Shares in Web Travel Group climbed as much as 15.38% by midday to A$5.40 after the company delivered a robust outlook for financial year 2026 (FY26), building on a year of strategic repositioning.
The online business-to-business travel company reported total transaction volumes (TTV) of A$4.9 billion for FY25, representing a 22% year-on-year increase. While the TTV margin moderated to 6.7%, down from 8.2% in FY24, bookings rose 20% to 8,395.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for its core WebBeds division declined 14% to A$138.8 million, largely due to a drop in revenue to A$328.4 million and a 15% rise in expenses as part of its planned reinvestment. Underlying group EBITDA came in at A$120.6 million, compared to A$139.1 million in FY24, while net profit softened to A$79.2 million from A$101.1 million.
Following the demerger of Webjet Group in September last year, WebBeds has been “repurposed,” setting the stage for what the company described as an “exceptional start” to FY26. The group is targeting record EBITDA, underpinned by 37% growth in TTV and a 29% increase in bookings year-on-year. A long-term TTV target of A$10 billion by FY30, with EBITDA margins of approximately 50%, was reaffirmed.
Citi analysts described the results as “overall, an in-line result and positive outlook.”
“Assuming 37 per cent TTV growth, 6.5 per cent revenue margin and 45.5 per cent margin, we estimate ~$197m EBITDA or 6 per cent ahead of consensus FY26 (estimates of) $185m,” Citi stated.
“Our key take, however, is the re-investment in direct contracting, which we think should increase the quality of the business and provide incrementally more confidence in the take rates.”