Helloworld Travel (HLO) H1 2025 earnings summary

Executive summary

• TTV for 1H FY25 was $2.1 billion, down 6.9% year-over-year due to lower customer numbers, a shift to mid-haul destinations, and reduced airfares.

• Revenue declined 7.6% to $103.8 million, with a stable revenue margin of 4.9%.

• Underlying EBITDA fell 20.2% to $27.2 million, and net profit after tax dropped 32.4% to $10.8 million.

• EPS fell 29.7% to 7.1 cents, and an interim dividend of 8.0 cents per share, fully franked, was declared, up 60% year-over-year.

• Strong liquidity with $108.8 million in cash, no bank debt, and holdings in ASX-listed CTM shares.

Financial highlights

• Revenue margin held steady at 4.9% despite lower TTV and revenue.

• Interest income rose 17% due to ongoing cash management.

• Employee costs increased 8.7% reflecting salary increments and staffing adjustments.

• Equity accounted profits grew 13.6% year-over-year.

• Cash balance at 31 Dec 2024: $108.8 million (down from $161.9 million at June 2024).

Outlook and guidance

• Full year underlying EBITDA forecasted between $56 million and $62 million.

• Strong forward bookings for calendar 2025.

• Continued investment in agent networks, technology, and potential acquisitions.

• Focus on leveraging AI and automation for productivity and efficiency.

• Management is focused on right-sizing staffing for future growth and maintaining cost discipline.