Helloworld Travel (HLO) H2 2025 earnings summary

Executive summary

• Total transaction value (TTV) for the year was $3.8 billion, down 8.6% year-over-year due to lower premium and general airfares, agency closures, and a shift to shorter-haul destinations.

• Underlying EBITDA was $60.6 million, down 8.6%, but profit after tax rose 4.1% to $33.2 million, with EPS up to 20.4 cents.

• Fully franked total dividend of $0.14 per share declared, up 3% year-over-year.

• Balance sheet remains strong with $79.4 million in cash and no external bank debt at year-end.

• Continued investment in technology, product range, and operational efficiencies, with over $95 million invested in the last eight years.

Financial highlights

• Total revenue was $192.8 million, down 8.7% year-over-year, matching the decline in TTV.

• Underlying EBITDA margin was 31.4%, slightly down from 31.9% but above the 30% target.

• Earnings per share increased 3% to 20.4 cents.

• Operating costs and total expenditure reduced by 8.5%-8.6%, supporting profitability.

• Fair value gain of $5.0 million on Webjet Group shares recognized.

Outlook and guidance

• Forward air bookings for FY 2026 are up 11% compared to the same time last year.

• FY 2026 is expected to outperform FY 2025, with guidance to be released by late September or early October 2025.

• Continued investment in people, technology, and marketing to drive growth and maintain market visibility.

• 15-16 new retail stores planned for FY26, with ongoing agency succession planning.

• Strong growth anticipated in wholesale and ReadyRooms segments, with double-digit increases in land and cruise sales already on the books for future travel.