16,382)
NET DEFERRED TAX ASSETS
1,897
927
(i) At 30 June 2024 the Group had an unrecognised deferred tax benefit related to income tax losses of $0.7 million (2023: $0.7 million).
The utilisation of these tax losses depends on meeting the requirements of the tax law in the countries to which they relate.
(ii) As at 30 June 2024, there are no unused capital losses (2023: nil).
MOVEMENT IN TEMPORARY DIFFERENCES DURING THE YEAR:
Employee
benefits
$’000
Payables
and
accruals
$’000
Lease
liabilities
$’000
Tax
losses
$’000
Other
$’000
Total
$’000
BALANCE AT 1 JULY 2022
2,337
6,042
6,323
5,040
1,440
21,182
(Charged)/credited to
- profit or loss
92
378
91
(4,600)
166
(3,873)
BALANCE AT 30 JUNE 2023
2,429
6,420
6,414
440
1,606
17,309
BALANCE AT 1 JULY 2023
2,429
6,420
6,414
440
1,606
17,309
(Charged)/credited to
- additions: through business
combinations(i)
-
116
-
-
84
200
- profit or loss
551
1,672
189
(21)
139
2,530
- prior year adjustments
-
84
(98)
753
382
1,121
- foreign exchange
-
-
-
-
(16)
(16)
BALANCE AT 30 JUNE 2024
2,980
8,292
6,505
1,172
2,195
21,144
(i) Represents additions to deferred tax assets as a result of the acquisition of Express Travel Group.
69
2.4.4 DEFERRED TAX LIABILITIES
2024
$’000
2023
$’000
Investment in equity accounted investments
2,648
4,823
Accrued revenue
14,502
16,119
Property, plant and equipment
1,543
1,813
Right of use assets
6,050
5,844
Intangibles
33,482
34,042
Other
905
733
GROSS DEFERRED TAX LIABILITIES
59,130
63,374
Set-off of deferred tax assets and liabilities pursuant to set-off provisions
(19,247)
(16,382)
NET DEFERRED TAX LIABILITIES
39,883
46,992
MOVEMENT IN TEMPORARY DIFFERENCES DURING THE YEAR:
Other
investments
$’000
Accrued
revenue
$’000
Property
plant and
equipment
$’000
Right of
use assets
$’000
Intangibles
$’000
Other
$’000
Total
$’000
BALANCE AT 1 JULY 2022
8,142
13,315
-
5,508
34,426
2,225
63,616
(Charged)/credited to
- profit or loss
467
2,804
1,813
336
(384)
(1,492)
3,544
- other comprehensive
income
(3,786)
-
-
-
-
-
(3,786)
BALANCE AT 30 JUNE 2023
4,823
16,119
1,813
5,844
34,042
733
63,374
BALANCE AT 1 JULY 2023
4,823
16,119
1,813
5,844
34,042
733
63,374
(Charged)/credited to
- additions: through
business combinations(i)
-
-
-
-
-
11
11
- profit or loss
822
(1,617)
(270)
369
(560)
171
(1,085)
- other comprehensive
income
(2,997)
-
-
-
-
-
(2,997)
- prior year adjustments
-
-
-
(163)
-
(8)
(171)
- foreign exchange
-
-
-
-
-
(2)
(2)
BALANCE AT 30 JUNE 2024
2,648
14,502
1,543
6,050
33,482
905
59,130
(i) Represents additions to deferred tax liabilities as a result of the acquisition of Express Travel Group.
UNRECOGNISED TEMPORARY DIFFERENCES
The Group had undistributed earnings for controlled entities which if paid out as dividends would be non-assessable
exempt income and not subject to tax in the hands of the recipient. Therefore, no deferred tax liability has been
recorded in relation to the undistributed earnings.
70
financial statements
MATERIAL ACCOUNTING POLICIES
Income tax expense/benefit in the Consolidated income statement for the period presented comprises current
and deferred tax. Income tax is recognised in the profit or loss except to the extent that it relates to items
recognised in other comprehensive income, or directly in equity, in which case the tax is also recognised in other
comprehensive income, or directly in equity, respectively.
(A) CURRENT TAX
Current tax payable represents the amount expected to be paid to taxation authorities on taxable income for the
period, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable
in respect of previous periods.
(B) DEFERRED TAX
Deferred tax is calculated using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting and taxation purposes. Deferred tax is measured
at the rates that are expected to apply in the period in which the liability is settled, or asset realised, based on tax
rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit or in relation to the initial recognition of goodwill.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences or unused tax losses and tax offsets can be utilised. Deferred
tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.
(C) TAX CONSOLIDATION LEGISLATION
Helloworld Travel Limited and its wholly owned Australian controlled entities have implemented the tax
consolidation legislation. The head entity, Helloworld Travel Limited, and its 100% wholly-owned subsidiaries in
the Australian income tax consolidated group account for their own current and deferred tax amounts. These
tax amounts are measured as if each entity in the Australian income tax consolidated group continues to be a
standalone taxpayer.
In addition to its own current and deferred tax amounts, Helloworld Travel Limited also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the Australian income tax consolidated group where applicable.
(D) NATURE OF TAX FUNDING ARRANGEMENTS AND TAX SHARING AGREEMENTS
Helloworld Travel Limited, in conjunction with the other 100% wholly owned subsidiary members of the
Australian income tax consolidated group, has entered into a tax funding arrangement which sets out the funding
obligations of members of the Australian income tax consolidated group in respect of the Group’s tax liability.
The tax funding arrangements require payments to/from the head entity equal to the current tax liability/asset
assumed by the head entity and any deferred tax asset relating to tax losses be assumed by the head entity,
resulting in the head entity recognising an intercompany receivable/payable equal in amount to the tax liability/
asset assumed. The intercompany receivable/payable is at call.
The amounts receivable/payable under the tax funding arrangement are due upon receipt of the funding advice
from the head tax entity, which is issued as soon as practicable after the end of each financial year. The head tax
entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.
Where an entity exits the Australian tax consolidated group, the entity is required to make a payment to the head
entity equal to its tax liability (or a reasonable estimate of that amount) for the period in which the exit occurs. As
a result, the exiting entity is released from any group tax liability for that period.
71
2.5 EARNINGS PER SHARE
2024
$’000
2023
$’000
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
ENTITY USED IN EARNINGS PER SHARE
Profit from continuing operations
30,604
19,197
Loss from discontinued operations
-
(1,822)
30,604
17,375
2024
Number
2023
Number
WEIGHTED AVERAGE NUMBER OF SHARES (WANOS) USED IN EARNINGS PER
SHARE
Basic earnings per share(i) (ii) (iii)
159,595,653
155,027,845
Diluted earnings per share
159,595,653
155,027,845
Cents per share
2024
2023
BASIC EARNINGS/(LOSS) PER SHARE
Continuing operations
19.2
12.4
Discontinued operations
-
(1.2)
19.2
11.2
Cents per share
2024
2023
DILUTED EARNINGS/(LOSS) PER SHARE
Continuing operations
19.2
12.4
Discontinued operations
-
(1.2)
19.2
11.2
(i)
At 30 June 2024, Helloworld Travel Limited had 160,979,622 (2023: 155,027,845) ordinary shares on issue.
(ii) On the 11 August 2023, the Group issued 3,647,998 fully paid ordinary shares as part consideration for the acquisition of Express Travel
Group (Tranche 1). On 2 January 2024, the Group issued a further 1,823,998 fully paid ordinary shares as final consideration for the acquisition
of Express Travel Group (Tranche 2).
(iii) On 25 August 2023, the Group issued 479,781 fully paid ordinary shares as part consideration for the acquisition of Phil Hoffmann Travel.
72
financial statements
3.
WORKING CAPITAL AND PROVISIONS
3.1
TRADE AND OTHER RECEIVABLES
2024
$’000
2023
$’000
CURRENT
Trade receivables
53,208
39,357
Loss allowance
(2,315)
(1,922)
TRADE RECEIVABLES NET OF LOSS ALLOWANCE
50,893
37,435
Other receivables
5,302
5,309
TOTAL OTHER RECEIVABLES
5,302
5,309
TOTAL CURRENT TRADE AND OTHER RECEIVABLES
56,195
42,744
NON-CURRENT
Other receivables
191
263
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES
191
263
MATERIAL ACCOUNTING POLICIES
(A) TRADE AND OTHER RECEIVABLES
Trade receivables relate to amounts invoiced to customers but not yet received. They are recognised initially at
the transaction price. As trade receivables are held with the objective of collecting contractual cash flows, they
are subsequently measured at amortised cost using the effective interest rate method. Trade receivables are
non-interest bearing and are generally collected within 7 to 30 days from the date of invoice and are therefore
presented as current assets. Non-current other receivables are those where collection is not expected within 12
months from the reporting date and are measured at the present value of future net cash inflows expected to be
received.
(B) IMPAIRMENT OF TRADE RECEIVABLES
Collectability of receivables (including accrued revenue) is reviewed on an ongoing basis. Individual debts that
are known to be uncollectable are written off by management following a review of specific debtors with factors
indicating that the debt may not be repaid. The Group applies the simplified approach to measuring expected
credit losses for trade receivables using a lifetime expected loss allowance approach. To measure the expected
credit losses, receivables are grouped based on shared credit risk characteristics and days past due. The
expected loss rates applied to receivables at 30 June are based on historical loss rates adjusted to reflect current
and forward looking market factors. The loss allowance is recognised in profit or loss within operating expenses.
(C) IMPAIRMENT OF OTHER RECEIVABLES
Collectability of other receivables is reviewed on an ongoing basis with specific allowances made for any
expected credit losses based on a review of all outstanding amounts at reporting period-end. Individual
receivables are written off when management deems them unrecoverable.
3.2 ACCRUED REVENUE
2024
$’000
2023
$’000
Accrued override commission
28,369
29,311
TOTAL ACCRUED REVENUE
28,369
29,311
73
MATERIAL ACCOUNTING POLICIES
Accrued revenue relates to amounts owed to the Group that have not yet been invoiced.
(A) ACCRUED OVERRIDE COMMISSION
Accrued override commission is the estimate of override commission revenue earned during the respective
customer contract period but not yet invoiced at balance date. It is considered a contract asset in accordance with
applicable accounting standards. Refer to note 2.1: Revenue and other income for further details of the recognition
and measurement of override commissions. Accrued override commission is transferred to trade receivables when
the contract period with the airline or leisure partner is completed and the final amount of the override commission
has been calculated and invoiced in accordance with the contract.
The contract periods with airline and leisure partners for override commission varies from one to twelve months. As
a result, the accrued revenue recorded on the Consolidated balance sheet at 30 June is invoiced and settled in the
following financial year. The estimated accrued override commission is subsequently adjusted for any differences
between the Group’s initial estimate and finalisation with the respective contractual partner.
3.3 TRADE AND OTHER PAYABLES
2024
$’000
2023
$’000
Trade payables
124,277
100,324
Accruals
26,493
21,920
Other payables
33,277
31,734
TOTAL TRADE AND OTHER PAYABLES
184,047
153,978
The Group has recognised a defined contribution plan expense of $5.0 million (2023: $3.7 million) in the Consolidated
income statement.
MATERIAL ACCOUNTING POLICIES
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end
of the financial year which are unpaid. Trade and other payables include amounts owing to participating retail
travel agents under the Group’s incentive programs. The Group pays incentives to retail travel agents based on
their eligible availed travel sales at applicable incentive program rates (reported within selling expenses in the
Consolidated income statement).
Trade and other payables are non-interest bearing, unsecured and are normally settled within 7 to 30 day
payment terms from the date of invoice. The Group’s contractual arrangements generally allow the Group to
defer payment of travel related payables until funds have been received from the customer or agent. Trade and
other payables are presented as current liabilities unless payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value and subsequently measured at their amortised cost. Non
trade payables and accruals are non-interest bearing.
74
financial statements
3.5 OTHER LIABILITIES
2024
$’000
2023
$’000
CURRENT
Deferred payments
494
383
TOTAL CURRENT OTHER LIABILITIES
494
383
NON-CURRENT
Deferred payments(i)
800
-
Other liabilities
136
140
TOTAL NON-CURRENT OTHER LIABILITIES
936
140
(i)
As part of the acquisition agreement with Phil Hoffmann Travel (PHT), the Group has recognised a contingent consideration liability. The
contingent consideration is based on PHT achieving a minimum EBITDA in either FY24 or FY25. Upon meeting this performance condition,
a further $0.8 million will be payable, consisting of $0.4 million in cash and $0.4 million in shares (Tranche 2 consideration). The Tranche 2
consideration is expected to be settled within 60 business days after the end of FY25, provided that the EBITDA target is met. The liability
has been recognised in accordance with AASB 3 Business Combinations and is measured at fair value at the acquisition date. Any subsequent
changes in the fair value of the contingent consideration liability will be recognised in profit or loss.
3.4 DEFERRED REVENUE
2024
$’000
2023
$’000
Supplier incentives
908
1,397
Unearned income(i)
6,715
4,977
TOTAL DEFERRED REVENUE
7,623
6,374
(i)
The Group has not provided information on the unsatisfied and partially satisfied performance obligations at reporting date which are part of
a contract that has an original expected duration of one year or less, as permitted by AASB 15 Revenues from contracts with customers.
MATERIAL ACCOUNTING POLICIES
(A) SUPPLIER INCENTIVES
The Group receives incentives from suppliers when entering into long term contracts. Incentives deferred at
30 June 2024 relate to contracts with terms of between 5 to 7 years. Supplier incentives are recognised in the
Consolidated income statement over the life of the contract based on specific performance criteria.
(B) UNEARNED INCOME
Unearned income is considered a contract liability recognised in accordance with applicable accounting
standards. It represents money received from customers prior to finalisation of the travel booking. These funds
represent:
• amounts used to purchase travel products associated with the travel bookings; and
• revenue commission on the booking.
The revenue commission is recognised in the profit or loss in accordance with the revenue recognition policy in
note 2.1: Revenue and other income.
75
3.6 PROVISIONS
2024
$’000
2023
$’000
CURRENT
Employee benefits - annual leave(i)
4,670
3,536
Employee benefits - long service leave(i)
4,306
4,130
Other
4,334
3,638
TOTAL CURRENT PROVISIONS
13,310
11,304
NON-CURRENT
Employee benefits - long service leave
60
67
Lease make good(i)
1,193
1,198
TOTAL NON-CURRENT PROVISIONS
1,253
1,265
MOVEMENT IN PROVISIONS:
Lease
make
good
$’000
Other
$’000
Total
$’000
BALANCE AT 1 JULY 2022
1,130
7,600
8,730
Provision charged to income statement
3
-
3
Additions
80
-
80
Payments made from provision
(15)
(3,962)
(3,977)
BALANCE AT 30 JUNE 2023
1,198
3,638
4,836
Current
-
3,638
3,638
Non-current
1,198
-
1,198
BALANCE AT 30 JUNE 2023
1,198
3,638
4,836
BALANCE AT 1 JULY 2023
1,198
3,638
4,836
Provision released to income statement
(139)
-
(139)
Additions
56
696
752
Additions: through business combinations (i)
174
-
174
Payments made from provision
(96)
-
(96)
BALANCE AT 30 JUNE 2024
1,193
4,334
5,527
Current
-
4,334
4,334
Non-current
1,193
-
1,193
BALANCE AT 30 JUNE 2024
1,193
4,334
5,527
(i)
Represents additions lease make good provisions as a result of the acquisition of Express Travel Group
(i)
The acquisition of Express Travel Group (ETG) resulted in additions to provisions of $1.54 million comprising:
(a) Employee benefits - annual leave of $0.84 million;
(b) Employee benefits - long service leave of $0.53 million; and
(c) Lease make good of $0.17 million.
