Helloworld Travel (HLO) H2 2024 earnings summary

Executive summary

• Total Transaction Value (TTV) rose 62.5% year-over-year to $4.2 billion, driven by organic growth and the acquisition of Express Travel Group (ETG).

• Underlying EBITDA reached $67.5 million, up 52.9% year-over-year, with margin improving to 30.0% from 26.6%.

• Net profit after tax climbed 60.2% to $30.7 million, and basic EPS grew 54.8% to 19.2 cents.

• All geographic segments, including Australia, New Zealand, and Fiji, were profitable, with strong EBITDA growth in Australia and New Zealand.

• Over 2,700 agencies and brokers in Australia and New Zealand, with more than 10,000 travel advisors across the network.

Financial highlights

• Revenue increased 37.5% to $228.2 million, with all segments profitable.

• Operating cash flow for the year was $63.5 million, with strong cash generation in the second half.

• Cash balance at year-end was $161.9 million, with no bank debt.

• Final dividend declared at 6.0 cents per share, bringing full-year dividend to 11.0 cents per share (4.9% yield).

• Equity accounted profit rose 145.2% to $4.9 million, reflecting strong results from MTA and Phil Hoffmann Travel.

Outlook and guidance

• Travel volumes in and out of Australia are at 90-100% of FY19 levels; New Zealand at 85-95%.

• Guidance for FY 2025 will be provided after the September quarter, due to geopolitical uncertainties.

• Positive outlook supported by a diversified business model, focus on profitable TTV growth, and cost control.

• Continued investment planned in workforce, technology, and infrastructure to meet demand.