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 net gain of $184m 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 revenue margin declined 150bps to 6.6% due to market and mix pressures.

• EBITDA declined 8–11% year-over-year to $70–77.5m, with margin down to 41.1–45.5% as expenses rose 14%.

• 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.

• Revenue/TTV margin declined to 6.6% from 8.1–8.4% year-over-year.

• Expenses rose 14% year-over-year to $92.9m, reflecting investment in headcount and technology.

• No interim dividend declared for 1H25.

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

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.

• No interim dividend planned; capital management focus on share buy-back.