Helloworld Ltd reported a 4.1% year-over-year increase in total transaction value to AUD 3.99 billion for the second half of fiscal 2026, despite disruptions linked to the Middle East conflict that prompted airline suspensions and forced nearly AUD 200 million in customer refunds.
Underlying earnings before interest, tax, depreciation and amortization rose to more than AUD 60 million, with an EBITDA margin of 28.9%, up 0.1 percentage points from the prior period. Gross profit margin reached 92%, while operating cash flow from continuing operations totaled AUD 23.3 million, compared with a net cash outflow of AUD 12.5 million in fiscal 2025. Revenue margin improved to 5.1% from 4.9%.
The group’s final dividend was set at AUD 0.05 per share, fully franked, bringing the full-year annual dividend to AUD 0.10 per share. Return on equity over the last twelve months stood at 14%, while the effective tax rate excluding significant items was 25%. Interest income declined to AUD 3.2 million from AUD 5.8 million a year earlier.
Chief Executive Andrew Burnes noted that despite the Middle East shock, the company achieved modest growth in total transaction value, attributing resilience to travel’s perceived non-discretionary status in household budgets. He highlighted the full-year EBITDA margin improvement as a positive outcome. Cinzia Burnes, head of wholesale and inbound, said the company is selectively applying artificial intelligence while maintaining traditional agent-based services.
Quarterly performance showed uneven growth, with the June quarter expanding by 3.3%, falling short of management’s pre-conflict expectation of 15% to 20% growth. Earlier quarters in fiscal 2026 recorded declines of 1.5% in Q1 and gains of 6% in Q2, followed by an 11.9% increase in Q3. Nearly AUD 200 million in refunds were processed due to the regional disruptions.
Helloworld operates a network of 2,600 retail agencies and brokers, supported by over 10,000 travel professionals and contracts with 154 global airline carriers. The company’s average customer demographic age is 55.
Looking ahead, management expects New Zealand total transaction value to grow 5% to 8% in fiscal 2027, with cruise bookings showing double-digit growth since July. The group also secured naming rights for Helloworld Stadium in Penrith under a 5+5 year agreement starting February 2027.
Helloworld’s shares slipped 0.63% to AUD 1.57, with a 52-week range of AUD 1.34 to AUD 2.10, a P/E ratio of 5.29, a beta of 0.71, and a dividend yield near 7%.
