How Did Helloworld Travel Boost Profit Amid Revenue Declines in FY25?

• Net profit after tax up 4.1% to $33.2 million in FY25
• Total Transactional Value down 8.6% to $3.8 billion
• Completed full acquisition of Mobile Travel Agents for $36 million
• Launched new luxury and cruise brands, including VIVA Gold and Signature Collection
• FY26 underlying EBITDA guidance set between $64 million and $72 million

Solid Profit Growth Despite Revenue Pressure

Helloworld Travel Limited has delivered a resilient financial performance in FY25, with net profit after tax rising 4.1% to $33.2 million. This growth comes despite an 8.7% decline in revenue to $192.8 million and an 8.6% drop in Total Transactional Value (TTV) to $3.8 billion, reflecting challenging economic conditions in Australia and New Zealand. The company’s revenue margin improved slightly to 4.9%, underscoring operational efficiency amid a tougher market.

Strategic Acquisition Strengthens Market Position

A key highlight of the year was Helloworld’s completion of the full acquisition of Mobile Travel Agents (MTA), a Gold Coast-based mobile travel agency. The $36 million purchase lifts Helloworld’s total investment in MTA to approximately $50 million. This move is expected to add around $440 million annually to the company’s TTV, expanding its footprint in the retail leisure and SME corporate travel sectors with a network of 450 home-based advisors.

Expanding Retail Networks and Award-Winning Brands

Helloworld’s retail networks remain a cornerstone of its business, boasting over 10,000 travel professionals across Australia and New Zealand. The company achieved a 96% re-sign rate among its branded and associate networks and continued to grow through new store openings and multi-store expansions. The Helloworld Travel Academy has also become a vital talent pipeline, delivering over 12,000 training sessions since 2022.

On the wholesale front, the launch of the luxury brand VIVA Gold and the Signature Collection by Cruiseco cruise brand have bolstered product offerings. Cruise bookings surged 27% year-on-year, while wholesale brands VIVA Holidays and GO Holidays posted double-digit growth. Notably, travel to the USA defied broader market trends with land volumes more than doubling.

Technology and Marketing Investments Drive Future Growth

Helloworld continues to invest heavily in technology, having spent over $95 million in the past eight years to develop proprietary platforms like Resworld and the Helloworld Trips app. These tools enhance operational efficiency and customer experience, with ongoing enhancements planned to streamline workflows and support scalable growth. Marketing efforts remain robust, including major media campaigns and the successful airing of the 'Helloworld' TV show on the Nine Network, reinforcing brand visibility and driving qualified leads.

Confident Outlook for FY26

Looking ahead, Helloworld is optimistic about sustainable growth, supported by strong forward bookings and a focus on cost control. The company plans to open 15 new stores in FY26 and continues to prioritize agency succession planning and technological innovation, including automation and artificial intelligence. Underlying EBITDA guidance for FY26 is set between $64 million and $72 million, reflecting confidence in market conditions and strategic initiatives.

Bottom Line?

Helloworld’s strategic acquisitions and technology investments position it well for growth, but economic headwinds and evolving travel trends will test its agility in FY26.

Questions in the middle?

• How will Helloworld integrate and scale Mobile Travel Agents to maximize synergies?
• What impact will ongoing economic challenges have on agency closures and airfares in FY26?
• How effectively can technology and AI investments translate into market share gains?