Helloworld Travel Limited (HLO) has released its interim financial results for the first half of FY25, reporting a Total Transactional Value (TTV) of $2.1 billion, down $152 million, or 6.9%, from the previous year.
The decrease was attributed to lower customer numbers, a shift from high-spending long-haul travel to mid-haul destinations such as Japan, Bali, Thailand and Fiji, and lower airfares.
Revenue also dropped 7.6% to $103.8 million, while underlying EBITDA fell 20.2% to $27.2 million.
Net profit after tax fell 32.4% to $10.8 million, the result of challenging economic conditions and changing travel patterns, according to HLO.
Despite these declines, Helloworld maintained its revenue margin at 4.9% and increased interest income by 17% through strong cash management.
Among its retail sector highlights, the company issued 1,738,000 HLO shares to agents via its Loyalty Shares Program and saw positive feedback on its “Helloworld” TV show. The Helloworld Travel Academy also continued to grow, registering over 10,000 participants.
In wholesale, HLO flagged strong demand for mid-haul destinations, the launch of the company’s new luxury brand, Viva Gold, and Viva Holidays’ second straight win for Most Outstanding Wholesaler at the National Travel Industry Awards (NTIA).
Meanwhile, cruise bookings remained strong, particularly in the luxury and expedition sectors, while in inbound travel, HLO highlighted strong growth in the North American market.
During H1, Helloworld also launched My Way Travel & Events, offering ticketing packages for sporting and live events.
Elsewhere, the travel giant continued to invest heavily in marketing, wholesale expansion and technology, with its Resworld retail mid-office solution and advancements such as SmartNDC and SmartRefunds leading the way in air ticketing solutions.
Looking forward, management will continue to focus on long-term value creation, investing in agent networks, acquisitions, AI and infrastructure.
The company forecasts a full-year Underlying EBITDA of $56 million to $62 million and reports strong forward bookings for 2025.
“Our performance across the first half reflects a challenging fiscal environment in Australia with cost of living increases impacting demand for leisure travel and reductions in airfares pushing flight TTV downwards across the period,” Helloworld Travel Group CEO Andrew Burnes AO said.
“However, we have continued to invest in our business, growing our technology options and expanding our wholesale product range while enhancing our core capabilities around ticketing and air consolidation.
“Despite the short-term challenges, we will continue to leverage our industry knowledge and drive long-term shareholder value across the period ahead.
“We are pleased to be delivering a strong result for the first half and a strong dividend to our shareholders at 8 cents per share fully franked.
“Across Helloworld’s agency and broker networks there are over 10,000 travel advisors, the biggest group of travel professionals in Australia and New Zealand.
“Looking ahead we are seeing strong forward bookings over the remainder of 2025. The business has balance sheet strength, no external bank borrowings and strong liquidity that positions the company for long term sustainable growth.”
1H FY2025 results:
- Total Transactional Value (TTV) down 6.9% to $2.1 billion
- Revenue down 7.6% to $103.8 million
- Underlying EBITDA down 20.2% to $27.2 million
- Net profit after tax down 32.4% to $10.8 million
In December, Helloworld Travel’s 2024 Frontliners Forum successfully concluded, bringing over 500 travel agents and supplier partners from Australia and New Zealand to Singapore for four days of networking, learning and, of course, a lot of little fun.
