WWPKG 2017/2018 annual loss decreased by 87.3%

The Group will continue to boost marketing efforts, optimise its online sales platform, develop and launch new itineraries and products to bring better travel experience



FINANCIAL HIGHLIGHTS

 

Year ended 31 March

2018

2017

HK$’000

(audited)

(audited)

Revenue

421,105

390,820

Sales of package tours

413,932

382,054

Margin income from sales of FIT products

1,472

2,768

Margin income from sales of ancillary travel related products and services

5,701

5,998

Gross Profit

60,024

59,493

Loss attributable to owners of the Company

1,757

14,232

Basic and diluted loss per share (HK cents)

0.44

4.42


HONG KONG, CHINA – Media OutReach – June 11, 2018 – WWPKG Holdings Company Limited (“WWPKG”, together with its subsidiaries, the “Group”; stock code: 8069), a leading travel agent in Hong Kong, announced its annual results for the year ended 31 March 2018.

 

For the year ended 31 March 2018, the Group recorded total revenue of approximately HK$421.1 million, representing an increase of 7.8% as compared to the prior year, which was mainly due to the increase in revenue from package tours led by the increase in the number of tour participants. The Group’s loss attributable to owners of the Company decreased by 87.3%, mainly due to the decrease in selling and administrative expenses (including the non-recurring Listing expenses of approximately HK$15.0 million) totalling approximately HK$12.4 million. Selling expenses decreased by 7.0% to approximately HK$18.5 million and administrative expenses decreased by 20.0% to approximately HK$43.9 million respectively, for the year ended 31 March 2018.

 

BUSINESS REVIEW

During the year ended 31 March 2018, much efforts were spent to uphold the Group’s market share in the travel service industry as well as to promote its brand recognition and awareness:

 

— The Group engaged with one of its major airline suppliers on a new exclusive flight route, whereby charter flights destined for Kumamoto in Japan had been launched on a bi-weekly basis since 16 November 2017. It also marked a close collaboration with the Kumamoto prefectural government when the Group received appreciation for playing a vital role in the recovery of Kumamoto’s tourism after the Earthquake in April 2016. Over eight new kinds of package tours via this exclusive flight route were launched, which received great reviews.

— A number of major enhancements to the Group’s online sales platform, in particular the FIT-air tickets module, the FIT-hotel accommodations module and the ancillary travel related products and services (當地享樂) module, were deployed and subsequently completed in April 2018. Together with the package tours module, the Group’s website has now become a one-stop shop that was able to satisfy most of the travel needs of customers.

— The Group kept a keen focus on effective marketing. Following the success of the two series of television travel programme, titled “Kansai Raider I” and “Kansai Raider II”, sponsored by the Group in 2016, its spokesperson hosted another series of television travel programme, titled “Kyushu Raider”, in October 2017 that once again became highly rated. The Group continued to engage in an effective digital marketing campaign to promote its brand and travel products through various online social media and search engines to reach out to wider spectrum of potential customers.

 

OUTLOOK

 

With its long-established brand name, well-maintained business relationship with suppliers, ability to respond to adversities, and healthy net assets position, the Group will continue to put forth its best efforts to drive business performance and growth by:

 

— boosting its marketing efforts (i) on digital marketing, including advertising on social media and search engine marketing, so as to increase online channel presence and online traffic and drive online inquiry to the Group’s product offerings; and (ii) through collaboration with its spokesperson to raise the awareness of the Group’s brand and enhance the popularity of its products through travel television programmes, social media and other conventional media advertisements such as newspapers and television commercials;

— continuing to (i) evaluate and optimise the Group’s online sales platform to improve user experience; (ii) revamp the CRM system to boost customer loyalty; and (iii) consider the development of a mobile application;

— introducing new routes (including collaboration with airline suppliers to develop charter flights and/or charter routes), itineraries, activities and hotel accommodations from time to time in order to offer new and/or better travel experience to its customers; and

— exploring investment opportunities including those that could create operating synergies.


About WWPKG Holdings Company Limited

WWPKG is founded in June 1979. The Group is one of the long-established and well-known local travel agents, with 39 years of business in the travel service industry in Hong Kong under the brand “縱橫遊“. Its major business includes the provision of outbound package tours with particular focus on Japan bound tours. The Group also offers other travel products and services to customers including free independent traveller (FIT) products and other ancillary travel related products and services.


Currently, the Group sells products and services through a number of channels including four branches in Causeway Bay, Tsim Sha Tsui, Mongkok and Shatin, as well as online sales platform. The Group also sells tailor made tours to customers through MICE tour department, as well as sells travel products to other travel agents in Hong Kong and Macau.