76
financial statements
4.
INVESTED CAPITAL
4.1 PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
$’000
Equipment
including
motor vehicles
$’000
Leasehold
improvements
$’000
Total
$’000
BALANCE AT 1 JULY 2022
638
5,667
2,301
8,606
Additions
10
1,730
517
2,257
Reclassifications
-
171
-
171
Disposals
-
(656)
-
(656)
Foreign currency differences
21
93
5
119
Depreciation charge
(11)
(2,375)
(548)
(2,934)
BALANCE AT 30 JUNE 2023
658
4,630
2,275
7,563
AT 30 JUNE 2023
Cost
772
29,703
8,976
39,451
Accumulated depreciation
(114)
(25,073)
(6,701)
(31,888)
NET BOOK AMOUNT
658
4,630
2,275
7,563
BALANCE AT 1 JULY 2023
658
4,630
2,275
7,563
Additions
22
1,519
340
1,881
Additions: through business
combinations(i)
-
39
113
152
Disposals
-
(198)
(89)
(287)
Foreign currency differences
(6)
93
1
88
Depreciation charge
(5)
(1,901)
(620)
(2,526)
BALANCE AT 30 JUNE 2024
669
4,182
2,020
6,871
AT 30 JUNE 2024
Cost
792
31,121
8,629
40,542
Accumulated depreciation
(123)
(26,939)
(6,609)
(33,671)
NET BOOK AMOUNT
669
4,182
2,020
6,871
(i) Represents additions to property, plant and equipment as a result of the acquisition of Express Travel Group.
MATERIAL ACCOUNTING POLICIES
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable
estimate can be made as to the amount of the obligation. The amount recognised is the best estimate of the
consideration required to settle the present obligation at the reporting date, taking into account the risks and
uncertainties surrounding the obligation. Provisions are not recognised for future operating losses.
(A) EMPLOYEE BENEFITS
A liability is recognised for benefits accruing to employees in respect of annual leave and long service leave.
Liabilities expected to be settled within 12 months are measured at their nominal values using the remuneration rate
expected to apply at the time of settlement. Liabilities which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash outflows to be made by the Group in respect of services
provided by employees up to the reporting date discounted using a 10 year corporate bond rate.
The Group does not expect all employees to take the full amount of accrued leave or require payment within the
next 12 months.
(B) LEASE MAKE GOOD
A provision is recognised for the estimated cost of expenditure required to complete dismantling and site
restoration obligations required by existing lease contracts. Liabilities which are not expected to be settled
within 12 months are measured as the present value of the estimated future cash outflows.
77
MATERIAL ACCOUNTING POLICIES
(A) CARRYING VALUE
The Group’s property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes any expenditure that is directly attributable to the acquisition of property, plant and
equipment.
(B) DEPRECIATION
Assets are depreciated on a straight-line basis over their estimated useful lives to their residual values. Leasehold
improvements are depreciated over the shorter of the lease term or their useful lives. Land is not depreciated.
The expected useful lives of property, plant and equipment have not changed from the prior year and are as
follows:
• buildings
40 years
• equipment including motor vehicles
2.5 to 10 years
• leasehold improvements
5 to 10 years
(C) PROCEEDS FROM SALE OF ASSETS
The gross proceeds from asset sales are recognised at the date that an unconditional contract of sale is
exchanged with the purchaser or when title passes. The net gain or loss is recognised in profit or loss.
(D) IMPAIRMENT
Property, plant and equipment are tested for impairment in accordance with the policy for impairment of non-
financial assets disclosed in Note 4.4: Impairment of non-financial assets.
78
financial statements
4.2 RIGHT OF USE ASSETS
Property
$’000
Motor Vehicles
$’000
Total
$’000
BALANCE AT 1 JULY 2022
18,354
6
18,360
Additions
2,996
2,405
5,401
Modifications
822
(6)
816
Foreign currency differences
107
-
107
Depreciation charge
(4,296)
(177)
(4,473)
BALANCE AT 30 JUNE 2023
17,983
2,228
20,211
AT 30 JUNE 2023
Cost
37,216
2,405
39,621
Accumulated depreciation and impairment
(19,233)
(177)
(19,410)
NET BOOK AMOUNT
17,983
2,228
20,211
BALANCE AT 1 JULY 2023
17,983
2,228
20,211
Additions
1,001
4,709
5,710
Additions: through business combinations(i)
2,253
-
2,253
Disposals
(1,802)
-
(1,802)
Modifications
718
-
718
Foreign currency differences
(22)
-
(22)
Depreciation charge
(5,099)
(1,320)
(6,419)
BALANCE AT 30 JUNE 2024
15,032
5,617
20,649
AT 30 JUNE 2024
Cost
31,643
7,155
38,798
Accumulated depreciation and impairment
(16,611)
(1,538)
(18,149)
NET BOOK AMOUNT
15,032
5,617
20,649
(i) Represents additions to the right of use assets as a result of the acquisition of Express Travel Group.
MATERIAL ACCOUNTING POLICIES
(A) PROPERTY RIGHT OF USE ASSETS
Property right of use assets relate to the benefits derived from various leased offices under non-cancellable
agreements.
(B) MOTOR VEHICLE RIGHT OF USE ASSET
Motor vehicle right of use assets relate to the benefits derived from vehicles used by the Entertainment Logistix
business under non-cancellable agreements.
(C) ACCOUNTING FOR RIGHT OF USE ASSETS
Right of use assets (lease assets) are initially measured at cost, comprising:
• initial lease liability;
• lease payments at or before the lease commencement date (less any incentives received);
• initial direct costs; and
• estimate of any costs to dismantle, remove or remediate the asset at the end of the lease.
Lease assets are subsequently depreciated on a straight-line basis over the shorter of the lease term or the
useful life of the underlying asset. Lease assets are tested for impairment in accordance with the policy adopted
for non-financial assets in note 4.4: Impairment of non-financial assets. Subsequent to initial measurement,
when the lease liability is remeasured, a corresponding adjustment is made to the value of the lease asset, or the
Consolidated income statement if the lease asset is already reduced to zero.
79
4.3 INTANGIBLE ASSETS
Goodwill
$’000
Retail
distribution
systems
$’000
Agent
network
$’000
Commercial
agreements
$’000
Customer
bases
$’000
Brand
names and
trademarks
$’000
Technology
assets
$’000
Total
$’000
BALANCE AT 1 JULY 2022
87,971
104,400
8,310
12,247
-
864
19,824
233,616
Additions: purchased
-
-
-
-
-
-
479
479
Additions: internal
projects
-
-
-
-
-
-
704
704
Reclassifications
-
-
-
-
-
-
(610)
(610)
Foreign currency
differences
397
-
-
12
-
-
(84)
325
Amortisation charge
-
-
-
(2,575)
-
(100)
(7,941)
(10,616)
BALANCE AT 30 JUNE 2023
88,368
104,400
8,310
9,684
-
764
12,372
223,898
AT 30 JUNE 2023
Cost
463,862
104,400
8,810
25,024
-
9,143
95,919
707,158
Accumulated
amortisation and
impairment
(375,494)
-
(500)
(15,340)
-
(8,379)
(83,547) (483,260)
NET BOOK AMOUNT
88,368
104,400
8,310
9,684
-
764
12,372
223,898
BALANCE AT 1 JULY 2023
88,368
104,400
8,310
9,684
-
764
12,372
223,898
Additions: purchased
-
-
-
-
-
-
262
262
Additions: through
business combinations (i)
38,482
-
21,377
-
3,807
2,110
1,727
67,503
Additions: internal
projects
-
-
-
-
-
-
684
684
Foreign currency
differences
(172)
-
-
-
3
-
-
(169)
Amortisation charge
-
-
(1,979)
(1,383)
(257)
(206)
(6,028)
(9,853)
BALANCE AT 30 JUNE 2024
126,678
104,400
27,708
8,301
3,553
2,668
9,017
282,325
AT 30 JUNE 2024
Cost
502,153
104,400
30,187
24,973
3,807
11,252
95,732
772,504
Accumulated
amortisation and
impairment
(375,475)
- (2,479)
(16,672)
(254)
(8,584)
(86,715) (490,179)
NET BOOK AMOUNT
126,678
104,400
27,708
8,301
3,553
2,668
9,017
282,325
(i)
Represents additions to intangible assets as a result of the acquisition of Express Travel Group.
80
financial statements
4.3.1 NATURE OF INTANGIBLE ASSETS
(A) GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the share of the net identifiable assets
acquired. During the year ended 30 June 2024, goodwill was recognised as part of the acquisition of Express Travel
Group ($38.5 million).
(B) RETAIL DISTRIBUTION SYSTEMS
Retail distributions systems are the integrated system of methods, procedures, techniques and other systems which
facilitate the day-to day running of the retail business. This includes access to products/inventory, brands, marketing,
advertising, promotional techniques, training and operational manuals of the network. Due to the interdependencies
between these components, the Group considers these assets to be complementary and are recognised as single
identifiable assets.
(C) AGENT NETWORKS
Agent networks were separately identified and valued as part of the merger with AOT Group Limited and represents
the agreements with travel agents for the provision of wholesale and inbound domestic travel products such as
packaged tours. During the current year, the useful life of this intangible asset was reassessed to be 15 years (2023:
considered an indefinite life intangible asset). In addition, during the year ended 30 June 2024, agent networks in
Australia were separately identified and valued as part of the acquisition of Express Travel Group ($21.4 million).
(D) COMMERCIAL AGREEMENTS
Commercial agreements represent:
• the value attributable to agreements entered into with travel agents, servicing leisure and corporate travel, that are
part of the Helloworld Travel member network; and
• long-term supplier agreements relating to revenue contracts.
(E) CUSTOMER BASES
Customer bases represented the value attributable to key customer. During the year ended 30 June 2024, customer
relationships relating to First Travel Group were separately identified and valued as part of the acquisition of Express
Travel Group ($3.8 million).
(F) BRAND NAMES AND TRADEMARKS
Brand names and trademarks are intangible assets acquired as part of a past business combination and include
wholesale business brands. During the year ended 30 June 2024, brand names were separately identified and valued
as part of the acquisition of Express Travel Group ($2.1 million).
(G) TECHNOLOGY ASSETS
Technology assets consist of:
• software, website and other technology assets that were acquired through external suppliers or via business
combinations; and
• internally developed and enhanced Group technology platforms. Costs capitalised include external direct costs of
materials and service, and direct payroll and payroll related costs of employees’ time spent on the project.
• during the year ended 30 June 2024, software assets were separately identified and valued as part of the acquisition
of Express Travel Group ($1.7 million).
4.3.2 GOODWILL AND INDEFINITE LIFE INTANGIBLE ASSETS BY CASH
GENERATING UNIT (CGU)
2024
$’000
2023
$’000
Australia retail distribution operations (i)(iv)
167,214
139,010
Australia wholesale and inbound (i)
50,445
44,479
New Zealand (ii)
13,419
9,279
TOTAL, NET OF IMPAIRMENT
231,078
192,768
(i)
Represent the Australian reportable segment of Travel Operations Australia for management purposes.
(ii) Represent the New Zealand reportable segment of Travel Operations New Zealand for management reporting purpose.
(iii) No goodwill has been allocated to the Rest of World CGU, which equates to the Rest of World reportable segment for management reporting
purposes.
(iv) The current and prior years include $104.4 million relating to retail distribution systems.
81
MATERIAL ACCOUNTING POLICIES
(A) GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the share of the net identifiable
assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment
losses.
(B) INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIFE
Retail distribution systems
The Group has determined that these retail distribution systems have an indefinite useful life due to the ongoing
effectiveness of the systems which support the Australian retail network and are allocated to the Australian retail
distribution operations CGU. Retail distribution systems are considered indefinite life intangible assets and are
therefore measured at cost less any accumulated impairment losses.
(C) INTANGIBLE ASSETS WITH FINITE USEFUL LIFE
Agent networks
Agent networks are measured at cost less any accumulated impairment losses and are amortised over their useful
life of 10 to 15 years.
Commercial agreements
Commercial agreements are measured at cost and amortised over their useful life between 5 and 12 years.
Customer bases
Customer bases represent the value attributable to key customer relationships. They are measured at cost and
amortised over their useful life of 15 years.
Brand names and trademarks
Brand names and trademarks are measured at cost and are amortised over their useful life of 7 to 20 years.
Technology assets
Amounts paid for the development of software and website intangible assets are capitalised only when it is
probable the future economic benefits of the project will flow to the Group and the Group controls the software.
The booking system and related website technology acquired from the Flight Systems Group is measured at cost
and is being amortised over 10 years. All other technology assets are measured at cost and are amortised over a
useful life of 2.5 to 7 years.
(D) IMPAIRMENT
Intangible assets are tested for impairment in accordance with the policy for impairment of non-financial assets
disclosed in note 4.4: Impairment of non-financial assets.
82
financial statements
4.4 IMPAIRMENT OF NON-FINANCIAL ASSETS
4.4.1 KEY ASSUMPTIONS
Following are the key assumptions applied in calculating the recoverable amount using the Value in Use method:
KEY ASSUMPTION
COMMENTARY
TOTAL TRANSACTION VALUE
(TTV)
Australia retail distribution
operations CGU
Travel is forecast to gradually increase to 100% of FY19 volumes in 2029,
which is conservative compared to industry forecasts.
Australia wholesale and
inbound CGU
Travel is forecast to gradually increase to 68% of FY19 volumes in 2029,
which is conservative compared to industry forecasts.
New Zealand
The New Zealand CGU comprises inbound and outbound leisure. Travel is
forecast to gradually increase to 100% of FY19 volumes in 2025, which is in
line with industry forecasts.
REVENUE MARGINS/EBITDA
Revenue margins are forecast to return to historical levels for each revenue
stream, allowing for changes in TTV mix within the respective CGU. Variable
costs including employee benefits expenditure have been forecast as a
percentage of TTV or revenue.
LONG-TERM GROWTH
The terminal value calculations have an equivalent revenue and operating
expense growth assumption of 2% (2023: 2%).
DISCOUNT RATES
Discount rates applied in the testing of recoverable amounts reflect the
post-tax weighted average cost of capital. A 13.0% discount rate (2023:
14.0%) has been applied to the Australian CGUs and a 13.0% discount rate
(2023: 14.0%) has been applied to the New Zealand CGU.
4.4.2 SENSITIVITY ANALYSIS
The recoverable amount is sensitive to changes in the key assumptions described above. The impact of reasonably
possible changes in key assumptions is shown in the table below and has been calculated in isolation from other changes.
An impairment may result in the event that multiple changes to key assumptions occur simultaneously.
