Web Travel Group (ASX: WEB) shares rebounded sharply on Monday, recovering some of the ground lost late last week as management moved to calm investor concerns over a Spanish tax audit.
The stock rose strongly in early trade after plunging 38% on Friday, when the hotel room aggregator disclosed it was the subject of an audit involving its Spanish operations. It also produced solid numbers.
Based on current performance trends:
- FY27 booking growth is expected to remain in double digits
- FY27 TTV margins are expected to remain stable at 6.5%
Managing director John Guscic said the sell-off had been overblown and stressed the issue was not material to the business.
“If we felt it was in any way material to guidance, future performance or business model, we would have disclosed it,” Guscic said.
Web Travel said the market update was prompted by Spanish media reports, after outlet Preferente reported that tax authorities had raided the company’s Palma offices.
Guscic reaffirmed guidance for underlying earnings and said the Spanish audit would not impact the group’s prospects for FY26.
The volatility comes amid heightened investor sensitivity toward the travel sector, with Corporate Travel Management still suspended from trading and unable to say when it will report its FY25 results. Corporate Travel initially told the market that discrepancies identified by its auditors would be immaterial, before later revealing it would need to refund more than $161 million to the UK government.
The contrasting situations have added to sector-wide jitters, amplifying the market reaction to Web Travel’s disclosure despite management’s reassurances.
Shares are trading 18.92% to 3.52 just after midday.