The Helloworld Travel Ltd (ASX: HLO) share price is in negative territory today following the release of a trading update. During mid-morning trade, the travel booking company's shares are fetching for $2.03, down 1.9%.
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Q3 FY21 Trading update
Helloworld shares are backtracking today as investors digest the company's latest financial results.
For the quarter ending 31 March 2021, Helloworld reported an ongoing recovery of its key operational metrics.
Total Transaction Value (TTV) stood at $261.5 million. This reflected an increase on the two previous quarters, but still a long way off from Q3 FY20 – down 79.6%. Helloworld stated that January and February lockdowns impacted TTV performance. Notably, the month of March recorded the highest TTV for the financial year, at $112.5 million.
Revenue for the March quarter totalled $15 million. This is similar to what was achieved in Q1 and Q2 of FY21, $13.1 million and $16.5 million, respectively. Compared to the corresponding period, however, revenue declined 75.8%.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) also came at a loss of $4.4 million for Q3 FY21. This is in line with Helloworld's previous forecasts announced to shareholders earlier in the year. Year-to-date EBITDA is currently running at a loss of $10.9 million.
The company declared a healthy cash balance of $125.9 million, with total free cash of $75 million. External borrowings totalled $81 million with available headroom on its debt facilities of $30.2 million.
Outlook
With the easing of restrictions and state borders open in Australia, Helloworld is expecting TTV to continue to improve. In addition, the opening of the trans-Tasman bubble could provide a boost in retail, corporate, ticketing and wholesale business divisions.
Provided there are no significant COVID-19 impacts, Helloworld is projecting to reach annualised TTV of $1 billion in 2021. Underlying EBITA is expected to incur a loss of around $14 million to $16 million for FY21.
About the Helloworld share price
Over the last 12 months, the Helloworld share price has gone on a rollercoaster ride. The company's shares are up over 50% from this time last year, but down almost 20% year-to-date.
On valuation metrics, Helloworld has a market capitalisation of roughly $314 million, with 155 million shares on issue.
