Helloworld Travel Posts 4.1% Profit Rise with $33.2 Million After Tax in FY25
Helloworld Travel reported a 4.1% rise in profit after tax for FY25 despite an 8.7% revenue decline, driven by strong growth in Wholesale and Inbound segments and strategic investments in technology and acquisitions.
- Profit after tax increased to $33.2 million, up 4.1%
- Revenue declined 8.7% to $192.8 million amid challenging market conditions
- Total Transaction Value fell 8.6% to $3.8 billion
- Acquisition of Barlow Travel Group expanded corporate travel footprint
- Strong forward bookings and 15 new retail stores planned for FY26
Financial Performance Overview
Helloworld Travel Limited (ASX, HLO) has delivered a mixed but resilient set of results for the financial year ended 30 June 2025. The company reported a 4.1% increase in profit after income tax to $33.2 million, alongside a modest rise in earnings per share to 20.4 cents. This profit growth came despite an 8.7% decline in revenue to $192.8 million and an 8.6% drop in Total Transaction Value (TTV) to $3.8 billion, reflecting the challenging economic conditions in Australia and New Zealand.
Underlying EBITDA decreased by 8.6% to $60.6 million, with the margin slightly contracting to 31.4%. The company’s disciplined cost control efforts helped offset the revenue pressures, while a notable $5 million fair value gain on its Webjet Group shareholding provided additional financial support.
Segment Performance and Strategic Moves
Helloworld’s Wholesale and Inbound travel businesses showed strong growth, buoyed by increased demand for high-end accommodation and experiences, particularly in the USA where land volumes more than doubled year-on-year. Conversely, the agency and ticketing segments faced headwinds from agency closures, a shift toward short and mid-haul travel, and declining average airfares.
In a strategic expansion, Helloworld acquired 100% of Barlow Travel Group Limited in April 2025, enhancing its corporate and events travel capabilities in New Zealand. Meanwhile, the company divested its Entertainment Logistix business, streamlining its portfolio to focus on core competencies.
Innovation and Growth Initiatives
Investment in technology remains a cornerstone of Helloworld’s strategy. The company advanced its digital platforms, including AI-driven solutions and enhancements to its ticketing and hotel booking systems, which saw ReadyRooms usage and sales more than double year-on-year. These innovations aim to improve agent efficiency and customer experience, positioning Helloworld for future growth.
Retail expansion is also on the horizon, with 15 new stores planned for FY26, supported by strong re-sign rates across its agency networks and a growing travel academy that has attracted over 12,000 attendees since 2022.
Outlook and Market Position
Looking ahead, Helloworld is optimistic, citing strong forward bookings into late 2025 and 2026, with air bookings for FY26 departures up 11%. The company’s robust balance sheet; with no external bank debt and significant cash reserves; provides a solid foundation for sustained growth. Marketing and brand awareness campaigns are set to continue, alongside ongoing investments in automation and AI to maintain competitive advantage.
Bottom Line?
Helloworld’s FY25 results underscore resilience amid market challenges, setting the stage for growth fueled by technology and strategic acquisitions.
Questions in the middle?
- How will the integration of Barlow Travel Group impact Helloworld’s corporate travel market share?
- Can ongoing technology investments translate into improved margins amid competitive pressures?
- What guidance will the company provide ahead of its October 2025 Annual General Meeting?