Web Travel’s first-half result met expectations, according to Morgans research analyst Belinda Moore, despite rising corporate costs and net profit pressures. The company experienced strong top-line growth and continued to increase its market share, which was offset by a 7.4 per cent dip in underlying net profit, partially attributed to the Middle East conflict. Web Travel is a global marketplace for the travel trade, connecting hotels and other accommodation providers with travel retailers. It facilitates transactions and provides technology solutions for the travel industry.
According to Moore, Web Travel’s cashflow remained robust, with a net cash position of $238.1 million. This provides substantial liquidity as the company approaches the maturity of its $250 million convertible notes in April 2026. The company’s fiscal year 2026 EBITDA guidance, ranging from $147 million to $155 million, aligns with consensus estimates. Web Travel remains positioned to achieve its long-term Total Transaction Value (TTV) and margin targets.
Bookings saw an 18 per cent increase, reaching 5.07 million, while TTV rose by 22 per cent to $3.17 billion. Despite a slight softening in revenue margin to 6.5 per cent, WebBeds’ underlying EBITDA increased by 21 per cent to $94 million. WebBeds is a division of Web Travel focusing on the B2B travel market.
Despite short-term uncertainties surrounding the convertible notes, Moore noted that Web Travel is continuing to gain market share and build scale. Investments in hotel contracting are expected to support higher-margin growth in the 2027 financial year.
