TBO Tek Limited has reported strong double-digit growth in its core organic business for Q2 and H1 FY27, achieving a 16% growth in GTV leading to a 27% growth in adjusted EBITDA. Despite a challenging geopolitical climate, the company demonstrated operating leverage. Key markets like Europe and APAC saw over 30% growth, while the Middle East delivered 10% growth. The company also discussed its strategy for Classic Vacations and the impact of AI on the travel industry.
TBO Tek Reports Strong Growth in Q2 and H1 FY27
TBO Tek Limited announced its financial results for the second quarter and first half of FY27, highlighting robust performance despite a difficult geopolitical environment. The company achieved a 16% growth in Gross Transaction Value (GTV), which translated into a substantial 27% growth in adjusted EBITDA. This performance underscores TBO Tek’s continued demonstration of operating leverage for the second consecutive quarter.
Market Performance and Strategic Highlights
The company’s report indicated strong growth across various regions. Markets such as Europe and APAC delivered growth exceeding 30%. Notably, the Middle East, despite facing significant geopolitical challenges, saw a 10% growth on a constant currency basis, which the management deemed remarkable given the circumstances. The company also provided an update on its acquisition of Classic Vacations, completing one year of integration and focusing on sales team expansion and business development to tap into the luxury segment.
Operational Efficiencies and Future Outlook
TBO Tek continues to prioritize operational efficiencies, investing in AI and technology to automate processes and enhance its sales team’s effectiveness. This focus is reflected in the high single-digit growth of constant currency SG&A, significantly outpacing top-line growth. The management acknowledged the current market pressures, including elevated fares and geopolitical uncertainty, but expressed confidence in maintaining positive year-on-year growth. The company is strategically positioning itself for future growth by focusing on complex and luxury travel experiences, and by leveraging technology and AI to enhance its service offerings.
Q&A Highlights
During the earnings call, management addressed questions regarding demand environment, operating leverage, the integration of Classic Vacations, and the potential impact of AI. While acknowledging current demand pressures and the volatile macro environment, the company is focused on market share gains, high-value transactions, and is prepared for a potential market rebound. The integration of Classic Vacations is progressing, with a focus on building its luxury segment capabilities. TBO Tek views AI as a significant trend, with travel being a key use case, but believes its B2B focus positions it well for long-term resilience.
Source: BSE
