Helloworld lifts earnings guidance as cruise sales grow strongly and margins improve

Despite reporting only marginally lower outbound volumes in the US and double-digit forward bookings growth through to April, in May the Melbourne-headquartered group cut its underlying EBITDA guidance from $56-62 million down to a more modest $52-56 million.

However, as a result of "various factors" its guidance has returned to a similar if not better level than before at $58-62 million, with CEO and managing director Andrew Burnes citing continued strong growth for cruise sales and 110 per cent year-on-year growth for its Ready Rooms business.

Helloworld's total transaction volume (TTV) has declined year-on-year due to "marginally lower customer numbers, changes in destination mix from higher spending long-haul trips to more mid-haul destinations including Japan, Bali, Thailand and Fiji".

"However, margins have improved slightly, costs have been well managed, and we have booked a gain on revaluation of HLO’s Webjet Group Limited (ASX: WJL) shareholding," Burnes says.

In addition, he points to lower airfares, including a decline in average airfares in premium classes.

"HLO has strong forward bookings for the remainder of the 2025 calendar year and well into 2026," he says.

The CEO highlights the group's travel network agents continue to experience high demand for leisure and business travel in Australia and New Zealand.

"At the same time, HLO has re-signed over 96 per cent of its agents including First Travel Group agents in New Zealand, part of the broader ETG network.

"HLO subsidiaries and investments including Express Travel Group, MTA and Phil Hoffmann Travel have performed very well over the year."

The group also recently acquired Wellington-based Barlow Travel Group (BTG), which trades as BCD Travel (BCD) in New Zealand under licence from Netherlands-based BCD Travel.

HLO shares rose 13.8 per cent today to $1.69.