FY25 Results: Refocused, recalibrated and back on track.

Web Travel Group (ASX:WEB) today announced its financial results for the 12 months to 31 March 2025, delivering, with WebBeds TTV up 22% to $4.9 billion, TTV margins stabilised, Underlying Group EBITDA $120.6 million; $150 million buyback completed and a strong start to FY26 with trading in all regions significantly above market growth.

• Market leading TTV growth rate continues – TTV up 22% (23% in constant currency) compared to FY24; continue to see strong growth in all regions
• TTV margins have stabilised – FY25 TTV margin 6.7% (FY24: 8.2%); margins expected to stabilise at 6.5% for the medium term.
• WebBeds EBITDA $138.8 million reflects lower Revenue and planned increase in Expenses – Revenue up 1% in line with lower TTV margins; Expenses up 15% reflecting planned investment in headcount and technology; EBITDA down 14% to $138.8 million (FY24 160.8 million)
• Group results reflect WebBeds and Corporate operations – Underlying Group EBITDA $120.6 million (FY24: 139.1 million). Underlying Group NPAT $79.2 million (FY24: 101.1 million)
• Focus now on optimising supply sources – increasing hotel contractors to deliver more directly contracted inventory.
• Strong capital position post demerger - $363.6 million cash as at 31 March 2025. $150 million on-market share buyback completed, coupled with economic exposure to 8.4 million WEB shares via equity linked financial assets, as such, the Company has addressed approximately 88% of potential future dilution from convertible notes due April 2026.
• FY26 YTD trading in all regions significantly above market growth.

The Demerger of Webjet Group Limited (ASX:WJL) from the Company was implemented on 30 September 2024, resulting in the Company operating the WebBeds B2B business and Webjet Group Limited operating the B2C businesses (Webjet OTA, Cars & Motorhomes [formerly GoSee] and Trip Ninja). As the Demerger took effect during FY25, the B2C businesses are included as a discontinued business in the Company’s FY25 results and FY24 has been restated to reflect pro forma B2B business only.

WebBeds Key Metrics.

FY24 Key Metrics:  Bookings up 20% growth driven by strong performance across all regions; TTV up 22% (23% EUR) increase reflects bookings growth and 2% ABV increase, Revenue up 1% driven by customer and geographic mix & EBITDA reflecting flat Revenue offset by increases in operating expenses.

Commenting on the result, Web Travel Group Managing Director John Guscic said:

“Our significant TTV growth continued unabated during the year. At almost $5 billion, TTV is nearly double what it was before the pandemic, with our key growth markets of Asia-Pacific and the Americas now accounting for 53% of TTV, up from 31% pre pandemic. After events in the first half saw TTV margin expectations fall, margins stabilised in the second half and EBITDA for the full year was in line with expectations. WebBeds’ TTV growth rate is the highest of the global travel companies and at 42%, EBITDA margins remain world class.

We are confident TTV margins will be at least 6.5% for the medium term. Company-driven factors in the first half have been addressed and we are actively looking for opportunities to increase margins. Our focus is now on optimising supply mix. We are investing in directly contracted inventory, reengineering supply agreements and increasing the number of hotel contractors, particularly in Asia Pacific and the Americas. We are confident this will generate significant earnings growth in the short to medium term.

Post demerger the WebBeds business is repurposed, the team is reinvigorated and we are all focused on maintaining our market leading TTV growth rates, and driving economies of scale to deliver significant EBITDA growth by FY30.

We have had an exceptional start to FY26 trading with TTV up 37% and Bookings up 29% compared to the same period last year. We are targeting record EBITDA in FY26 and remain committed to delivering $10 billion TTV in FY30 at circa 50% EBITDA margins.”

Commenting on recent capital management initiatives, Web Travel Group’s Chair Roger Sharp said:

“In line with the Company’s objective to maximise shareholder value and reduce potential future dilution from the $250 million convertible notes due in April 2026, we completed a $150 million on-market share buyback in March 2025. Through the buyback and equity linked financial assets in place, collectively we have addressed approximately 88% of the potential future dilution from shares linked to the convertible notes.

While we are confident in the medium term outlook for the Company’s share price, given the current volatility of global equity markets, there is a risk note holders may choose to have the notes repaid in April 2026 instead of converting them to shares. We have therefore increased the revolving credit facility from $40 million to $200 million to provide ample liquidity to support this scenario.”

Further information on FY25 performance is set out in Web Travel Group’s FY25 Investor Presentation and Financial Report for the year ended 31 March 2025.