RESULTANT IMPAIRMENT CHANGE
TTV reduction to
key assumption(i)(ii)
EBITDA
reduction to key
assumption
Long-term
growth decrease
Discount rate
increase
GOODWILL
5.0%
5.0%
1.0%
1.0%
Australia retail distribution operations
No impairment
No impairment
No impairment
No impairment
Australia wholesale and inbound
No impairment
No impairment
No impairment
No impairment
New Zealand
No impairment
No impairment
No impairment
No impairment
(i)
TTV does not represent revenue in accordance with Australian Accounting Standards and is not subject to audit or review. TTV represents
the price at which travel products and services have been sold across the Group, as agents for various airlines and other service providers,
plus revenue from other sources. The Group’s revenue is, therefore, derived from TTV. TTV does not represent the Group cash inflows as some
transactions are settled directly between the customer and the supplier.
(ii) A reduction in forecast TTV has a corresponding impact on forecast revenues and variable operating expenditures, working capital and tax.
83
MATERIAL ACCOUNTING POLICIES
An impairment loss is incurred when the carrying amount of an asset or a CGU exceeds its estimated recoverable amount.
(A) IMPAIRMENT OF NON-FINANCIAL ASSETS
The carrying amounts of the Group’s non-current assets are reviewed for impairment as follows:
• lease assets, property, plant and equipment, and finite life intangibles: when there is an indication that the
asset may be impaired (assessed at least each reporting date) or when there is an indication that a previously
recognised impairment may need to be reversed; and
• goodwill and indefinite life intangibles: at least annually and when there is an indication that the asset may be
impaired.
The Group’s impairment testing is performed at an individual CGU level. The Group assessed the carrying
amounts of CGUs and no impairments were recognised.
(B) CALCULATION OF RECOVERABLE AMOUNT
The recoverable amount of an asset is the greater of its value in use and its fair value less costs of disposal. For an
asset that does not generate largely independent cash inflows, recoverable amount is assessed at the CGU level,
which is the smallest group of assets generating cash inflows independent of other CGUs that benefit from the
use of the respective asset.
Recoverable amount has been determined using the Value in Use method. Cash flow forecast have been
approved by management and are forecast for a period of 5 years.
Goodwill is allocated to those CGUs or groups of CGUs that are expected to benefit from the business
combination in which the goodwill arose, identified according to operating segments and grouped at the lowest
levels for which goodwill is monitored for internal management purposes.
Impairment losses are recognised in the Consolidated income statement. Impairment losses recognised in
respect of a CGU are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then
to reduce the carrying amount of other assets in the CGU on a pro-rata basis.
84
financial statements
5
CAPITAL STRUCTURE AND FINANCING ACTIVITIES
5.1
CASH AND CASH EQUIVALENTS AND CASH DEPOSITS
2024
$’000
2023
$’000
Cash at bank and on hand(i)
113,221
107,730
Restricted cash at bank(ii)
48,531
39,158
CASH AND CASH EQUIVALENTS
161,752
146,888
Cash deposits(iii)
125
12,000
Restricted cash deposits(ii)
-
2,000
CASH DEPOSITS
125
14,000
TOTAL(iv)
161,877
160,888
(i)
Includes client cash which is not International Air Transport Association (IATA) restricted.
(ii) Includes cash held within legal entities of the Group that have IATA requirements as part of providing ticketing travel arrangements and, in the
prior year for an ongoing legal matter.
(iii) Represents term deposits placed with commercial banks with a term of greater than 3 months.
(iv) The total cash and deposits excluding restricted cash is $113.2 million (2023: $119.7 million).
MATERIAL ACCOUNTING POLICIES
(A) CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash balances, at call deposits and term deposits with an original maturity
of three months or less. Term deposits are readily convertible to known amounts of cash and are subject to an
insignificant risk of changes in value. Interest income is earned on cash and term deposits and is recognised on an
accrual basis in the profit or loss.
5.1.1
CASH FLOW RECONCILIATIONS
RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET OPERATING CASH FLOWS:
2024
$’000
2023
$’000
PROFIT AFTER INCOME TAX EXPENSE FOR THE YEAR
30,729
17,363
Adjustments for:
Depreciation and amortisation expense
18,798
18,023
Share based payment expense
326
-
Profit on disposal of property, plant and equipment
(40)
(183)
Loss allowance on trade receivables and accrued override commission
393
(3,971)
Share of profit of equity accounted investments
(4,857)
(1,981)
Dividend income
(841)
(556)
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
2,350
(4,572)
(Increase)/decrease in prepayments
637
(990)
(Increase)/decrease in accrued revenue
6,230
(14,350)
Decrease in inventories
91
249
Increase in trade and other payables
2,214
21,507
Decrease in deferred revenue
(290)
(1,834)
Increase/(decrease) in other liabilities
107
(146)
Increase/(decrease) in provisions
451
(3,533)
Movements in tax balances
7,180
1,852
NET OPERATING CASH FLOWS
63,478
26,878
85
5.2 FINANCING ARRANGEMENTS
2024
$’000
2023
$’000
CONTINGENT FACILITIES: BANK GUARANTEES
Westpac Facility B
227
1,661
Westpac Facility C
78
533
Westpac stand alone facilities
2,361
2,159
2,666
4,353
LINE OF CREDIT
Line of credit
457
-
457
-
TOTAL CONTINGENT FACILITIES
3,123
4,353
The above represents contingent components (bank guarantees) of Westpac facilities B and C. The financing
arrangements are secured over the assets of the entities in the Deed of Cross Guarantee (note 8.4: Deed of cross
guarantee) and certain New Zealand entities within the Group (the “obligor group” as defined under the Westpac
facility agreement).
86
financial statements
5.3 LEASE LIABILITIES
2024
$’000
2023
$’000
Current lease liabilities
6,570
5,266
Non-current lease liabilities
15,627
16,878
TOTAL LEASE LIABILITIES
22,197
22,144
MOVEMENTS IN TOTAL LEASE LIABILITIES:
Property
$’000
Motor vehicles
$’000
Total
$’000
BALANCE AT 1 JULY 2022
21,074
2
21,076
Additions(ii)
2,916
2,372
5,288
Interest expense
652
51
703
Lease payments(i)
(5,762)
(198)
(5,960)
Modifications to lease terms
900
-
900
Foreign currency differences
137
-
137
BALANCE AT 30 JUNE 2023
19,917
2,227
22,144
Current
4,700
566
5,266
Non-current
15,217
1,661
16,878
TOTAL LEASE LIABILITIES
19,917
2,227
22,144
BALANCE AT 1 JULY 2023
19,917
2,227
22,144
Additions (ii)
954
4,708
5,662
Additions: through business combinations (iii)
2,079
-
2,079
Disposals
(1,856)
-
(1,856)
Interest expense
857
360
1,217
Lease payments (i)
(5,820)
(1,919)
(7,739)
Modifications
714
-
714
Foreign currency differences
(24)
-
(24)
BALANCE AT 30 JUNE 2024
16,821
5,376
22,197
Current
4,842
1,728
6,570
Non-current
11,979
3,648
15,627
TOTAL LEASE LIABILITIES
16,821
5,376
22,197
(i)
Comprises principal elements of lease liabilities of $6.5 million (2023: $5.2 million) included in financing cash flows and interest expense of
$1.2 million (2023: $0.7 million) included in operating cash flows.
(ii) The Group entered into additional motor vehicle leases resulting in additions of $4.7 million, and property leases at Perth resulting in additions of
$0.9 million. In the prior year, the Group entered into motor vehicle leases and a property lease at Sydney resulting in additions of $5.2 million.
(iii) Relates to the acquisition of Express Travel Group business (ETG) ($2.1 million).
5.3.1 NATURE OF LEASING ACTIVITIES
The Group has operating leases relating to commercial office premises, retail properties and motor vehicles. The
Group’s leases are typically for fixed periods between 3 to 10 years and may include extension options. Lease terms
are negotiated on an individual lease basis and contain a wide range of different terms and conditions. Lease liabilities
payment obligations relate to various leased offices and motor vehicles under non-cancellable agreements. None
of the Group’s lease agreements impose any covenants, however leased assets may not be used as security for
borrowing purposes.
5.3.2 SHORT TERM LEASES AND LEASES OF LOW VALUE ASSETS
In addition to the above leases, the Group recognised the following in the income statement:
• low value lease expense of $0.02 million (2023: $0.04 million); and
• short term lease expense of $0.35 million (2023: $0.2 million) for leases entered into by the freight business.
87
MATERIAL ACCOUNTING POLICIES
(A) MEASUREMENT AND RECOGNITION
The Group assesses whether a contract is, or contains, a lease at inception of the contract. A lease conveys the
right to direct the use and obtain substantially all of the economic benefits from an identified asset for a period of
time in exchange for consideration. A lease liability and corresponding right of use lease asset are recognised at
commencement of the lease.
(B) LEASE LIABILITIES
Lease liabilities are measured at the present value of lease payments, discounted using the interest rate implicit
in the lease or, if that rate cannot be determined, at the Group’s incremental borrowing rate specific to the lease
term. Lease payments include:
• fixed payments less any lease incentives receivable;
• variable lease payments that are based on an index or a rate;
• amounts expected to be payable by the Group under residual value guarantees; and
• exercise price of a purchase option that the Group is reasonably certain to exercise.
Subsequent to initial measurement, the liability is reduced for lease payments made and increased for interest
incurred. The liability is remeasured to reflect any reassessment or modification, or if there are changes relating
to in-substance fixed payments. In addition, the liability is adjusted when an index or rate change takes effect
resulting in an increase in variable lease payments.
(C) EXTENSION AND TERMINATION OPTIONS
Extension and termination options are included in a number of the Group’s property leases. These extension
options are at the discretion of Helloworld and provide management with the flexibility to manage the leased-
asset portfolio in line with the Group’s needs. Extension options (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be extended (or not terminated).
(D) SHORT TERM LEASES AND LEASES OF LOW VALUE ASSETS
Short term leases are those with a lease term of 12 months or less. The costs associated with these leases are
recognised as an expense in the profit or loss as incurred. Low value assets comprise small items of office and
information technology related equipment.
5.4 ISSUED CAPITAL
2024
shares
2023
shares
2024
$’000
2023
$’000
SHARES ON ISSUE
Issued capital – fully paid
160,979,622
155,027,845
487,631
471,231
TOTAL ISSUED CAPITAL
160,979,622
155,027,845
487,631
471,231
Holders of ordinary shares in Helloworld Travel Limited are entitled to receive dividends as declared from time to
time and are entitled to one vote per share at Helloworld shareholders’ meetings. In the event of the winding up
of Helloworld Travel Limited, ordinary shareholders rank after creditors and are fully entitled to any proceeds on
liquidation. Ordinary shares have no par value and Helloworld Travel Limited does not have a limited amount of
authorised capital.
88
financial statements
(i)
Issued capital and the number of shares on issue increased during the year due to:
(a)
5,471,996 shares issued at $2.741 per share on completion of the Express Travel Group acquisition, and
(b)
479,781 shares issued at $2.918 per share on completion of the Phil Hoffmann Travel acquisition.
(ii) Vested and exercised franchise loyalty plan shares in prior years
On 24 November 2017, 30,000 shares were granted under the franchise loyalty share plan. These shares vested on 31 July 2019 and they were
exercised during FY20 at a fair value of $2.80 per share. In accordance with the Group’s policy, amounts relating to these vested and exercised
shares is transferred from share-based payment reserve to share capital.
(iii) Vested and exercised Omnibus share plan in prior years
During the prior years, 1,071,932 shares (146,932 shares in FY20, 905,000 shares in FY21 and 20,000 shares in FY22) met their vesting
conditions and were exercised for a total fair value of $2.9 million. In accordance with the Group’s policy, amounts relating to these vested and
exercised shares is transferred from share-based payment reserve to share capital.
MOVEMENT IN SHARES ON ISSUE:
Number of
shares
$’000
BALANCE AT 1 JULY 2022
155,027,845
468,199
Vested and exercised franchise loyalty plan shares in prior years (ii)
-
84
Vested and exercised Omnibus share plan in prior years (iii)
-
2,948
BALANCE AT 30 JUNE 2023
155,027,845
471,231
BALANCE AT 1 JULY 2023
155,027,845
471,231
Shares issued on completion of acquisition of Express Travel Group (i)
5,471,996
15,000
Shares issued on completion of acquisition of Phil Hoffmann Travel Group(i)
479,781
1,400
BALANCE AT 30 JUNE 2024
160,979,622
487,631
89
5.5.1 NATURE OF RESERVES
(A)
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign operations are taken to the foreign currency translation
reserve, as described in note 1.2: Accounting policies applicable to all financial information.
(B)
INVESTMENT REVALUATION RESERVE
The investment revaluation reserve comprises the fair value adjustments on financial assets. Refer to note 6.2: Other
investments for further detail.
(C)
SHARE BASED PAYMENTS RESERVE
The share based payments reserve is used to recognise the fair value of:
• shares issued to eligible employees with performance related conditions; and
• franchise loyalty shares issued to eligible franchise network members with related conditions.
Once the vesting conditions of the respective share schemes are met and the shares are exercised, the accumulated
amount of the share based payment reserve relating to the vested shares is transferred to share capital.
(D)
REDEMPTION RESERVE
In FY18, a redemption reserve was recognised upon the acquisition the Group’s 60% shareholding in Keygate Holdings
Pty Ltd. The redemption reserve related to the non-controlling interest’s put option to sell their remaining 40%
interest to the Group. The put option was not exercised and expired on 28 September 2022 and hence the balance of
redemption reserve was transferred to retained earnings.
5.5 RESERVES
2024
$’000
2023
$’000
Foreign currency translation reserve
(1,130)
(562)
Investment revaluation reserve
(10,213)
(7,551)
Share based payments reserve
1,342
1,016
TOTAL RESERVES
(10,001)
(7,097)
MOVEMENTS IN RESERVES:
Foreign
currency
translation
reserve
$’000
Investment
revaluation
reserve
$’000
Share based
payments
reserve
$’000
Redemption
reserve
$’000
Total
$’000
BALANCE AT 1 JULY 2022
(1,440)
(13,075)
4,090
(7,200)
(17,625)
Foreign currency translation
878
-
-
-
878
Transfer to accumulated losses
-
4,323
-
7,200
11,523
Revaluation of investment in CTM (net of tax)
-
1,201
-
-
1,201
Franchise loyalty scheme shares lapsed in
prior years
-
-
(42)
-
(42)
Franchise loyalty scheme and Omnibus share
plan shares exercised in prior years
-
-
(3,032)
-
(3,032)
BALANCE AT 30 JUNE 2023
(562)
(7,551)
1,016
-
(7,097)
BALANCE AT 1 JULY 2023
(562)
(7,551)
1,016
-
(7,097)
Foreign currency translation
(568)
-
-
-
(568)
Share based payments expense
-
-
326
-
326
Transfer to accumulated losses
-
1,414
-
-
1,414
Revaluation of investment in CTM (net of tax)
-
(4,076)
-
-
(4,076)
BALANCE AT 30 JUNE 2024
(1,130)
(10,213)
1,342
-
(10,001)
90
financial statements
5.6. DIVIDENDS
5.6.1 DIVIDENDS PAID DURING THE YEAR
2024
$’000
2023
$’000
ORDINARY SHARES
FY22 final dividend of 10.0 cents per share, paid on 23 September 2022
-
(15,405)
FY23 interim dividend of 2.0 cents per share, paid on 23 March 2023
-
(3,078)
FY23 final dividend of 6.0 cents per share, paid on 22 September 2023
(9,491)
-
FY24 interim dividend of 5.0 cents per share, paid on 22 March 2024
(7,999)
-
TOTAL DIVIDENDS PAID
(17,490)
(18,483)
(i)
On 27 August 2024, a full franked final dividend of 6.0 cents per share (2023: 6.0 cents per share) was declared. The dividend will be paid on 19
September 2024 with a record date of 6 September 2024. At the date of this Financial Report, the number of shares on issue is 160,979,622.
