Date: 27 November 2024
WEB Travel Group Limited (WEB Travel Group or the Company) has reported strong financial results for the six months ended 30 September 2024, with Total Transaction Value (TTV) rising by 25%, and the Company on track to deliver an additional $1 billion in TTV for FY25.
Key Highlights:
- WebBeds TTV: Up 25% to $2.6 billion, with variations in growth driven by geographic differences and customer mix.
- Group Revenue: Increased by 1% compared to 1H24.
- Underlying Group EBITDA: Down 8% to $70.0 million, reflecting planned investments in headcount and technology.
- TTV Margin: Impacted by factors such as the collapse of FTI, the Paris Olympics, European football championships, and higher-than-expected customer incentive payments.
- EBITDA Forecast for FY25: Expected to range between $117 million and $122 million.
The Company also reported a strong capital position with $510 million in cash and ongoing capital management initiatives set for the second half of FY25. TTV in the first seven weeks of 2H25 has increased by 23%, with TTV margins at 6.5% in October, reaffirming positive growth momentum.
Demerger Update:
The demerger of Webjet Group Limited (ASX:WJL) from WEB Travel Group was completed on 30 September 2024, resulting in the separation of the WebBeds B2B business from the Webjet Group’s B2C businesses. The demerger is expected to sharpen the focus of each entity, with WebBeds continuing its trajectory towards a $10 billion TTV target by FY30.
Management Commentary:
John Guscic, Managing Director of WEB Travel Group, noted that the business had to navigate challenges such as the collapse of FTI and significant international events that impacted TTV margins. However, he expressed confidence in returning to the Company’s target EBITDA margins of around 50% by FY26, supported by a scalable business model and improved efficiencies.
Looking Ahead: WEB Travel Group is well-positioned to continue its growth, with strong early performance in 2H25. The Company remains focused on achieving a medium-term TTV margin stabilization at around 6.5%, alongside significant investments and operational improvements in the years ahead.
