Helloworld Travel Surges with 12% EBITDA Growth and Strong Forward Bookings

Solid Financial Performance Amid Market Challenges

Helloworld Travel Limited (ASX: HLO) has delivered a solid first half for FY26, reporting a total transaction value (TTV) of $2.1 billion, a modest 1.8% increase over the prior corresponding period. Despite a challenging environment marked by declining airfares in Australia and New Zealand, the company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12.1% to $30.5 million, reflecting effective cost management and strategic growth initiatives.

Profit after tax more than doubled to $30.6 million, driven by strong operational performance and significant fair value gains, notably a $20.3 million revaluation gain on its 50% stake in Mobile Travel Agents (MTA), now fully consolidated following acquisition. This robust profit growth underscores Helloworld’s ability to capitalise on market opportunities despite competitive pressures.

Strategic Acquisitions and Network Expansion

The company’s growth story is bolstered by multiple strategic acquisitions during the half, including the full acquisition of MTA and Gilpin Corporate Travel, funded partly through a $35 million debt facility. These acquisitions have been earnings accretive and are well integrated, expanding Helloworld’s footprint across retail and corporate travel sectors.

Helloworld’s extensive network now includes over 2,600 agencies and brokers, supported by more than 10,000 travel professionals across Australia and New Zealand. The company continues to invest in technology, with its proprietary air ticketing systems and retail mid-office solution, Resworld, enhancing agent efficiency and customer experience.

Market Dynamics and Forward Outlook

Lower airfares, down around 8% internationally and 1-9% domestically, have stimulated travel demand, reflected in strong forward bookings that are up 14% in Australia and 9% in New Zealand for the second half of FY26. Leisure travel remains buoyant, supported by high discretionary spending among key demographics and growing inbound tourism, particularly from the UK and Europe.

Wholesale travel services also showed impressive growth, with TTV up 23% in Australia and 19% in New Zealand, driven by popular destinations such as the USA, Italy, Fiji, and the Cook Islands. The cruise segment continues to thrive, especially in the luxury category, with a 17% increase over the prior period.

Dividend and Guidance

Reflecting confidence in its financial position, Helloworld declared a fully franked interim dividend of 5.0 cents per share, payable on 17 March 2026. While this represents a reduction from the previous interim dividend, it aligns with the company’s focus on balancing shareholder returns with ongoing investment and debt management.

Helloworld reaffirmed its full-year underlying EBITDA guidance of $64-$72 million, excluding fair value fluctuations on its Webjet Group shareholding. The company’s strong start to the second half, with January TTV up 11.6%, suggests it is well positioned to meet these targets.