Based on shares on issue as at the date of this Financial Report, the final dividend to be distributed would equate to $9.7 million (2023: $9.5
million), adjusted for the amount offset against the notional employee plan loan. The dividend will be paid out of 2024 financial year profits but
is not recognised as a liability at 30 June 2024.
(ii) At 30 June 2024, 1,320,000 (2023: 1,320,000) vested LTIP shares issued to employees with an employee loan remained unexercised. In
accordance with the LTIP loan associated with the FY17 LTIP grant, 24.29% of dividends associated with these shares are paid to the
employee in cash with the remaining 75.71% applied to the notional outstanding employee loan. Dividends of $35,263 (2023: $38,469) were
paid in cash for the unexercised LTIP shares and dividends of $109,937 (2023: $119,931) were offset against the notional employee plan loan
during the year.
5.6.2 FRANKING CREDITS
2024
$’000
2023
$’000
FRANKING CREDITS AVAILABLE AT THE BEGINNING OF THE REPORTING PERIOD
5,293
12,573
Franking credits transferred in from the acquisition of Express Travel Group
3,360
-
Franking credits adjusted to reflect income tax payments
2,435
-
Franking credits attached to the dividends paid during the year
(7,542)
(7,973)
Franking credits attached to the dividends received during the year
975
693
TOTAL AMOUNT OF FRANKING CREDITS AVAILABLE FOR SUBSEQUENT
FINANCIAL YEARS
4,521
5,293
6
GROUP STRUCTURE
6.1
EQUITY ACCOUNTED INVESTMENTS
2024
$’000
2023
$’000
Interest in Mobile Travel Holdings Pty Limited (MTA)
17,328
15,897
Interest in Australiareiser Group
3,130
2,896
Interest in PHT Group Holdings Pty Ltd (Phil Hoffmann Travel)
7,665
-
TOTAL EQUITY ACCOUNTED INVESTMENTS
28,123
18,793
91
6.1.1
INVESTMENT IN EQUITY ACCOUNTED INVESTMENTS
The movement for the year in the Group’s equity accounted investments is as follows:
Phil Hoffmann Travel
Australiareiser Group
MTA
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
OPENING BALANCE AT 1 JULY
-
-
2,896
-
15,897
15,292
Contingent consideration (i)
800
-
-
-
-
-
Investment in jointly controlled entities
5,793
-
-
3,020
-
-
Share of profit/(loss) after income tax
expense
1,192
-
234
(124)
3,431
2,105
Dividend received during the year
(120)
-
-
-
(2,000)
(1,500)
CLOSING BALANCE AT 30 JUNE
7,665
-
3,130
2,896
17,328
15,897
(i)
Contingent consideration up to a maximum of $0.8 million (in cash and Helloworld shares) will be paid subject to Phil Hoffmann Travel achieving
specified EBITDA metrics in FY24 or FY25.
The closing carrying amount of investments in Australiareiser Group, MTA and Phil Hoffmann Travel are reconciled to
the Group’s share of net assets as follows:
Phil Hoffmann Travel
Australiareiser Group
MTA
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Share in net assets
6,900
-
523
289
3,432
2,001
Goodwill
765
-
2,607
2,607
13,896
13,896
CLOSING CARRYING AMOUNT
AT 30 JUNE 2024
7,665
-
3,130
2,896
17,328
15,897
(A) INFORMATION ON ASSOCIATE
Mobile Travel Holdings Pty Limited (MTA)
MTA offers home-based travel consulting services provided by mobile travel consultants throughout Australia. The
Group currently holds a 50% ownership interest (2023: 50%) in MTA. MTA was incorporated in Australia.
The Group acquired a 50% ownership interest in MTA in FY17 for a total consideration of $14.2 million. As part of the
sale and purchase agreement, the Group had a call option to acquire the remaining 50% ownership interest which was
able to be exercised up to 31 December 2021. In 2021, the deadline was extended to 30 July 2025 due to the impact
of COVID-19. The co-owners of MTA have a put option to sell their remaining 50% ownership interest to the Group 30
days after the expiry of the call option period. The call option and the put option have been priced at fair value and
accordingly the derivative fair value is nil.
(B) INFORMATION ON JOINTLY CONTROLLED ENTITIES
Australiareiser Group
On 21 March 2023, the Group acquired a 34% ownership interest in the Australiareiser Group of companies for $3
million. The Australiareiser Group comprises Australienresor AB and Australiareiser AS. Australiareiser Group is the
largest provider of travel packages to Scandinavians travelling to Australia, New Zealand and the South Pacific. The
group’s other brands include Fijireiser, Private Travel Lab, Gruppe Rundreiser and Workations offer tailor-made luxury
and adventure tours for Scandinavian groups and individuals through its offices in Oslo, Copenhagen and Stockholm.
The shareholders’ agreement includes a long term put and call option which gives Helloworld the obligation and
opportunity (respectively) to buy the remaining 56% of shares between 2028 and 2031. The call option is not required to
be recognised. The put option has been priced at fair value and accordingly no put option derivative has been recognised.
The call option and the put option have been priced at fair value and accordingly the derivative fair value is nil.
The Australiareiser Group has a 31 December financial year end which is different to the Group’s reporting period of 30
June. Financial information has been obtained as at 30 June in order to report on an annual basis consistent with the
Group’s reporting date.
PHT Group Holdings Pty Ltd (Phil Hoffmann Travel)
On 2 May 2023, Helloworld entered into an agreement for the purchase of 40% of Phil Hoffmann Travel (PHT), a travel
agency group based in South Australia. PHT operates leisure and business travel in addition to a cruise and group
travel business. Helloworld acquired a 40% share of the business from Phil Hoffmann (Mr Hoffmann) for an initial
payment of $4.4 million, comprising $3 million in cash and $1.4 million in Helloworld shares (Tranche 1 consideration).
There was also a net working capital / net debt adjustment of $1.39m paid to Mr Hoffmann. The acquisition was
completed on 25 August 2023.
A further maximum of $0.8 million (in cash and Helloworld shares) will be paid to Mr Hoffmann subject to Phil
Hoffmann Travel achieving specified EBITDA metrics in FY24 or FY25.
92
financial statements
MATERIAL ACCOUNTING POLICIES
(A)
INVESTMENTS IN ASSOCIATES
Associates are those entities in which the Group has significant influence but not control or joint control over the
financial and operating policies.
(B)
INVESTMENTS IN JOINTLY CONTROLLED ENTITIES
Jointly controlled entities are those entities where there is a contractually agreed sharing of control of an arrangement
and decisions about the relevant activities require the unanimous consent of the parties sharing control.
6.1.2 SUMMARISED FINANCIAL INFORMATION
The tables below provide summarised financial information for the equity accounted investments in Australiareiser and
MTA, which are considered significant equity accounted investments for the Group. The information disclosed reflects
the amounts presented in the financial statements of Australiareiser and MTA and not the Group’s share of the amounts.
SUMMARISED STATEMENT OF FINANCIAL POSITION
Phil Hoffmann
Travel
Australiareiser
Group
MTA
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Total current assets
15,748
-
2,981
2,506
36,129
29,581
Total non-current assets
28,137
-
791
772
980
820
TOTAL ASSETS
43,885
-
3,772
3,278
37,109
30,401
Total current liabilities
12,542
-
1,528
1,112
29,885
25,752
Total non-current liabilities
14,092
-
705
1,316
360
647
TOTAL LIABILITIES
26,634
-
2,233
2,428
30,245
26,399
NET ASSETS
17,251
-
1,539
850
6,864
4,002
SUMMARISED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Phil Hoffmann
Travel
Australiareiser
Group
MTA
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
Revenue
21,257
-
16,571
16,240
18,866
11,583
Operating expenses
(15,703)
-
(15,720)
(16,633)
(8,575)
(5,491)
Depreciation and amortisation
(1,076)
-
(88)
(131)
(321)
(78)
PROFIT/(LOSS) BEFORE INCOME TAX
4,478
-
763
(524)
9,970
6,014
Income tax (expense)/benefit
(1,402)
-
(74)
162
(3,108)
(1,804)
PROFIT/(LOSS) AFTER INCOME TAX
3,076
-
689
(362)
6,862
4,210
Profit attributable to members of the
parent entity
2,981
-
689
(362)
6,862
4,210
Profit attributable to non-controlling
interests
95
-
-
-
-
-
PROFIT/(LOSS) AFTER INCOME TAX
3,076
-
689
(362)
6,862
4,210
Total comprehensive income attributable
to members of the parent entity
2,981
-
689
(362)
6,862
4,210
Total comprehensive income attributable
to non-controlling interests
95
-
-
-
-
-
TOTAL COMPREHENSIVE INCOME/(LOSS)
3,076
-
689
(362)
6,862
4,210
The Share Purchase Agreement includes a call option to acquire Mr Hoffmann’s remaining 10% shareholding between
25 August 2025 and 25 August 2027 based on an eight times EBITDA multiple. The remaining PHT business owner,
Mr Peter Williams, has retained his 50% shareholding in PHT. The Shareholders Agreement, includes a put option and a
call option to acquire Mr William’s remaining 50% shareholding between 1 May 2028 to 30 April 2033 based on an eight
times EBITDA multiple. The call option and the put option have been priced at fair value and accordingly the derivative
fair value is nil.
93
(C)
EQUITY ACCOUNTING METHOD
Equity accounting requires investments in associates and jointly controlled entities to be initially recognised at
cost, including transaction costs. The investments are subsequently accounted for using the equity method
by including the Group’s share of profit or loss and other comprehensive income in the carrying amount of the
investment until the date on which significant influence ceases. Dividends received reduce the carrying amount
of the investment in associates and jointly controlled entities.
When the Group’s share of losses in associates and jointly controlled entities equal or exceed its interest in the
entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless
it has incurred obligations or made payments on behalf of the associate or jointly controlled entity.
Unrealised gains and losses on transactions between the Group and its associates and jointly controlled entities
are eliminated to the extent of the Group’s interest in these entities.
6.2 OTHER INVESTMENTS
2024
$’000
2023
$’000
Equity securities – at fair value through OCI (FVOCI)
20,322
34,329
TOTAL OTHER INVESTMENTS
20,322
34,329
6.2.1 EQUITY SECURITIES DESIGNATED AS FVOCI
Fair value at
30 June
2024
$'000
Fair value at
30 June
2023
$'000
Investment in Corporate Travel Management Limited (i)
18,440
32,930
Investment in Hunter Travel Group Pty Ltd (ii)
473
473
Investment in Wander Beyond Travel Pty Ltd (ii)
813
813
Investment in Brooker Travel NZ (ii)
45
45
Investment in Tin Alley (iii)
551
68
TOTAL EQUITY SECURITIES DESIGNATED AS FVOCI
20,322
34,329
(i)
The Group received 3,571,429 CTM shares as a component of the consideration received for the sale of the corporate travel management
(refer note 1.5: Discontinued operations). At the date the sale was completed (31 March 2022), these shares were fair valued at $84.8 million.
The Group sold 450,000 shares during the year ended 30 June 2024 (2023: 1,730,770 shares) at a fair value of $8.7 million (2023: $36.3
million) realising a loss of $1.4 million (2023: loss of $4.3 million) which was recognised through OCI. At the disposal date, this balance was
reclassified to accumulated losses. The remaining shares have been fair valued at 30 June 2024 with the revaluation decrement of $5.8 million
(2023: increment of $3.1 million) recognised in OCI.
(ii) The investments held in Hunter Travel Group Pty Ltd, Wander Beyond Travel Pty Ltd (formerly known as Cooney Investments Pty Ltd) and
Brooker Travel NZ are carried at cost as an estimate of fair value due to insufficient information being available to measure fair value.
(iii) During the year, the Group paid the second capital and third call of $0.1 million and $0.4 million (2023: a capital call of $68,000) from its $5
million commitment to the investment in Tin Alley Venture Capital fund.
MATERIAL ACCOUNTING POLICIES
The Group holds a number of equity investments which it neither controls, jointly controls or significantly
influences. Accordingly, these investments are classified as financial assets. The Group has made an irrevocable
election to classify these financial assets at FVOCI as the investment is neither held for trading nor contingent
consideration recognised by the Group in a business consideration.
These investments are initially recorded at fair value plus directly attributable transaction costs. They are
revalued each reporting date, with all changes to the fair value recognised in OCI. Upon disposal the amount
recognised in OCI is not recycled through the Consolidated income statement but will be transferred directly to
retained earnings. Dividends are recognised in the profit or loss.
94
financial statements
6.3 SUBSIDIARIES
(a) The financial statements incorporate the assets, liabilities and results of the following principal subsidiaries in
accordance with the accounting policy described in note 1.1: Basis of preparation. Refer to the Consolidated entity
disclosure statement for a full list of the controlled entities within the Helloworld Group.
(b) Effective 1 June 2023, the Group acquired an additional 15% interest in Entertainment Logistix Pty Ltd from the non-
controlling interest for a consideration of $3.2 million increasing its current ownership from 70% to 85%. The acquired
non-controlling interest had a value of $0.5 million giving rise to an adjustment of $2.7 million to accumulated losses
as a transaction with owners as owners.
6.4 BUSINESS ACQUISITIONS
Acquisition of Express Travel Group
On 11 August 2023, the Group acquired 100% of the voting shares of Express Travel Group (ETG), that specialises in the
selling of the international and domestic travel products and services, and the operation of retail distribution networks
of travel agents. The acquisition of ETG significantly enhances the Group’s travel business through additional travel
operations including an air ticket consolidation business, retail travel networks and cruise and package wholesaling
businesses in Australia and New Zealand. The acquisition has been accounted for using the acquisition method.
The fair values of the identifiable assets and liabilities of ETG as at the date of acquisition were:
$’000
ASSETS
Cash and cash equivalents
11,357
Cash deposits
127
Trade and other receivables
16,122
Prepayments
1,053
Accrued revenue
5,288
Property, plant and equipment
152
Right of use assets
2,253
Deferred tax asset
200
Identifiable intangibles
29,021
TOTAL ASSETS
65,573
LIABILITIES
Trade and other payables
27,749
Provisions
1,542
Deferred revenue
1,539
Lease liabilities
2,079
Income tax payable
2,410
Deferred tax liability
11
TOTAL LIABILITIES
35,330
TOTAL IDENTIFIABLE NET ASSETS AT FAIR VALUE
30,243
Goodwill arising on acquisition
38,482
TOTAL CONSIDERATION
68,725
Satisfied by:
Cash consideration
53,725
Equity instruments
15,000
TOTAL CONSIDERATION
68,725
95
The entities acquired as part of the ETG acquisition were:
• Creative Cruising NZ Limited
• Creative Cruising Pty Ltd
• Cruise Spirit Limited
• Express IP Holdings Pty Ltd
• Express Tickets Limited
• Express Travel Group Pty Ltd
• First Fares Limited
• First Travel Collective Limited
• First Travel Group Limited
• First Travel Limited
• Independent Travel Advisors Limited
• Italktravel Pty Ltd
• Lifestyle Holidays Limited
• Orient Express Travel Group Pty Ltd
• Siteconnect Limited
• You Travel Limited
A reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period is presented below:
$’000
NET BOOK VALUE:
At 1 JULY 2023
88,368
Acquisition of Express Travel Group
38,482
Foreign currency movements
(172)
AT 30 JUNE 2024
126,678
The acquisition date fair value of the trade receivables amounts to $16,122,386. The gross amount of trade receivables is
$16,122,386 and it is expected that the full contractual amounts will be collected.
