In an aftermarket statement on Monday afternoon, Helloworld Travel Ltd (ASX: HLO) announced that it has completed the sale of its Insider Journeys business.
What did Helloworld announce?
Helloworld announced it has completed the sale of its Insider Journeys business to destination management business Eight at Work Holding Pty Ltd. The transaction was completed on the 30 June 2019. Helloworld noted that neither the purchase price nor business was material to Helloworld's results.
According to Helloworld, the decision to sell Insider Journeys was due to the business not being core to Helloworld's future strategy. Insider Journeys (formally Travel Indochina) specialises in small group journeys and tailor-made holidays to Indochina. The business is designed to provide travellers with genuine experiences in culture, food and people and is highly regarded – winning Best Specialist Wholesaler at the Australian National Travel Industry Awards in 2015.
Following the announcement, the Helloworld share price has remained flat at the open of Tuesday morning trade.
How has Helloworld performed this year?
The Helloworld share price is down around 18% in 2019 following a soft half-year report in February. Results for the half year came relatively in line with expectations with Helloworld growing its total transaction value (TTV) by 6.1% to $3.152 million, increasing revenue by 7.7% to $182.2 million and increasing net profit after tax by 5.4% to $21.9 million. Profits grew slower than revenue as a result of an 8.4% increase in operating costs of $141.2 million.
The key drivers of TTV and revenue growth where attributed to key acquisitions from the second half of 2018, which included Magellan Travel group, Flight Systems Group and Asia Escape Holidays.
Late last month Helloworld announced that its wholly owned subsidiary QBT would continue as the Australian Government's travel service provider until June 2021, extending a four-year deal signed in July 2015. The company came under scrutiny earlier this year regarding its government contracts as former federal treasurer Joe Hockey remains one of the top 20 shareholders in Helloworld.
