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.

• TTV rose 25% year-over-year to $2.59bn, with bookings up 23% to 4.3 million, driven by growth across all regions.

• Revenue increased 1% to $170.4m, but EBITDA declined 8–11% to $70–$77.5m due to margin compression and a 14% rise in expenses.

• Revenue margin declined 150bps to 6.6%, impacted by customer incentives, geographic and supply mix, and market disruptions.

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

Financial highlights

• Underlying EBITDA was $70m, and underlying NPAT was $52.5m for 1H25.

• Cash conversion for 1H25 at 139%, expected to normalize to ~80% for FY25.

• Expenses increased 14% year-over-year, reflecting investment in technology and headcount.

• No interim dividend declared for 1H25.

• Diluted EPS from continuing operations was 8.8–12.2 cents; effective tax rate 11.8–13.6%.

Outlook and guidance

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

• Revenue/TTV margin expected to stabilize at 6.5% for the medium term.

• Targeting $5bn TTV in FY25 and 50% EBITDA margin in FY26.

• Medium-term growth driven by market growth (~3%), new customer wins, and improved conversion.

• $150m on-market share buy-back to commence December 2024.