The Group measured the acquired lease liabilities using the present value of the remaining lease payments at the date of
acquisition. The right of use assets were measured at an amount equal to the lease liabilities.
The goodwill recognised is primarily attributed to the expected synergies and other benefits from combining the assets
and activities of ETG with those of the Group. The goodwill is not deductible for income tax purposes.
Transaction costs of $960,326 have been expensed and are included in operating expenses in the Consolidated income
statement and are part of operating cash flows in the Consolidated statement of cash flows.
From the date of acquisition, being 11 August 2023, to 30 June 2024, ETG has contributed $37.9 million to the revenue of
the Group and $14.0 million to the net profit before tax of the Group. If the acquisition of ETG had occurred on 1 July 2023,
the revenue and net profit before tax of the combined entity for the year ended 30 June 2024 would have been
$232.6 million and $42.5 million respectively.
Exercise of Gilpin Travel put option
During the year ended 30 June 2019, the Group entered into a commercial agreement with Gilpin Travel for the
distribution of travel products. As part of the agreement, the Group granted the shareholders of Gilpin Travel a put
option to sell 100% of the business and the shareholders of Gilpin Travel granted the Group a call option to buy 100%
of the business (with both options excluding that part of the Gilpin Travel business which operates under the CWT
licence). The contracted purchase price is a set multiple of the EBITDA for the financial year immediately preceding
the exercise of the option. The multiple has been assessed to be a market based multiple. The put option and the call
option notice periods were initially contracted to be 1 January 2021 to 31 December 2023 and 1 January 2023 to 31
December 2023 respectively. However, in August 2022, the put option and the call option notice periods were both
amended to be 1 January 2021 to 31 December 2025. The put option, a derivative, is measured at fair value. On 17 July
2023, the put option was exercised by the shareholders of Gilpin Travel. Helloworld and the Gilpin Travel shareholders
are engaged in arbitration relating to the transaction. No agreements have been executed and the transaction has
not yet settled. The Group has assessed that it does not control Gilpin Travel at the date of this Financial Report. The
Group continues to recognise the put option at its fair value.
96
financial statements
97
7
UNRECOGNISED ITEMS
7.1
COMMITMENTS
At 30 June 2024, the Group had a commitment of $4.4 million (30 June 2023: $4.9 million) in relation to the investment
in the Tin Alley venture capital fund.
At 30 June 2024, the Group had no capital commitments. At 30 June 2023, the Group had capital commitments of
$4.4 million relating to the purchase of vehicles which were acquired through finance lease facilities.
7.2 CONTINGENT LIABILITIES
GUARANTEES
The Group has entered into the following guarantees and warranties, however the probability of making a payment
under these guarantees is considered remote:
• bank guarantees against lease obligations and letters of credit at 30 June 2024 were $3.1 million (30 June 2023: $4.4
million);
• Helloworld Travel Limited has entered into a Deed of Cross Guarantee with certain Australian wholly owned
controlled entities as outlined in note 6.3: Subsidiaries; and
• the Group provided normal commercial warranties to CTM as part of the divestment of the Corporate business.
COMMERCIAL AGREEMENT ENTERED INTO WITH BCD TRAVEL
During the year ended 30 June 2019, the Group entered into a commercial agreement with BCD Travel, which included
put and call options to purchase 100% of the ownership of the business. The contracted purchase price is a set multiple
of the EBITDA for the financial year immediately preceding the exercise of the put option. The put option notice period
is 1 January 2023 to 31 December 2025 and the call option notice period is 1 January 2024 to 31 December 2025. The
put option was priced at fair value and accordingly no put option derivative has been recognised.
No provision has been made in the financial statements in respect of the above contingencies as they are considered
either not probable or the obligation cannot be measured with sufficient reliability.
7.3 SUBSEQUENT EVENTS
DIVIDEND
On 27 August 2024, a full franked final dividend of 6.0 cents per share (2023: 6.0 cents per share) was declared.
The dividend will be paid on 19 September 2024 with a record date of 6 September 2024. At the date of this Financial
Report, the number of shares on issue is 160,979,622. Based on shares on issue as at the date of this Financial
Report, the final dividend to be distributed would equate to $9.7 million (2023: $9.5 million), adjusted for the amount
offset against the notional employee plan loan. The dividend will be paid out of 2024 financial year profits but is not
recognised as a liability at 30 June 2024.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly
affect, the operations of the Group, the results of the operations of the Group, or the state of the Group’s affairs in
future financial years.
98
financial statements
8
OTHER INFORMATION
8.1
SHARE BASED PAYMENTS
8.1.1
LOAN FUNDED LONG TERM INCENTIVE PLAN (LTIP)
July 2016 plan
On 1 July 2019, 2,200,000 loan funded LTIP shares granted in the July 2016 plan met their vesting conditions, as
determined by the Board, based on meeting Total Shareholder Returns (TSR) and individual KPI targets over the three
year vesting period. As part of the LTIP, loans were provided to the employee participants at grant date equal to the
share value at the scheme commencement multiplied by the number of shares issued. Of the 2,200,000 LTIP shares
which vested:
• loans associated with 880,000 shares were repaid; and
• loans associated with 1,320,000 shares remain unpaid.
Loans are non-recourse and interest free. Loans are required to be repaid to the Company after vesting conditions are
met at the earlier of:
• 10 years from the vesting date, or
• the date the shares are sold.
The shares attract dividends as per ordinary paid up shares. Dividends earned are partly paid in cash to the employee
(24.29% of dividend) and partly offset against the notional loan receivable (75.71% of dividend).
Recycled LTIP shares
On 1 July 2021, 1,050,000 LTIP shares from various LTIP share plans were recycled into the Omnibus share plan as the
recipients did not meet the vesting conditions.
8.1.2 OMNIBUS SHARE PLAN
At the Helloworld Annual General Meeting on 14 November 2019, the Group’s shareholders voted for the adoption of
the Helloworld Travel Limited Omnibus Incentive Plan (the Plan). Under the Plan, the Group can reward and incentivise
employees, directors (including both executive and non-executive directors), contractors and consultants by offering
shares, performance rights or options. Any financial instruments granted under the Plan are held via an employee
share trust (the Trust) established with Perpetual Corporate Trust Limited. As at 30 June 2024, no shares are held
within this Trust (FY23 125,000 shares). The 125,000 shares were allocated to an employee during the period.
Significant transactions executed in the Omnibus share plan were as follows:
FY20 grant
On 17 December 2019, 146,932 shares were granted under the Plan for nil consideration and with no future
performance criteria. The shares were transferred to the employees upon the earlier of resignation or completion
of three years of service from grant date. Accordingly, 218 shares, 108,128 shares and 38,586 shares were allotted in
FY20, FY21 and FY22 respectively.
Recycled LTIP shares
On 1 July 2021, 1,050,000 LTIP shares were transferred into the Omnibus share plan.
FY21 grant
On 18 December 2020, 905,000 shares were granted under the Plan to employees for their sustained contribution
during the period the Group was significantly affected by COVID-19. Shares were issued for nil consideration and
employees were required to remain an employee at Helloworld through to the vesting date of 1 July 2021.
At the vesting date, all eligible employees satisfied the conditions of the Plan and accordingly, 905,000 shares were
allotted on 1 July 2021.
FY22 grant
During FY22, 20,000 shares were issued to two employees, resulting in an expense of $50,500 in the divested
corporate business.
99
MATERIAL ACCOUNTING POLICIES
(A)
LONG TERM INCENTIVE PLAN
The fair value of shares granted under the LTIP includes the loan instruments attached to the shares. The fair
value was calculated using a version of the Black Scholes model incorporating a Monte Carlo simulation analysis
to value the market-based performance conditions. The fair value:
• includes any market performance conditions such as share price;
• excludes the impact of any service and non-market performance vesting conditions such as employees
achieving certain KPIs; and
• includes the impact of any non-vesting conditions.
At each reporting period the Group revises its estimate of the number of equity instruments expected to vest as
a result of non-market based vesting conditions. Any change in original estimates is recognised in profit or loss
with a corresponding increase or decrease in the share based payment reserve.
As LTIP loans are non-recourse, employees have no obligation to repay the loan and in the event of non-
payment, the Group’s only recourse is to the shares issued. As a result, loans are not recorded as a financial
asset. Dividends offset against the notional loan receivable reduce the amount the employee is required to repay
(if they choose to repay the loan).
When the equity instrument vests and is exercised:
• proceeds received (if any) net of any directly attributable transactions costs are recognised directly to share
capital;
• amounts in the share based payments reserve associated with the exercised shares are also transferred to
share capital; and
• holding restrictions are released on the appropriate amount of shares for the employee or franchisee.
Amounts recognised in the share based payment reserve relating to lapsed, forfeited and cancelled shares are
transferred to retained earnings.
(B)
OMNIBUS INCENTIVE PLAN
The fair value of the shares issued under the Omnibus incentive plan is based on the closing price at the date of
issue. The fair value is recognised as an employee benefit expense with a corresponding increase to the share
based payment reserve over the vesting period. When the shares are allotted, amounts recognised in the share
based payment reserve are transferred to share capital. Amounts recognised in share based payment reserve
relating to lapsed, forfeited and cancelled shares are transferred to retained earnings.
8.2 RELATED PARTY TRANSACTIONS
8.2.1 ULTIMATE AND DIRECT PARENT
Helloworld Travel Limited is the legal owner of the Group. Refer to note 8.3: Parent entity financial information for
further information on the parent entity and note 6.3: Subsidiaries for further information on subsidiaries.
100
financial statements
8.2.2 RELATED PARTIES
ASSOCIATES
The list of associates held by the Group are outlined in note 6.1: Equity accounted investments.
JOINTLY CONTROLLED ENTITIES
The list of jointly controlled entities held by the Group are outlined in note 6.1: Equity accounted investments.
ENTITIES WITH SIGNIFICANT INFLUENCE
The following entities were considered to have significant influence over the Group during the year:
• entities related to Andrew Burnes and Cinzia Burnes hold 24.2% at 30 June 2024 (2023: 26.4%) of the ordinary
shares of Helloworld Travel Limited following the FY16 merger with the AOT Group and its controlled entities.
Andrew Burnes is the CEO and Managing Director of Helloworld. Cinzia Burnes is the Chief Operating Officer and an
Executive Director of the Group.
In the prior year, QH Tours Limited, a wholly owned subsidiary of Qantas Airways Limited, ceased to be an entity
with significant influence on the Group when it sold its 12.4% interest in the Group on 8 November 2022. Its Board
representative, Andrew Finch, resigned on 8 November 2022.
8.2.3 TRANSACTIONS WITH RELATED PARTIES
2024
$’000
2023
$’000
REVENUE DERIVED FROM:
Equity accounted investments
7,091
5,064
Entities with significant influence over the Group
-
4,850
EXPENSES INCURRED AS A RESULT OF TRANSACTIONS WITH:
Equity accounted investments
5,323
5,840
Entities with significant influence over the Group
1,786
1,717
RECEIVABLES AT 30 JUNE:
Equity accounted investments
160
153
PAYABLES AT 30 JUNE:
Equity accounted investments
779
1,107
8.2.4 KEY MANAGEMENT PERSONNEL (KMP) COMPENSATION
2024
$
2023
$
Short term employee benefits
3,928,323
4,254,763
Long term employee benefits
108,525
67,530
Share based payment benefits
326,250
-
Post-employment benefits
180,574
146,040
TOTAL KEY MANAGEMENT PERSONNEL COMPENSATION
4,543,672
4,468,333
Detailed key management personnel compensation remuneration disclosures are provided in the Remuneration
Report, contained within the Directors Report.
8.2.5 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
The Group entered into a lease arrangement with Normanby Road Holdings Pty Ltd, a company owned by Andrew
Burnes and Cinzia Burnes, on 1 October 2021. The lease terminates on 1 July 2027. Lease payments of $1,785,238
(2023: $1,716,661) were made during the year.
The terms and conditions of all related party transactions were no more favourable than those available in similar
transactions.
101
8.3 PARENT ENTITY FINANCIAL INFORMATION
The legal parent company of the Group is Helloworld Travel Limited. Set out below is the supplementary information
about the parent entity.
SUMMARISED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
PARENT
2024
$’000
2023
$’000
Profit after income tax
10,014
15,501
TOTAL COMPREHENSIVE INCOME
10,014
15,501
SUMMARISED BALANCE SHEET
PARENT
2024
$’000
2023
$’000
Total current assets
111,160
103,683
Total non-current assets
169,341
167,566
TOTAL ASSETS
280,501
271,249
Total current liabilities
-
-
Total non-current liabilities
-
-
TOTAL LIABILITIES
-
-
NET ASSETS
280,501
271,249
EQUITY
Issued capital
644,464
628,065
Share based payments reserve
1,343
1,016
Accumulated losses
(365,306)
(357,832)
TOTAL EQUITY
280,501
271,249
Parent entity guarantees in respect of debts of its subsidiaries
The legal parent, Helloworld Travel Limited, has entered into a Deed of Cross Guarantee. Refer note 8.4: Deed of cross
guarantee for further details.
Parent entity tax liabilities in respect of its subsidiaries
The parent entity, Helloworld Travel Limited, has entered into a tax funding agreement with the effect that it
guarantees tax liabilities of other entities in the tax consolidated group. At 30 June 2024 the tax consolidated group
has a tax payable of $11.8 million (2023: net carry-forward tax loss of $0.3 million). Refer note 2.4: Income taxes for
further details on the tax funding agreement.
Parent entity contingencies
As 30 June 2024, the parent entity had no significant contingent assets or contingent liabilities.
Parent entity issued capital
The issued capital of the parent entity does not equal the issued capital of the consolidated Group due to reverse
acquisition business combinations previously undertaken by the Group.
MATERIAL ACCOUNTING POLICIES
The financial information for the legal parent entity, Helloworld Travel Limited, has been prepared on the same
basis as the financial statements. The following are accounting policies that are significant to Helloworld Travel
Limited only as the related transactions are either not material for the Group or eliminated on consolidation.
• investments in subsidiaries are accounted for at cost and are tested for impairment in accordance with the
policy adopted for non-financial assets in note 4.4: Impairment of non-financial assets. Dividends received from
subsidiaries are recognised in profit or loss when a right to receive the dividend is established; and
• where Helloworld Travel Limited has provided financial guarantees in relation to loans and payables of
subsidiaries for no compensation, the fair values of these guarantees are accounted for as contributions and
recognised as part of the cost of investment.
