Helloworld Travel Limited has posted a solid first-half result, with underlying earnings up double digits and forward air sales pointing to a strong finish to FY26 despite softer fare environments and patchy conditions in New Zealand.
“Helloworld Travel Limited delivered a solid performance in the first half, underpinned by continued investment in the business,” CEO Andrew Burnes AO said.
“We progressed the expansion of our retail networks, our technology offering and wholesale product range, while further strengthening our core capabilities in air ticketing and consolidation.
“We are pleased to report a strong first‑half result and the declaration of a fully franked dividend of 5.0 cents per share. Across Helloworld’s agency and broker networks, we have 10,000+ travel professionals and 2,600 agencies and brokers. Looking ahead, forward bookings remain strong throughout the remainder of FY26 and well into FY27.”
Overview of results
The travel group reported total transaction value (TTV) of $2.1 billion for the half year to 31 December 2025, up $36 million or 1.8 per cent on the prior corresponding period (pcp).
In the investor call, Andrew Burned said that the TTV was impacted by a drop in international and domestic air fares. Average international airfares in Australia and New Zealand were circa 8 per cent and 4 per cent lower in 1HFY26, while domestic airfares fell circa 1 per cent and 9 per cent, both of which help drive further travel demand
Looking ahead, the pipeline appears strong. Forward air sales scheduled to depart in the second half of FY26 are up 14 per cent in Australia and nine per cent in New Zealand compared to the same time last year, providing positive momentum into the remainder of the financial year.
Cruise performance held firm despite capacity challenges. With several ships relocating their home ports outside Australia and New Zealand, domestic cruise capacity was lower; however, Cruise TTV in Australia was consistent with the prior period and slightly higher in New Zealand.
Land sales – including accommodation, car hire and other non-air ancillaries – recorded higher TTV across both markets, reflecting sustained demand for packaged and add-on products.
Margin expansion drives earnings growth
The group’s overall revenue margin for the half was 5.1 per cent, up 10.9 per cent, underpinning a lift in profitability.
Underlying EBITDA rose 12.1 per cent to $30.5 million, compared to $27.2 million previously. The underlying EBITDA margin increased 1.8 percentage points to 28.0 per cent.
Equity accounted profits were $1.7 million, down from $2.0 million in the pcp, reflecting MTA ceasing to be equity accounted from 21 October 2025 after Helloworld acquired the remaining 50 per cent. From that date, MTA has been fully consolidated into the group’s results.
During the half, Helloworld recognised a $1.4 million fair value loss through profit and loss on the revaluation of its investment in Webjet Group Limited, alongside a $20.3 million fair value gain on remeasurement of its existing 50 per cent interest in MTA prior to full acquisition.
Net profit before income tax from continuing operations came in at $36.7 million, up from $22.7 million in the pcp. Net profit after income tax from continuing operations rose to $31.1 million, compared to $15.8 million a year earlier.
Earnings per share and dividends
Basic and diluted earnings per share from continuing operations for the half year were 19.0 cents, almost double the 9.7 cents recorded.
Shareholders received a fully franked final dividend of 6.0 cents per share for FY25, paid on 16 September 2025. On 25 February 2026, the board declared a fully franked interim dividend of 5.0 cents per share for the half year ended 31 December 2025, payable on 17 March 2026.
Balance sheet and funding
At 31 December 2025, the group held cash of $67.7 million, down from $79.4 million at 30 June 2025 and $108.8 million at 31 December 2024. The reduction reflects supplier payment timing, higher tax payments in 1HFY26 due to limited FY25 instalments paid in the prior half, dividend payments, additional investment in Webjet shares and recent acquisitions.
External bank borrowings stood at $35.0 million at period end, compared to nil at both 30 June 2025 and 31 December 2024, following the drawdown of a $35 million debt facility with Citibank to fund the acquisitions of MTA and Gilpin Corporate Travel. Bank guarantees totalled $9.8 million, up from $3.1 million at 30 June 2025, reflecting standby letters of credit provided by Citibank to Westpac as security for various facilities.
With forward bookings trending strongly and margins expanding, Helloworld enters the second half of FY26 with improving earnings momentum, even as fare pressures and economic headwinds continue to shape trading conditions across the region.
Comments on Webjet Group
In the investor call, Burnes addressed Helloworld’s recent attempt to buy Webjet Group. He said that he is not going to address the firm’s acquisition strategy publicly but did add that he thinks Webjet is a “good business” and a “good brand”, adding that they are “very happy” to be major shareholders.
He said they are not looking to sell their shares at this time.
