Helloworld Travel (ASX:HLO) executives used the company’s first-half FY26 earnings call to highlight margin expansion, contributions from recent acquisitions, and a reaffirmed full-year earnings outlook, while also addressing airfare trends, New Zealand conditions, and the group’s approach to its large stake in Webjet.
First-half performance: margin expansion and steady TTV amid falling fares
Chief Executive Officer Andrew Burnes said the first half of FY26 was “positive,” calling out an improvement in margin to 5.1% from 4.6%, which he attributed primarily to “better commercials,” particularly with airline partners, as well as improved arrangements across land and other product categories.
Burnes also pointed to the company’s stated target of reaching a 30% EBITDA margin over time, noting the first-half underlying EBITDA margin was 28% and suggesting the company would seek further improvement in the second half.
Acquisitions and network scale remain a key theme
Burnes said acquisitions completed through calendar 2025 were performing well, “in many instances, above expectations.” He highlighted the purchase of the remaining 50% of Mobile Travel Agents (MTA)—described as a network of 450 home-based brokers—for just over $36 million, saying the business was “going extremely well.”
He also referenced ETG, acquired a couple of years ago for $70 million, saying it continued to record profitability and TTV ahead of expectations, while noting ETG carries a lower margin due to a heavier skew toward air.
Other investments and acquisitions referenced on the call included:
- Equity investments in Brighton Travelworld and Phil Hoffmann Travel
- 100% ownership of Gilpin and Barlow, which management said were performing well
- An increase in the company’s interest in Hunter Travel Group from 12% to 16%, described as the largest franchisee member of the Helloworld network with 175 people across 35 locations
Responding to a question about scale benefits beyond adding TTV, Burnes said businesses in which Helloworld has invested tend to “lean far more heavily into our wholesale range,” which he emphasized contributes higher margin than air.
Wholesale and inbound: higher-margin segments cited as important contributors
Management underscored the importance of wholesale and inbound operations to group profitability, describing them as higher margin than air. Burnes cited wholesale TTV growth of 23% in Australia and 19% in New Zealand, and said inbound posted significant gains with “good growth” from the UK, Italy, and Germany.
On the wholesale side, Burnes discussed ReadyRooms—described as a hotel booking engine now including transfers and tours—and said it was “going from strength to strength.” He also described the Athens-based technology team associated with the Excite Holidays acquisition and said the company would expect TTV from that business alone to be “north of AUD 100 million” this year, with a larger contribution anticipated in FY27 if current growth continues.
For inbound, Burnes said the business remained a strong contributor and described it as the highest-margin area across the company. He added that Helloworld also operates inbound in Fiji and runs a transport business there.
Air consolidation: ticket volumes up, fares down; broad airline partnerships
While air remains a major part of the business, management emphasized that the blended margin reflects product mix. The company reported that the number of tickets issued in the first half increased 10%, but average fares declined. Burnes provided additional details later in the call, noting international fares fell 8% in Australia and 4% in New Zealand, while domestic fares fell 1% in Australia and 9% in New Zealand.
Helloworld said it has commercial arrangements with 154 airlines. Burnes identified the top five carriers as Emirates, Qantas, Singapore Airlines, Cathay Pacific, and Virgin. He also said 98% of tickets are issued through automated systems, with ticket changes and refunds “largely automated,” which he characterized as driving efficiencies.
Outlook, Webjet stake, and other topics raised in Q&A
Burnes reaffirmed underlying EBITDA guidance of $64 million to $72 million, first provided at the company’s October AGM. He said January TTV was up 11.6% and described forward bookings as “very strong,” adding the company would aim for the upper end of the range “if we can.” CFO Mike Smith said the company expected the second half to be better than the first half and indicated the midpoint of the guidance range was “kind of… where it will likely land,” based on early second-half trends.
Management also noted that guidance excludes any P&L impact from remeasurement of Helloworld’s investment in Webjet. In response to questions about the stake, Burnes said the company held about 17.3% of Webjet and was its largest shareholder, but declined to detail strategy. He said Helloworld was not looking to sell its holding and did not expect to participate in Webjet’s planned share buyback, absent a change in strategy.
Other Q&A highlights included:
- Booking mix and margins: Burnes said forward bookings were not materially different from prior periods, with some skew toward the UK/Europe, while New Zealand and Bali continued to sell well. He said management was confident margins would not revert to 4.6% in FY26.
- New Zealand and Fiji: Burnes attributed New Zealand softness to economic conditions, noting early “green shoots” of recovery. COO Cinzia Burnes added that cruise is an important category in New Zealand and some cruise lines have pulled out of the market. On Fiji, Burnes said pricing rose sharply and the destination became harder to sell, though he expects it can recover and said the company is working with Tourism Fiji and Fiji Airways on promotions.
- Consumer sensitivity: Burnes said the group’s customer demographic—averaging around age 55—has been less impacted by interest rate rises than other consumer businesses, and argued currency moves typically have limited effect unless shifts are significant.
- Discount package competition: Management said it could match very low-priced packages but generally does not pursue that segment, arguing the included product quality differs from what its agents typically sell.
Separately, Burnes discussed the company’s view on artificial intelligence, saying management believes customers still want to deal with people—particularly for complex itineraries—while also noting the company is exploring ways AI can support internal processes and efficiency.
In closing remarks, Burnes said Helloworld believes demand for leisure travel “will continue unabated” through the next period and said the company was “shaping up for some good wins” in the second half.
About Helloworld Travel (ASX:HLO)
Helloworld Travel Limited operates as a travel distribution company in Australia, New Zealand, and internationally. The company provides international and domestic travel products and services, as well as operates a franchised network of travel agents. It also operates retail travel brands, including Helloworld Travelthe Travel Professionals; and a network of retail outlets, such as Helloworld Business Travel, Magellan Travel, Mobile Travel Agent, My Travel Group, and The Travel Brokers; and distributes travel products and provides services under the Viva Holidays, Sunlover Holidays, Territory Discoveries, Asia Escape Holidays, Skiddoo, GO Holidays, Ready Rooms, and Seven Oceans Cruising brands, as well as operates needitnow.com.au.