102
financial statements
8.4 DEED OF CROSS GUARANTEE
Helloworld Travel Limited and each of the wholly owned subsidiaries listed below, (together referred to as the Closed
Group) have entered into a Deed of Cross Guarantee (the Deed), as defined in ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785 (the Instrument). The effect of the Deed is that each entity in the Closed Group
guarantees the payment in full of all debts of the other entities in the Closed Group in the event of their winding up.
Pursuant to the Instrument, the wholly-owned subsidiaries within the Closed Group are relieved from the requirement
to prepare, audit, and lodge separate financial reports.
The statement of income, other comprehensive income and balance sheet have been prepared in accordance with
note 1.1: Basis of preparation comprising Helloworld Travel Limited and the controlled entities which are party to the
Deed, after eliminating all transactions between parties to the Deed of Cross Guarantee and is set out below.
• Helloworld Travel Limited
• ACN 003 683 967 Pty Limited
• AOT Group Limited
• AOT Inbound Pty Ltd
• AOT Retail Pty Ltd
• ATS Pacific Pty Limited
• Aus STS Holdco II Pty Ltd
• Australian Online Travel Pty Ltd
• Best Flights Pty Limited
• Creative Cruising Pty Ltd(i)
• Cruiseco Pty Ltd
• Express IP Holdings Pty Ltd(i)
• Flight Systems Pty Limited
• Harvey Holidays Pty Limited
• Harvey World Travel Franchises Pty Limited
• Harvey World Travel Group Pty Limited
• Helloworld Franchising Pty Limited
• Helloworld Group Pty Limited
• Helloworld International Holdings Pty Ltd(i)
• Helloworld IP Pty Limited
• Helloworld SC Holdings Pty Ltd(i)
• Helloworld Services Pty Limited
• Helloworld Travel Services Group Pty Limited
• Helloworld Travel Services Holdings Pty Limited
• Helloworld Travel Southland Pty Limited
• italktravel Pty Ltd(i)
• Jetset Pty Limited
• Jetset Travelworld Network Pty Limited
• JTG Corporate Pty Limited
• Luxury Getaways Pty Limited
• Magellan Travel Pty Limited
• Orient Express Travel Group Pty Ltd(i)
• Pillowpoints Pty Limited
• Ready Rooms Pty Ltd
• Retail Travel Investments Pty Limited
• Skiddoo IT Pty Limited
• Skiddoo Pty Limited
• Sunlover Holidays Pty Limited
• Transonic Travel Pty Limited
• Travelpoint Pty Limited
• Travelscene Pty Limited
• Travelworld Pty Limited
• Viva Holidays II Limited
• Viva Holidays Pty Limited
(i)
These companies entered into the Deed of Cross Guarantee during the year ended 30 June 2024.
103
CLOSED GROUP STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
Closed Group
2024
$’000
2023
$’000
Revenue
58,468
46,057
Other income
54,930
-
TOTAL REVENUE AND OTHER INCOME
113,398
46,057
Employee benefits expenses
(30,674)
(28,701)
Advertising, selling and marketing expenses
(16,989)
(12,294)
Communication and technology expenses
(4,599)
(4,020)
Occupancy expenses
230
818
Operating expenses
(9,342)
(10,105)
Depreciation and amortisation expense
(6,104)
(5,343)
Finance expense
(1,716)
(2,039)
Share of profit/(loss) of equity accounted investments
1,426
(123)
PROFIT/(LOSS) BEFORE INCOME TAX
45,630
(15,750)
Income tax (expense)/benefit
8,739
(2,136)
PROFIT/(LOSS)AFTER INCOME TAX
54,369
(17,886)
OTHER COMPREHENSIVE INCOME/(LOSS)
Exchange differences on translation of foreign operations
(2,898)
(2,744)
Gain/(loss) on revaluation of investment in CTM
(5,822)
3,123
Tax on revaluation of investment in CTM
1,746
(1,922)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR
47,395
(19,429)
CLOSED GROUP MOVEMENT IN ACCUMULATED LOSSES
Closed Group
2024
$’000
2023
$’000
ACCUMULATED LOSSES AT THE BEGINNING OF THE FINANCIAL YEAR
(109,290)
(61,440)
Profit/(loss) after income tax benefit
54,369
(17,886)
Transfer of realised loss from investment revaluation
(1,414)
(4,323)
Dividends paid
(17,488)
(18,483)
Transfer of redemption reserve to accumulated losses
-
(7,200)
Franchise loyalty scheme shares lapsed in prior years
-
42
ACCUMULATED LOSSES AT THE END OF THE FINANCIAL YEAR
(73,823)
(109,290)
104
financial statements
CLOSED GROUP BALANCE SHEET AT 30 JUNE
2024
$’000
2023
$’000
CURRENT ASSETS
Cash and cash equivalents
58,903
101,113
Trade and other receivables
46,117
27,728
Accrued revenue
991
2,470
Inventories
79
131
TOTAL CURRENT ASSETS
106,090
131,442
NON-CURRENT ASSETS
Trade and other receivables
77
77
Property, plant and equipment
294
441
Right of use assets
8,905
9,047
Intangible assets
220,478
163,374
Deferred tax assets
10,713
10,408
Investments
108,060
102,768
TOTAL NON-CURRENT ASSETS
348,527
286,115
TOTAL ASSETS
454,617
417,557
CURRENT LIABILITIES
Trade and other payables
75,582
111,153
Lease liabilities
3,563
2,953
Provisions
9,921
10,924
Deferred revenue
3,986
4,103
Income tax payable
24,940
3
TOTAL CURRENT LIABILITIES
117,992
129,136
NON-CURRENT LIABILITIES
Lease liabilities
6,653
7,683
Deferred tax liabilities
14,725
18,326
Provisions
3,503
765
Other non-current liabilities
930
516
TOTAL NON-CURRENT LIABILITIES
25,811
27,290
TOTAL LIABILITIES
143,803
156,426
NET ASSETS
310,814
261,131
EQUITY
Contributed equity
390,608
374,208
Reserves
(5,971)
(3,787)
Accumulated losses
(73,823)
(109,290)
TOTAL EQUITY
310,814
261,131
105
8.5 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
RISK MANAGEMENT
The Group’s Treasury function is responsible for managing its liquidity, funding, and capital requirements as well as
identifying and managing financial risks relating to the Group’s operations. These financial risks include:
• liquidity risk;
• market risk; and
• credit risk.
The Group adheres to a treasury policy approved by the Board, which provides written principles on liquidity risk,
interest rate risk, foreign exchange risk, credit risk, and the use of derivatives for hedging purposes. The Treasury
function reports on its compliance with the policy to the Board. As a consequence of COVID-19, the Group has
temporarily ceased hedging due to the difficulties in reliably estimating the amount and timing of foreign currency
denominated receipts and payments.
The Group is not permitted by the Board’s risk management policy to engage in, issue or hold derivative financial
instruments for speculative trading purposes.
CAPITAL MANAGEMENT
The Board’s policy is aimed at maintaining a robust capital base to instil confidence among investors, creditors, and
the market while also facilitating the ongoing growth of the business.
The Board consistently monitors key indicators such as the Group’s liquidity position, return on capital, dividend
distribution to ordinary shareholders, cash flow generation, and the debt to equity ratio.
To achieve or adjust the capital structure as needed, the Board considers the following factors:
• potential debt repayment obligations;
• anticipated investment in fixed asset;
• funding options for future acquisitions (via either debt or equity instruments); and
• the appropriate level of dividends to support returns for ordinary shareholders.
Neither Helloworld Travel Limited nor any of its subsidiaries are subject to externally imposed capital requirements.
8.5.1 LIQUIDITY RISK
Liquidity risk refers to the potential that the Group may not fulfill its financial obligations as they fall due. The Group’s
strategy for liquidity management is to ensure, to the greatest extent feasible, that it maintains ample liquidity to
satisfy its liabilities when due. This commitment applies in both regular and stressed scenarios, all the while preventing
losses or risking damage to the Group’s reputation.
The Group manages short-term liquidity risk by aligning surplus and deficit cash flows across its entities. Furthermore,
the Group maintains an additional level of excess liquidity throughout an ongoing assessment of the current operating
environment, preparing for any unforeseen circumstances.
Management monitors rolling forecasts of the Group’s liquidity reserves and cash and cash equivalents (outlined
in note 5.1: Cash, cash equivalents and cash deposits) based on the projected cash flows. Details of financing
arrangements are provided in note 5.2: Financing arrangements.
(A) MATURITIES OF FINANCIAL LIABILITIES
The tables below analyse and arrange the Group’s financial liabilities into relevant maturity groupings based on their
contractual maturities. The amounts disclosed in the tables represent contractual undiscounted cash flows. Balances
due within 12 months are equal to their carrying balances as the impact of discounting is not significant.
106
financial statements
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
Carrying
value
$’000
Less than
6 months
$’000
6–12
months
$’000
1–2
years
$’000
2–3
years
$’000
3–4
years
$’000
4–5
years
$’000
More
than
5 years
$’000
Total
$’000
2024 NON-DERIVATIVE
FINANCIAL INSTRUMENTS
Trade and other payables
184,047 184,047
-
-
-
-
-
-
184,047
Lease liabilities
22,197
3,810
3,800
7,357
6,210
2,015
1,143
148
24,483
Deferred consideration
1,294
494
-
800
-
-
-
-
1,294
TOTAL
207,538
188,351
3,800 8,157 6,210 2,015
1,143
148 209,824
CONTRACTUAL MATURITIES OF FINANCIAL LIABILITIES
Carrying
value
$’000
Less than
6 months
$’000
6–12
months
$’000
1–2
years
$’000
2–3
years
$’000
3–4
years
$’000
4–5
years
$’000
More
than
5 years
$’000
Total
$’000
2023 NON-DERIVATIVE
FINANCIAL INSTRUMENTS
Trade and other payables
153,978
153,978
-
-
-
-
-
-
153,978
Lease liabilities
22,144
2,834
2,660
5,407
4,997
3,806
1,468
1,167
22,339
Deferred consideration
383
383
-
-
-
-
-
-
383
TOTAL
176,505
157,195
2,660
5,407
4,997
3,806
1,468
1,167
176,700
107
8.5.2 MARKET RISK
Market risk is the risk that changes in market prices will affect the Group’s income or the value of its holdings in
financial instruments.
(A) EQUITY PRICE RISK
The Group is exposed to equity price risk through its holdings in CTM. Changes in equity prices will affect the fair value
of these shares.
Sensitivity
The information below summarises the impact of a 5% increase and decrease the CTM share price on OCI (before tax).
IMPACT ON OCI
CTM SHARES
2024
$’000
2023
$’000
Increase in share price by 5% (2023: 5%)
922
1,646
Decrease in share price by 5% (2023: 5%)
(922)
(1,646)
(B) FOREIGN EXCHANGE RISK
The Group operates internationally and faces foreign exchange risk in its wholesale operations due to future cash flows
being denominated in foreign currencies. Although revenue is earned in the local currency of the wholesale businesses,
the cost of sales is settled based on quoted prices in the supplier’s local currency, reflecting the nature of the Group’s
wholesale operations.
Before the onset of COVID-19, foreign exchange risk was assessed by forecasting highly probable future purchases.
Hedge contracts to acquire foreign currencies were timed to mature alongside scheduled payments to suppliers
to reduce the volatility of the Australian dollar cash flows. However, as a result of COVID-19, the Group temporarily
suspended hedging foreign currency payables and has not resumed this activity.
EXPOSURE
The Group’s net foreign currency exposure risk as of 30 June 2024 includes the following financial assets and liabilities:
• foreign cash holdings;
• financial assets including trade receivables and other loans denominated in foreign currencies; and
• financial liabilities including trade payables denominated in foreign currencies.
The quantitative data for the Group’s exposure to New Zealand dollar currency risk is as follows:
AUD EQUIVALENT
2024
$’000
2023
$’000
Current assets
59,992
39,974
Current liabilities
(35,634)
(31,165)
Non-current liabilities
(2,665)
(4,238)
NET FOREIGN CURRENCY EXPOSURE
21,693
4,571
108
financial statements
The quantitative data for the Group’s exposure to other currency risks are as follows:
AUD EQUIVALENT
2024
$’000
2023
$’000
CURRENCY
GBP
91
91
FJD
647
326
Other currencies
215
91
NET TOTAL FOREIGN CURRENCY EXPOSURE ASSET
953
508
Sensitivity
The table below summarises the impact of a 10% increase (strengthening of AUD) and decrease (weakening of
AUD) in foreign exchange rates on the measurement of financial instruments denominated in foreign currency and
the corresponding impact in the income statement. The sensitivity rate represents management’s evaluation of
the reasonably possible change in foreign exchange rates, with a focus on New Zealand. This rate is utilised when
communicating foreign currency risk to key management personnel. The sensitivity analysis assumes that all other
variables including interest rates, remain constant.
IMPACT ON NET PROFIT
BEFORE TAX
2024
$’000
2023
$’000
10% increase (2023: 10%)
(1,972)
(518)
10% decrease (2023: 10%)
2,410
495
(C)
INTEREST RATE RISK
The Group’s interest rate risk arises from future cash flows associated with cash assets. It does not hedge its exposure
to potential fluctuations in future cash flows resulting from shifts in market interest rates.
During periods when the Group is in a net debt position, the management of interest rate expense risk involves the
optimisation of debt servicing costs and the maximisation of interest income. This includes periodic reviews, as
needed, to evaluate options such as restructuring interest-bearing debt, potential debt repayment, and determining
the appropriate level of investment of surplus cash in interest bearing accounts.
Exposure
At 30 June 2024, the Group had the following cash and cash equivalent and cash deposit balances:
• term deposits amounting to $8.9 million (2023: $28 million) with an average interest rate of 4.77% per annum (2023:
4.47%); and
• other cash funds held in operational and foreign currency bank accounts with interest at market rates under normal
commercial terms.
Sensitivity
The information below summarises the impact of a 100 basis points per annum increase and decrease in interest rates on
the net profit in the Consolidated income statement.
IMPACT ON
NET PROFIT BEFORE
TAX/EQUITY
CASH AT CALL
2024
$’000
2023
$’000
Increase by 100 basis points (2023: 100 basis points)
-
-
Decrease by 100 basis points (2023: 100 basis points)
-
-
SHORT TERM DEPOSITS
Increase by 100 basis points (2023: 100 basis points)
89
280
Decrease by 100 basis points (2023: 100 basis points)
(89)
(280)
109
8.5.3 CREDIT RISK
The Group engages in transactions with a wide range of customers and counterparties across different countries, in
accordance with the policy approved by the Board. Credit risk arises from the potential that a counterparty will fail to
fulfill its contractual obligation related to cash and cash equivalents, trade and other receivables, accrued revenue and
favourable derivatives, leading to financial loss for the Group. Credit risk is evaluated at fair value.
(A)
RISK MANAGEMENT
The Group faces credit risk stemming from relationships with travel agents, airlines, industry settlement organisations
and direct suppliers. To mitigate the risk, the Group employs stringent credit policies, conducts regular monitoring and
accreditation of travel agents through industry programs. Furthermore, a portion of the Group’s credit risk is alleviated
through payment processes that offset amounts payable against amounts receivable between the Group and its key
suppliers.
In cases where the Group identifies specific credit risk associated with a counterparty, pre-payment for services
provided is mandated. A reservation for such a counterparty is not confirmed or ticketed prior to receiving payment in
full. The Group does not retain collateral as security, nor does it adhere to a policy of transferring receivables to special
purpose entities.
