The Helloworld (ASX:HLO) share price is up 36% in a month. Here's why

Shares in the travel agency group are flying higher as the reopening of international borders looms…

| More on:
a family of parents with two children ride an airport trolley with luggage and tourist trappings such as field glasses with excited expressions on their faces.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Helloworld Travel Ltd (ASX: HLO) share price has been flying under the radar.

In the past month, shares in the travel agency group have surged more than 36%. At the time of writing, they are trading 1.4% higher for the day at $2.18.

Let's take a look at what's been fuelling the Helloworld share price.

Helloworld share price propelled by travel hopes

Along with the broader travel sector, shares in Helloworld are flying higher on renewed hopes of travel in the near future.

Despite the Delta variant of COVID-19 causing major domestic and international travel disruptions, investors have been looking towards a vaccinated future.

As a result, investors have flocked to travel shares as the resumption of domestic and international travel looms. This has helped to push up the Helloworld share price.

The effects of border closures and travel restrictions were recently reflected in the company's full-year report for FY21.

How did Helloworld perform in FY21?

Late last month, Helloworld released preliminary un-audited results for the year ended 30 June 2021.

This was followed by the company's annual report, released earlier this week.

For FY21, Helloworld reported a statutory after-tax loss of nearly $36 million.

The travel agency group revealed it had lost 272 agencies over the past 15 months as lockdowns took their toll on the company.

Highlights from the company's full-year report included;

  • Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of $14.1 million. This was at the low end of the range indicated in the Quarter 3 trading update ($14 million to $16 million).
  • FY21 underlying loss before tax of $37.8 million after one-off costs of $11.7 million.
  • $131.0 million cash balance at 30 June 2021.

Helloworld's total transaction values (TTV) tanked 78.4% for the financial year to $1.08 billion.

The Helloworld share price jumped on the back of the result and has been climbing ever since.

The company was unable to provide guidance for FY22, due to the uncertainty around the lifting of border restrictions and travel bans.

However, the travel agency did note that strong demand for travel during periods of open travel reflected pent-up consumer demand.

As a result, Helloworld noted the company was focusing on vaccine rollouts to determine the re-opening of domestic and international borders.

Snapshot of the Helloworld share price

The Helloworld share price has reflected the company's challenging trading conditions in 2021.  

Despite shares in the travel agency rallying in the past month, they remain around 13% lower since the start of the year. However, they have gained around 18% in the past 12 months.

Should you invest $1,000 in Resapp Health right now?

Before you buy Resapp Health shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Resapp Health wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was the ASX's fourth day of gains for the week today.

Read more »

a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.
Share Gainers

Why Cedar Woods, Healius, NextDC, and Platinum shares are charging higher today

These shares are rising on Thursday. But why are investors buying them? Let's find out.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Share Gainers

These were the best-performing ASX 200 shares in April

These shares were in fine form in April. Let's see why they outperformed.

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX made it three from three.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Cedar Woods, Orthocell, PEXA, and St Barbara shares are storming higher today

These shares are having a good session on hump day. But why?

Read more »