1H24 Results: Transformation Strategy Delivers.

Web Travel Group (ASX: WEB) today announced its financial results for 1H24, with underlying EBITDA $102.1 million; underlying NPAT $70.7 million; WebBeds Bookings, TTV, Revenue and EBITDA all materially ahead of pre-pandemic levels; FY24 Group EBITDA expected to be $180 to $190 million.

• Group delivers underlying 1H24 EBITDA of $102.1 million, an increase of 41% over 1H23 - Bookings up 27% to 4.37 million; TTV up 35% to $2.90 billion; Revenue up 39% to $244.5 million.
• WebBeds significantly ahead of both 1H23 and pre-pandemic levels for all key metrics - Booking volumes 50% higher than pre-pandemic levels; 1H24 EBITDA $89.9 million (up 41% on 1H23; up 23% on pre-pandemic); 1H24 EBITDA margin 52.3% 
• Webjet OTA seeing material increase in international market share – strong growth over 1H23 on all metrics with TTV back to pre-pandemic levels; 1H24 EBITDA $26.6 million (up 24% on 1H23); EBITDA margin 43.4% 
• GoSee profitability increasing – strong improvement over 1H23; 1H24 EBITDA $1.1 million (up 83% on 1H23); inbound tourism and supply chain challenges continue 
• Significant cash generation – $144 million cash generated in the period; $634 million Total Cash after $27 million capital management initiatives
• FY24 EBITDA expected to be between $180 to $190 million.

Key metrics.

1H24 saw the group's Bookings, Total Transaction Value (TTV), Revenue, and earnings before interest tax depreciation and amortisation (EBITDA) all up materially compared to the same period last year.

1H24 Key Metrics - EBITDA up 41% over 1H23, Bookings up 27% to 4.37 million; TTV up 35% to $2.90 billion; Revenue up 39% to $244.5 million.

“WebBeds Bookings, TTV, Revenue and EBITDA were all significantly ahead of both 1H23 and pre-pandemic levels, reflecting the transformation work we undertook when the pandemic hit to capture growth as travel returned. We’ve broadened our distribution base, expanded our global presence and introduced new product innovations. As a result, we are now selling more product to more customers in more geographies, all while being more efficient and delivering best-in-class EBITDA margins.  We continue to see incredible opportunities for WebBeds and have set the foundations to capture growth by investing ahead of the curve to ensure we are able to effectively scale going forward. We will continue to invest in attractive opportunities and innovation in order to maximise the value of our relationships with both our supply and demand partners.

Webjet OTA saw strong growth in international bookings for the period although capacity constraints continued to subdue overall bookings.  Webjet OTA’s international flights market share grew 24% compared to 1H23, with Trip Ninja playing a key role providing unique content and real savings for customers. Higher margin revenue opportunities are helping offset the lower commissions now paid on international bookings. Hotel bookings in the period were around 50% higher than pre-pandemic levels.  Our continued focus on cost efficiencies resulted in EBITDA margins getting back to pre-pandemic levels.  The market continues to be impacted by airline capacity constraints but we see ongoing growth opportunities as capacity returns to 2019 levels.

GoSee saw strong improvement over the prior period but continued to be constrained by inbound tourism and supply chain challenges. We are focusing on acquisition strategies to improve site traffic in light of current capacity and pricing constraints. 

The global economy remains uncertain but global demand for travel remains resilient and notwithstanding the current geo-political issues, we expect FY24 EBITDA to significantly exceed pre-pandemic levels. We expect FY24 EBITDA to be between $180 million and $190 million - 14% to 20% ahead of CY19 (i.e. pre-pandemic) levels.”

Further information on 1H24 performance is set out in Web Travel Group’s 1H24 Investor Presentation.