WEB Travel Group (WEB) H2 2025 earnings summary

Executive summary

• Demerger completed on 30 September 2024, with results reflecting B2B WebBeds only and B2C operations discontinued.

• Underlying EBITDA at AUD 120.6 million and underlying NPAT at AUD 79.2 million, with EBITDA down 14% to AUD 138.8 million due to margin and cost pressures.

• Strong cash position post-demerger, with AUD 363 million on hand at 31 March 2025.

• Completed AUD 150 million share buyback, addressing 88% of potential dilution from convertible notes.

• Focus on organic growth, operational efficiency, and recalibrating supply mix for higher margins.

Financial highlights

• Bookings up 20% to 8.4 million; TTV up 22% to AUD 4.9 billion; revenue at AUD 328.4 million, up 1% but below expectations due to margin pressures.

• Underlying NPAT at AUD 79.2 million, down from AUD 101.1 million year-over-year.

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

• Non-operating expenses of AUD 37.9 million included demerger costs, capital management, and disputed payment write-offs.

• Cash conversion at 73% for FY25, expected to normalize to 100% in FY26.

Outlook and guidance

• Targeting record EBITDA in FY26, with EBITDA margin guidance at 44%-47% and a target of 50% by FY27.

• TTV growth on track for $10 billion by FY30, with a run rate potentially exceeding AUD 1 billion per year.

• Take rate expected to be maintained at circa 6.5% medium term, with upside possible in FY27.

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

• YTD FY26 (to 26 May) shows bookings up 29% and TTV up 37% year-over-year, with all regions trading above market growth.