WEB Travel Group (WEB) H1 2025 earnings summary

Executive summary

• Demerger completed in 1H25, separating B2B (WebBeds) and B2C businesses, with B2C now reported as discontinued operations and a $184m net gain recognized.

• First half 2025 results reflect B2B operations only, with TTV up 25% year-over-year to $2.59bn and bookings up 22–23%.

• Revenue increased 1% to $170.4m, but revenue margin declined to 6.6% from 8.1–8.4% year-over-year.

• EBITDA down 11% year-over-year to $77.5m, with underlying EBITDA at $70m and margin down to 41.1–45.5% due to higher expenses and margin compression.

• Strong post-demerger cash position of $510m as of 30 September 2024.

Financial highlights

• TTV reached $2.59bn, up from $2.08bn in H1 2024; bookings up to 4.3m.

• Revenue/TTV margin declined to 6.6%; EBITDA margin at 41.1–45.5%, down from 45–51.5% year-over-year.

• Underlying NPAT from continuing operations was $37.5m–$52.5m; total NPAT including discontinued operations and demerger gain was $228.1m.

• Cash conversion at 139% for H1, expected to normalize to 80% for FY25.

• No interim dividend declared for H1 2025.

Outlook and guidance

• FY25 underlying EBITDA expected between $117m and $122m.

• Revenue to TTV margin expected to stabilize at 6.5% for at least the next three reporting periods.

• EBITDA margin targeted to return to 50% in FY26.

• TTV on track for $5bn in FY25, with long-term goal of $10bn by 2030.

• Capital management focus on share buy-back up to $150m.