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 significant operational disruption from the Middle East conflict. The company’s underlying EBITDA exceeded AUD 60 million, while EBITDA margin improved to 28.9%, up 0.1 percentage points from the prior period.
The June quarter saw near AUD 200 million in customer refunds following airline suspension of operations due to regional instability, which constrained quarterly growth to 3.3%, well below the 15% to 20% range management had anticipated pre-disruption. Revenue margin expanded to 5.1% from 4.9%, supported by a 92% gross profit margin. Underlying expenses rose 6% year-over-year, while operating cash flow from continuing operations totaled AUD 23.3 million, reversing a AUD 12.5 million outflow in FY 2025.
New Zealand remained the weakest market, with consumers prioritizing shorter trips, lower-cost accommodations, and economy cabin classes. Cruise ship departures from New Zealand also weighed on local transaction volumes. Management projects New Zealand TTV growth to recover to 5% to 8% in FY 2027. Australia, by contrast, demonstrated resilience, with the company’s customer demographic remaining stable at an average age of 55 since 2016.
The company’s ReadyRooms platform processed just under AUD 100 million in TTV, up from approximately AUD 50 million at acquisition. Helloworld operates a network of 2,600 agencies and brokers with over 10,000 travel professionals, maintaining contracts with 154 global airline carriers. Interest income declined to AUD 3.2 million from AUD 5.8 million in the prior year.
Helloworld declared a final dividend of AUD 0.05 per share, fully franked, bringing the full-year dividend to AUD 0.10 per share. The company’s return on equity stood at 14% over the last twelve months, while its effective tax rate remained below 30%, excluding significant items. The stock trades at a P/E ratio of 5.29 with a beta of 0.71 and offers a dividend yield of nearly 7%.
Shares slipped 0.63% to AUD 1.57, within a 52-week range of AUD 1.34 to AUD 2.10. Helloworld also secured a 10-year naming rights deal for a new stadium in Penrith, set to launch in February 2027. The company continues to deploy AI tools to automate contract uploads for over 3,000 hotel and touring agreements, with ReadyRooms now featuring 250,000 bookable hotels.
