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, and a shift to shorter-haul destinations, but with strong forward bookings into FY26 and a focus on long-term growth.

• Underlying EBITDA was $60.6 million, down 8.6%, but EBITDA from continuing operations rose 0.6% and profit after tax increased 4.1% to $33.2 million.

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

• Strong renewal rates in franchise networks: 98% in New Zealand and 96% in Australia.

• Balance sheet remains strong with $79.4 million in cash and $55.6 million in ASX-listed investments.

Financial highlights

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

• Operating costs reduced by 8.6%, in line with revenue and TTV declines.

• Earnings per share increased 3% to $0.204 per share.

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

• Net operating cash outflow due to timing of BSP payments and higher tax payments; investments in Webjet Group and Barlow Travel Group totaled $59.2 million.

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.

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

• 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.