Exposure
The Group’s maximum exposure to credit risk is represented by the carrying amount of the financial asset, net of any
applicable loss allowance. The table below sets out the maximum exposure to credit risk as of 30 June:
2024
$’000
2023
$’000
Cash and cash equivalents and cash deposits
161,877
160,888
Trade receivables
50,893
37,435
Other receivables
5,493
5,572
Accrued revenue
28,369
29,311
TOTAL CREDIT RISK EXPOSURE
246,632
233,206
110
financial statements
(B)
IMPAIRMENT OF FINANCIAL ASSETS
The Group has three types of financial assets that are subject to the expected credit loss model:
• trade receivables;
• accrued revenue; and
• other financial assets at amortised cost (such as other receivables).
The loss allowance at 30 June 2024 and 30 June 2023 was determined as follows:
2023
Not past due
$’000
Past due
1-30 days
$’000
Past due
31-60 days
$’000
Past due
61-90 days
$’000
More than
90 days
$’000
Total
$’000
Trade receivables
30,385
3,039
913
1,050
3,970
39,357
Other receivables
5,572
-
-
-
-
5,572
Accrued revenue
29,311
-
-
-
-
29,311
GROSS CARRYING AMOUNTS
65,268
3,039
913
1,050
3,970
74,240
Expected loss rate
-
1.0%
2.5%
5.0%
45.7%
Trade receivables
-
(30)
(23)
(53)
(1,816)
(1,922)
LOSS ALLOWANCES
-
(30)
(23)
(53)
(1,816)
(1,922)
NET CARRYING AMOUNTS
65,268
3,009
890
997
2,154
72,318
2024
Not past due
$’000
Past due
1-30 days
$’000
Past due
31-60 days
$’000
Past due
61-90 days
$’000
More than
90 days
$’000
Total
$’000
Trade receivables
43,996
3,623
1,445
736
3,408
53,208
Other receivables
5,493
-
-
-
-
5,493
Accrued revenue
28,369
-
-
-
-
28,369
GROSS CARRYING AMOUNTS
77,858
3,623
1,445
736
3,408
87,070
Expected loss rate
-
1.0%
2.5%
5.0%
64.7%
Trade receivables
-
(36)
(36)
(37)
(2,206)
(2,315)
LOSS ALLOWANCES
-
(36)
(36)
(37)
(2,206)
(2,315)
NET CARRYING AMOUNTS
77,858
3,587
1,409
699
1,202
84,755
As of 30 June 2024, trade receivables of $6.9 million (2023: $7.1 million) were aged between 1 and more than 90 days past
due but not impaired. These relate to several independent counterparties, none of whom have a recent history of default.
Movements in the loss allowance for both trade receivables and accrued revenue are as follows:
2024
$’000
2023
$’000
BALANCE AT 1 JULY
1,922
5,893
Additional loss allowance recognised
1,330
1,397
Writeback of loss allowance
(937)
(1,868)
Writeoff of loss allowance
-
(3,500)
BALANCE AT 30 JUNE
2,315
1,922
111
8.5.4 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
The Group holds the following financial instruments:
2024
$'000
Carrying value
2024
$'000
Fair value
2023
$'000
Carrying value
2023
$'000
Fair value
FINANCIAL ASSETS MEASURED AT FAIR VALUE
THROUGH OCI
Financial assets (equity securities)
20,322
20,322
34,329
34,329
TOTAL
20,322
20,322
34,329
34,329
FINANCIAL ASSETS MEASURED AT AMORTISED
COST
Cash and cash equivalents and cash deposits(i)
161,877
161,877
160,888
160,888
Trade and other receivables(i)(ii)
56,386
56,386
43,007
43,007
TOTAL
218,263
218,263
203,895
203,895
FINANCIAL LIABILITIES MEASURED AT FAIR
VALUE THROUGH PROFIT AND LOSS
Deferred consideration
1,294
1,294
383
383
TOTAL
1,294
1,294
383
383
FINANCIAL LIABILITIES MEASURED AT
AMORTISED COST
Trade and other payables(i)
184,047
184,047
153,978
153,978
TOTAL
184,047
184,047
153,978
153,978
(i)
The carrying amounts of cash and cash equivalents and cash deposits, trade and other receivables and trade and other payables generally
approximate to fair value.
(ii) Trade and other receivables consist of current trade and other receivables of $56.2 million (2023: $42.7 million) and non-current trade and
other receivables of $0.2 million (2023: $0.3 million).
112
financial statements
The balance sheet includes financial assets and financial liabilities that are measured at fair value. These fair values are
categorised into hierarchy levels that are representative of the inputs used in measuring the fair value. The different
levels have been defined as follows:
• Level 1 – uses quoted prices for identical instruments in active markets.
• Level 2 – uses inputs for the asset or liability other than quoted prices that are observable either directly or indirectly.
• Level 3 – uses valuation techniques where one or more significant inputs are based on unobservable market data.
There were no transfers between level 1, 2 and 3 for recurring fair value measurements during the year.
The table below analyses financial instruments carried at fair value, by valuation method.
2023
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Investment in Corporate Travel Management Limited
32,930
-
-
32,930
Investment in Hunter Travel Group Pty Ltd
-
-
473
473
Investment in Wander Beyond Travel Pty Ltd
-
-
813
813
Investment in Brooker Travel NZ
-
-
45
45
Investment in Tin Alley
-
-
68
68
TOTAL ASSETS
32,930
-
1,399
34,329
Deferred consideration
-
-
383
383
TOTAL LIABILITIES
-
-
383
383
2024
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
Investment in Corporate Travel Management Limited
18,440
-
-
18,440
Investment in Hunter Travel Group Pty Ltd
-
-
473
473
Investment in Wander Beyond Travel Pty Ltd
-
-
813
813
Investment in Brooker Travel NZ
-
-
45
45
Investment in Tin Alley
-
-
551
551
TOTAL ASSETS
18,440
-
1,882
20,322
Deferred consideration
-
-
1,294
1,294
TOTAL LIABILITIES
-
-
1,294
1,294
113
8.6 LITIGATION MATTERS
8.6.1 STA TRAVEL ACADEMIC LITIGATION
The vendors of the TravelEdge Group (the Plaintiffs) are claiming $4.0 million is owed by a (now former) subsidiary
of Helloworld under a Share Sale Agreement dated 24 September 2019 relating to the purchase by the subsidiary of
the shares in TravelEdge Pty Ltd and Quay Services Pty Ltd. The claim relates to STA Travel Academic Pty Ltd (which
formed part of the TravelEdge Group business).
In October 2023, the Supreme Court of New South Wales found in favour of the Plaintiffs for the amount of $4.0
million, plus interest and costs (the latter have not yet been quantified). Helloworld appealed the judgement. On 16
February 2024, Helloworld paid an amount of $4.9 million into a non-interest-bearing Court bank account. In May
2024, the Court of Appeal handed down its judgment and Helloworld was not successful. Helloworld has sought
special leave to appeal to the High Court and as at the date of these financial statements Helloworld has not been
informed whether the High Court will grant special leave to appeal. On 1 July 2024, Helloworld paid a further $0.2
million into the Court bank account relating to post judgment interest on the lower court judgment for the 6 months
to 31 December 2024. The funds deposited into the Court bank account are to be held pending determination of the
special leave application. The Group has received advice on the claim.
At 30 June 2024, the Company has recognised an expense relating to this matter in the amount of $5.6 million
(inclusive of interest and an estimate of costs).
8.6.2 ASIA ESCAPES LITIGATION
In May 2018, Helloworld, through its wholly owned subsidiary Transonic Travel Pty Ltd, acquired a controlling (60%)
stake in Keygate Holdings Pty Ltd (trading as Asia Escape Holidays) for an amount of $2 million cash and a further
$0.88m in Helloworld shares.
In June 2021, Helloworld and Transonic Travel commenced proceedings in the Victorian Supreme Court against the
vendor (Tilakee Nominees Pty Ltd), the sole director and shareholder of the vendor (Mason Adams) and the vendor’s
accountant (Shakespeare Partners Pty Ltd). Transonic Travel and Helloworld claimed damages from the vendor in
relation to various breaches of the share sale agreement and contraventions of the Australian Consumer Law, and from
Mr. Adams and Shakespeare Partners Pty Ltd in relation to their involvement in the vendor’s contraventions.
The damages encompassed the original cash investment that was paid under the contract plus additional amounts
that Helloworld paid to fund client refunds and meet the operating expenses of Asia Escapes Holidays. In March 2024,
the Victorian Supreme Court found in favour of Helloworld and Transonic Travel awarding an amount of $6.4 million
representing damages and interest. Helloworld and Transonic Travel are in the process of having their legal costs
taxed, absent agreement with the defendants. Prior to 30 June 2024, Helloworld received payment of the judgment
amount and interest, in the amount of $6.4 million.
One of the defendants has appealed the judgment; however, at the date of these financial statements the appeal has
not yet been listed for hearing. The Group has received advice on the claim.
At 30 June 2024, the Company has recognised an amount of $3.2 million as other income relating to this matter.
8.7 AUDITOR'S REMUNERATION
During the financial year, the following fees were paid or were payable for services provided by EY, its related practices
and unrelated audit firms:
2024
$
2023
$
AUDIT SERVICES - EY AUSTRALIA
Audit or review of the financial statements for the current year audit
1,429,000
1,168,600
Audit or review of the financial statements for the prior year audit
-
317,000
TOTAL AUDIT SERVICES - EY AUSTRALIA
1,429,000
1,485,600
NETWORK FIRMS OF EY AUSTRALIA
Audit services
33,500
25,000
TOTAL SERVICES - NETWORK FIRMS OF EY AUSTRALIA
33,500
25,000
114
financial statements
Name
Country of
incorporation
Tax Residency
Entity Type
2024
%
2023
%
Helloworld Travel Limited
Australia
Australia
Body Corporate
N/A
N/A
12518 Pty Ltd
Australia
Australia
Body Corporate
100
100
20118181 Pty Ltd
Australia
Australia
Body Corporate
100
100
ACN 003 683 967 Pty Limited
Australia
Australia
Body Corporate
100
100
AOT Group Limited
Australia
Australia
Body Corporate
100
100
AOT Inbound Pty Ltd
Australia
Australia
Body Corporate
100
100
AOT Retail Pty Ltd
Australia
Australia
Body Corporate
100
100
ATS Logistics Pty Ltd
Australia
Australia
Body Corporate
85
85
ATS Pacific Pty Limited
Australia
Australia
Body Corporate
100
100
Aus STS Holdco II Pty Ltd
Australia
Australia
Body Corporate
100
100
Australian Online Travel Pty Ltd
Australia
Australia
Body Corporate
100
100
Best Flights Pty Limited
Australia
Australia
Body Corporate
100
100
Creative Cruising Pty Ltd
Australia
Australia
Body Corporate
100
-
Cruiseco Pty Ltd
Australia
Australia
Body Corporate
100
100
Discovery Travel Centre Cammeray Pty Ltd
Australia
Australia
Body Corporate
100
100
Entertainment Logistix Pty Ltd
Australia
Australia
Body Corporate
85
85
Express IP Holdings Pty Ltd
Australia
Australia
Body Corporate
100
-
Express Travel Group Pty Ltd
Australia
Australia
Body Corporate
100
-
Flight Systems Pty Limited
Australia
Australia
Body Corporate
100
100
Harvey Holidays Pty Limited
Australia
Australia
Body Corporate
100
100
Harvey World Travel Franchises Pty Limited
Australia
Australia
Body Corporate
100
100
Harvey World Travel Group Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Franchising Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Group Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld International Holdings Pty Ltd
Australia
Australia
Body Corporate
100
100
Helloworld IP Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld SC Holdings Pty Ltd
Australia
Australia
Body Corporate
100
100
Helloworld Services Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Travel Services (Australia) Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Travel Services Group Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Travel Services Holdings Pty Limited
Australia
Australia
Body Corporate
100
100
Helloworld Travel Southland Pty Limited
Australia
Australia
Body Corporate
100
100
italktravel Pty Ltd
Australia
Australia
Body Corporate
100
-
Jetset Pty Limited
Australia
Australia
Body Corporate
100
100
Jetset Travelworld Network Pty Limited
Australia
Australia
Body Corporate
100
100
JTG Corporate Pty Limited
Australia
Australia
Body Corporate
100
100
Keygate Holdings Pty Limited
Australia
Australia
Body Corporate
60
60
Luxury Getaways Pty Limited
Australia
Australia
Body Corporate
100
100
Magellan Travel Pty Limited
Australia
Australia
Body Corporate
100
100
Orient Express Travel Group Pty Ltd
Australia
Australia
Body Corporate
100
-
CONSOLIDATED ENTITY DISCLOSURE
STATEMENT
The Consolidated entity disclosure statement is required by section 295(3A) of the Corporations Act 2001. It includes
disclosures about entities consolidated within the Helloworld Group as at 30 June 2024, including details about the tax
residency of each entity.
The Consolidated entity disclosure statement sets out a complete list of Helloworld Travel Limited and its controlled
entities as at 30 June 2024 as detailed in the table below.
115
Name
Country of
incorporation
Tax Residency
Entity Type
2024
%
2023
%
Pacific Leisure Group Pty Ltd
Australia
Australia
Body Corporate
100
100
Pillowpoints Pty Limited
Australia
Australia
Body Corporate
100
100
Ready Rooms Pty Ltd
Australia
Australia
Body Corporate
100
100
Retail Travel Investments Pty Limited
Australia
Australia
Body Corporate
100
100
ShowGroup Freight Pty Ltd
Australia
Australia
Body Corporate
85
85
Skiddoo IT Pty Limited
Australia
Australia
Body Corporate
100
100
Skiddoo Pty Limited
Australia
Australia
Body Corporate
100
100
Sunlover Holidays Pty Limited
Australia
Australia
Body Corporate
100
100
Transonic Travel Pty Limited
Australia
Australia
Body Corporate
100
100
Travelpoint Pty Limited
Australia
Australia
Body Corporate
100
100
Travelscene Pty Limited
Australia
Australia
Body Corporate
100
100
Travelworld Pty Limited
Australia
Australia
Body Corporate
100
100
Viva Holidays II Limited
Australia
Australia
Body Corporate
100
100
Viva Holidays Pty Limited
Australia
Australia
Body Corporate
100
100
AOT Business Consulting (Shanghai) Limited
China
China
Body Corporate
100
100
Allied Tour Service (Pacific) Pte Limited
Fiji
Fiji
Body Corporate
100
100
Coral Sun (Fiji) Pte Limited
Fiji
Fiji
Body Corporate
60
60
Great Sights (Fiji) Pte Limited
Fiji
Fiji
Body Corporate
60
60
Tourist Transport (Fiji) Pte Limited
Fiji
Fiji
Body Corporate
60
60
Helloworld Travel Services Greece M.I.K.E
Greece
Australia
Body Corporate
100
100
AOT India PVT LTD
India
India
Body Corporate
100
100
AOT New Zealand Limited
New Zealand
New Zealand
Body Corporate
100
100
Australian Travel Service (Pacific) Limited
New Zealand
New Zealand
Body Corporate
100
100
Biztrav Limited
New Zealand
New Zealand
Body Corporate
76.6
76.6
Creative Cruising NZ Limited
New Zealand
New Zealand
Body Corporate
100
-
Cruise Spirit Limited
New Zealand
New Zealand
Body Corporate
100
-
Express Tickets Limited
New Zealand
New Zealand
Body Corporate
100
-
First Fares Limited
New Zealand
New Zealand
Body Corporate
100
-
First Travel Collective Limited
New Zealand
New Zealand
Body Corporate
100
-
First Travel Group Limited
New Zealand
New Zealand
Body Corporate
100
-
First Travel Limited
New Zealand
New Zealand
Body Corporate
100
-
GP Holiday Shoppe Limited
New Zealand
New Zealand
Body Corporate
100
100
Gullivers Pacific Limited
New Zealand
New Zealand
Body Corporate
100
100
Harvey World Travel (2008) Limited
New Zealand
New Zealand
Body Corporate
100
100
Helloworld NZ Franchising Limited
New Zealand
New Zealand
Body Corporate
100
100
Helloworld NZ Limited
New Zealand
New Zealand
Body Corporate
100
100
Helloworld Travel Services (NZ) Limited
New Zealand
New Zealand
Body Corporate
100
100
Independent Travel Advisors Limited
New Zealand
New Zealand
Body Corporate
100
-
Just Tickets Limited
New Zealand
New Zealand
Body Corporate
100
100
Lifestyle Holidays Limited
New Zealand
New Zealand
Body Corporate
100
-
Pacific Leisure Group Limited
New Zealand
New Zealand
Body Corporate
100
100
Siteconnect Limited
New Zealand
New Zealand
Body Corporate
100
-
Sunlover Holidays Limited
New Zealand
New Zealand
Body Corporate
100
100
Travel Brokers Limited
New Zealand
New Zealand
Body Corporate
100
100
United Travel Limited
New Zealand
New Zealand
Body Corporate
100
100
Williment Travel Group Limited
New Zealand
New Zealand
Body Corporate
100
100
You Travel Limited
New Zealand
New Zealand
Body Corporate
100
-
Skiddoo Management Inc.
