Helloworld posts 20% plummet in 1H25 earnings as mid-haul travel takes over

Helloworld Travel has posted a 20 per cent drop in its 1H25 earnings (EBITDA) and a total transaction value of $2.1 billion, a 6.9 per cent drop from the year previous.

The group noted a shift from long-haul to mid-haul destinations like Japan, Bali, Thailand and Fiji, lower customer numbers and reduced airfares as key impacts.

“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 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.”

Key financial results

• Total Transaction Value (TTV) declined 6.9 per cent year-on-year to $2.1 billion.
• Revenue fell by 7.6 per cent to $103.8 million, maintaining a revenue margin of 4.9 per cent.
• Underlying EBITDA decreased by 20.2 per cent to $27.2 million, with an EBITDA margin of 26.2 per cent.
• Net profit after tax dropped 32.4 per cent to $10.8 million.
• Earnings per share fell 29.7 per cent to 7.1 cents.
• Despite the downturn, Helloworld announced an interim dividend of 8.0 cents per share, up 60 per cent from the previous period.
• The company maintains a strong liquidity position with significant cash reserves and no external bank debt.

In response to evolving market conditions, Helloworld Travel is divesting its non-core Entertainment Logistix business. The company also declared an 8.0 cent per share fully franked interim dividend, set for payment on 26 March 2025.

Helloworld Travel operates across Australia, New Zealand, and Fiji, with a robust retail and wholesale network, including major brands such as Helloworld Travel, Magellan Travel, and GO Holidays. Despite the challenges, the company remains committed to long-term growth and operational efficiency.