Helloworld Travel Limited (ASX:HLO) Updates FY25 Guidance and Reports Strong Operational Performance
Financial Guidance
Helloworld Travel Limited (ASX:HLO) has revised its FY25 Underlying EBITDA guidance to between $52 million and $56 million, down from the previous range of $56 million to $62 million. The adjustment accounts for market volatility and economic uncertainty in the latter half of FY25.
Operational Performance
The company continues to invest in proprietary technologies for ticketing, wholesale, and accommodation platforms, as well as in revenue-enhancing initiatives and network retention activities. HLO is also focused on cost management, productivity opportunities, and automation enhancements to navigate current market challenges.
Trading Trends
Outbound volumes to the United States remain steady with FY25 year-to-date air sales only slightly down compared to the previous year. Forward bookings for FY26 have grown by over 15% as of April. In other outbound markets, medium-haul air sales to Asia and the Pacific are up 4% year-on-year, while cruise sales have increased by approximately 40%.
Wholesale and Network Updates
Wholesale sales in Australia have risen by 30% and over 40% in New Zealand by the end of April. Over 96% of agents across HLO’s networks have re-signed, maintaining a membership of over 2,700 in Australia and New Zealand. The company plans to open more than 10 new agencies in the first half of FY26.
Executive Comments
Andrew Burnes, AO, CEO and Managing Director of Helloworld Travel Limited stated, “While uncertainty has impacted near-term travel patterns and choice of destination, this is largely timing and is expected to rebound in FY26.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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