Philippines
Philippines
Body Corporate
100
100
Skiddoo Philippines Inc.
Philippines
Philippines
Body Corporate
100
100
116
financial statements
DIRECTORS’ DECLARATION
IN THE DIRECTORS’ OPINION:
(a) The consolidated financial statements and notes that are set out on pages 52 to 116 are in
accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), other mandatory professional reporting requirements and the Corporations
Regulations 2001; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable; and
(c) At the date of this declaration there are reasonable grounds to believe that the Company and
the Group entities identified in note 8.4 will be able to meet any obligations or liabilities to which
they are or may become subject to by virtue of the deed of cross guarantee described in note 8.4
between the Company and those Group entities pursuant to ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785.
(d) The consolidated entity disclosure statement required by section 295(3A) of the Corporations Act
2001 for the year ended 30 June 2024 is true and correct.
Note 1 confirms that the consolidated financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial
Officer required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
Garry Hounsell
Chairman
Helloworld Travel Limited
Melbourne, 27 August 2024
117
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Independent Auditor’s Report to the Members of Helloworld Travel
Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Helloworld Travel Limited (the ‘Company’) and its subsidiaries
(collectively the ‘Group’), which comprises the consolidated balance sheet as at 30 June 2024, the
consolidated income statement, consolidated statement of other comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then ended, notes
to the financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a.
Giving a true and fair view of the consolidated balance sheet of the Group as at 30 June 2024 and
of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including
Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our
audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a
separate opinion on these matters. For each matter below, our description of how our audit addressed
the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
financial report.
118
independent auditor's report
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
1. Revenue recognition, including deferred revenue
Why significant
How our audit addressed the key audit matter
The Group earns revenue from the provision of travel
and travel related services as outlined in Note 2.1
(including deferred amounts outlined in Note 3.4).
The recognition of commissions (excluding override
commissions) and transaction and service fee revenue
required:
► Assessment of the timing and satisfaction of
performance obligations to customers.
► Recognition, measurement and classification of
deferred revenue where monies have been received
but services not yet rendered.
► Assessment of the likelihood of future significant
revenue reversals and therefore the need for any
revenue deferral.
Revenue recognition, including deferred revenue was a
key audit matter due to the significance of the
commission and transaction and service fee revenue to
the Group’s financial statements and the differing nature
of performance obligations for products and services
offered to customers.
► We assessed the Group’s accounting policies for
commissions (excluding override commissions – see
2. Override commissions below for further detail)
and transaction and service fee revenue, as set out
in Note 2.1 against the requirements of Australian
Accounting Standards.
► We obtained an understanding of the processes
implemented by the Group to record and process
revenue transactions.
► For a sample of revenue transactions recorded during
the year, we obtained supporting evidence such as
customer and supplier contracts, travel documents,
supplier statements and evidence of customer
payment and supplier payment. Based on this
information we evaluated whether revenue had been
recognised in accordance with the Group’s stated
accounting policies.
► We performed analytical procedures over key
components of revenue.
► For a sample of deferred revenue balances
identified in Note 3.4, we evaluated the accuracy
and appropriateness of the classification of
amounts
recognised
where
obligations
to
customers had not been met (such as where travel
had not yet occurred).
► We evaluated the adequacy of the disclosures set
out in Note 2.1 and 3.4.
2. Override commissions
Why significant
How our audit addressed the key audit matter
The Group generates override commissions from
arrangements with airlines, hotels and leisure
suppliers. These override commission rates are often
tiered based on volume of eligible travel. During the
year ended 30 June 2024, the Group recognised
override commission revenue of $122.5m (inclusive of
accrued override commission revenue of $28.3m
which is outstanding as at 30 June 2024) within the
commission revenue balance in Note 2.1.
The override commission revenue process is inherently
judgemental
and
includes
various
assumptions
including:
► Contract periods with airlines, hotels and leisure
suppliers do not correspond to the Group’s financial
year end. Judgement is required to determine
expected future volumes over the remaining
contract term and the tiered commission rates to be
applied in the circumstances.
► Contracts are renegotiated periodically. Updates to
terms and contractual arrangements with the
We evaluated the Group’s judgements in determining
the
override
commission
revenue
recognised
(including accrued override commission revenue).
For override commission revenue that was paid by
suppliers during the period, we:
► Obtained a sample of supplier contracts and
reconciled the eligible travel and commission rates
to override commission revenue calculations.
► Obtained a sample of the most recent supplier
statements and assessed override commission
revenue earned.
► Agreed a sample of override commission revenue to
cash receipts.
For accrued override commission revenue at year end
the testing included:
► Obtained a sample of supplier contracts outlining
the eligible travel and commission rates and
compared to the information used in the accrued
override commission revenue calculations.
119
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Why significant
How our audit addressed the key audit matter
suppliers may result in additional incentives,
rebates or other bonuses being received which may
relate to past performance.
The Group determines accrued override commission
revenue based on estimates of volume of eligible travel
applicable for contract periods with due consideration
of actual sales, forecast bookings and historical trends.
Override Commission was a key audit matter due to the
significance of the override revenue (including accrued
override
commission
revenue)
to
the
total
commissions balance at 30 June 2024 and the
inherent level of judgement involved in the calculation.
► Agreed the underlying travel data used in the
override commission revenue calculations to
independent third-party booking information and
applicable supplier statements (where available).
► Assessed the future estimates of travel data by
evaluating the forecast sales of the third party’s
products compared to historical actual travel data.
► Compared the actual override commission received
in the current financial year relating to the prior
financial year accrual estimation to assess the
accuracy of past estimates.
► We evaluated the adequacy of the disclosures set
out in Note 2.1 (and accrued amounts included in
Note 3.2).
3. Impairment Assessment of non-current assets (including equity accounted investments
Why significant
How our audit addressed the key audit matter
As required by Australian Accounting Standards the
Group annually tests goodwill and intangible assets
with indefinite lives for impairment and tests other
non-current assets where indicators of impairment or
impairment reversals exist using a value in use model
to estimate the recoverable value.
The Group’s financial performance has been gradually
returning to pre-COVID-19 levels. Current business
activity is consistent with external industry forecasts.
Note 4.3 discloses information on goodwill and other
intangible assets recognised by the Group and Note
4.4 discloses information about the impairment
assessment undertaken on non-financial assets as at
30 June 2024. Note 6.1 discloses information on the
Group’s investments accounted for using the equity
method of accounting.
The impairment assessment of non-current assets
(including equity accounted investments) was a key
audit matter due to the value of these assets as a
proportion of total assets and the extent of estimation
and judgement involved in the assessment of forecast
future cashflows and other key assumptions including
terminal
growth
rates,
discount
rates,
Total
Transaction Value (‘TTV’), margin, capital expenditure
forecasts and working capital requirements.
► We assessed the Group’s determination of the cash
generating units (‘CGUs’) used for their impairment
assessment
based
on
the
requirements
of
Australian Accounting Standards.
► We developed an understanding of the process
undertaken by the Group in preparing discounted
cash flow models used to estimate the recoverable
value of CGUs, including how key assumptions
(described in Note 4.4) were derived.
► We assessed the Group’s future cash flow forecasts
used to estimate recoverable value, which included:
► Assessment of the mechanical accuracy of the
cash flow models.
► Assessment as to whether the allocation of
assets (including goodwill) to CGUs was
appropriate based on our knowledge of the
Group’s operations.
► Assessment of the basis of allocating corporate
costs and overheads to CGUs.
► Evaluation of the Group’s forecast recovery path
and expected financial performance over the
forecast
period
using
external
industry
forecasts and internal historical data.
► Involvement of our valuation specialists to
evaluate the key assumptions applied within the
impairment models including terminal growth
rates, discount rates and post COVID-19
recovery profile of the CGUs.
► Assessment of the sensitivity of forecasts to
movements in key assumptions to ascertain the
extent of change in those assumptions that
would either individually or collectively result in
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Why significant
How our audit addressed the key audit matter
an impairment charge at an individual CGU level
(or collection of CGUs, where appropriate).
► We performed market capitalisation and earnings
multiples cross checks in comparison with other
comparable businesses to assess the impairment
testing model outcomes.
•
We evaluated the adequacy of the disclosures
included within Note 4.3, 4.4 and 6.1.
4. Acquisition of Express Travel Group
Why significant
How our audit addressed the key audit matter
On 11 August 2023, the Group acquired 100% of
Express Travel Group (‘ETG’) for consideration of
$68.7m (comprising cash and shares). The allocation
of the purchase price to the acquired assets and
liabilities was finalised during the year. Transaction
costs amounting to $0.96m were recognised in the
consolidated income statement for the year ended 30
June 2024.
Accounting for the transaction was complex, requiring
judgement to identify and assess the fair value of
acquired tangible and intangible assets and liabilities
assumed, including the resulting goodwill balance. As
such, we considered the acquisition of ETG to be a key
audit matter.
Disclosure in relation to the acquisition is included in
Note 6.4 of the consolidated financial report.
► We read the share purchase agreement (the
‘agreement’) to gain an understanding of the key
terms and conditions of this transaction and to
assess
whether
the
appropriate
accounting
treatment had been applied.
► We assessed the appropriateness of the criteria
used to determine the acquisition date.
► We tested the cash consideration paid and shares
issued by obtaining and inspecting supporting
documentation including the agreement, bank
statements and the share issuance documents.
► We checked a sample of the transaction costs
incurred on the acquisition of ETG against third
party invoices and assessed whether the underlying
costs were treated in accordance with the
requirements of Australian Accounting Standards.
► With the involvement of our valuation specialists,
we assessed the:
► identification of acquired tangible and intangible
assets and liabilities assumed.
► valuation
assumptions
and
the
tax
considerations applied by management’s expert
in their determination of the fair value of the
acquired tangible and intangible assets and
liabilities assumed and the resulting amount
recognised as goodwill.
► competence, qualifications and objectivity of
management’s expert.
► We evaluated the adequacy of the disclosures
included within Note 6.4.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2024 annual report but does not include the financial report and
our auditor’s report thereon.
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Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
a) The financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001; and
b) The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
►
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
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►
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
►
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
►
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
►
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2024.
In our opinion, the Remuneration Report of Helloworld Travel Limited for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
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Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
Ernst & Young
Brett Croft
Partner
Melbourne
27 August 2024
ASX ADDITIONAL INFORMATION
Additional information required by ASX and not shown elsewhere in this report is as follows. The information is
current as at 30 July 2024.
(A) DISTRIBUTION OF EQUITY SECURITIES
SHARE RANGE
Number
of holders
Number
of shares
%
1 - 1,000
3,957
1,811,453
1.13
1,001 - 5,000
2,964
7,840,696
4.87
5,001 - 10,000
868
6,638,269
4.12
10,001 - 100,000
819
20,425,164
12.69
100,001 and over
75
124,264,040
77.19
TOTAL
8,683
160,979,622
100.00
All issued ordinary shares carry one vote per share and carry the right to dividends. The number of holders holding a
less than marketable parcel of ordinary shares based on the market price as at 30 July 2024 was 629 holders holding
77,457 shares.
(B) TWENTY LARGEST HOLDER OF QUOTED EQUITY SECURITIES
The names of the 20 largest registered holders of quoted shares are:
ORDINARY SHAREHOLDERS
Number
of shares
%
SINTACK PTY LTD
23,946,957
14.88
J P MORGAN NOMINEES PTY LIMITED
23,085,221
14.34
THE BURNES GROUP PTY LTD
18,358,287
11.40
ANDREW JAMES BURNES
10,495,531
6.52
CINZIA BURNES
10,138,014
6.30
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
8,789,211
5.46
CITICORP NOMINEES PTY LIMITED
8,336,928
5.18
DRAGONHILLS PTY LIMITED
2,735,998
1.70
JOHN ARMOUR
2,100,000
1.30
BNP PARIBAS NOMINEES PTY LTD (HUB24 CUSTODIAL SERV LTD)
1,294,203
0.80
UBS NOMINEES PTY LTD
1,171,817
0.73
BNP PARIBAS NOMINEES PTY LTD (RETAIL CLIENT)
861,096
0.53
WARBONT NOMINEES PTY LTD
706,387
0.44
GHASSAN BEYDOUN
670,126
0.42
BELDISHA PTY LTD
540,538
0.34
TOTARA PTY LTD
479,781
0.30
TRAVCOM INTERNATIONAL GROUP PTY LTD
400,001
0.25
HINTON RIPLEY HOLDINGS
400,000
0.25
BNP PARIBAS NOMS PTY LTD
374,443
0.23
ANDREW SYDNEY JONES & KAREN LISA JONES
325,000
0.20
TOP 20 HOLDERS OF ORDINARY FULLY PAID SHARES
115,209,539
71.57
TOTAL REMAINING HOLDERS BALANCE
45,770,083
28.43
(C) SUBSTANTIAL SHAREHOLDERS
The number of shares held by substantial shareholders and their associates are set out below:
SUBSTANTIAL SHAREHOLDER
Number
of shares
%
THE BURNES GROUP PTY LTD AND ASSOCIATES
38,991,832
24.22
SINTACK PTY LTD
23,946,957
14.88
FIL LIMITED
14,475,534
8.99
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ABN: 60 091 214 998 ASX CODE: HLO
helloworldlimited.com.au