WEB Travel Group (WEB) H2 2025 earnings summary

Executive summary

• Demerger of B2C business completed on 30 September 2024; FY25 results reflect only B2B WebBeds, with B2C operations treated as discontinued.

• FY25 TTV rose 22% year-over-year to $4.9 billion, with bookings up 20% to 8.4 million and revenue up 1% to $328.4 million.

• Underlying EBITDA was $120.6 million, down 13% from FY24, and underlying NPAT was $79.2 million, down from $101.1 million.

• Strong cash position post-demerger, with $363.6 million as of 31 March 2025; $150 million share buyback completed, addressing 88% of potential dilution from convertible notes.

• Focus on organic growth, operational efficiency, and recalibrating supply mix for higher margins, with ongoing investment in technology and direct contracting.

Financial highlights

• Bookings up 20% to 8.4 million; TTV up 22% to $4.9 billion; revenue at $328.4 million, below expectations due to margin pressures and supply mix.

• EBITDA down 14% to $138.8 million from $160.8 million in FY24; underlying NPAT at $79.2 million, down from $101.1 million.

• Expenses increased 15% to $189.6 million, reflecting investment in hotel contracting and technology.

• Cash conversion was 73% in FY25, expected to normalize to 100% in FY26 as payment days normalize.

• Statutory NPAT from continuing operations was $11.1 million, reflecting significant non-operating expenses and impairment charges.

Outlook and guidance

• Targeting record EBITDA in FY26, with strong bookings and TTV growth in the first months of the year.

• EBITDA margin guidance for FY26 at 44%-47%, targeting 50% by FY27; TTV growth on track for $10 billion by FY30.

• TTV margins expected to stabilize at 6.5% medium term, with upside possible in FY27.

• OpEx growth forecasted at high single digits in FY26, moderating to mid-single digits in FY27; CAPEX to remain in line with FY25.

• Focus on optimizing supply mix and increasing directly contracted inventory, especially in Asia Pacific and the Americas.