1H25: TTV up 25%, on track to deliver $1Billion incremental TTV in FY25.

Web Travel Group (WEB Travel Group Limited, ASX:WEB) today announced its financial results for the 6 months to 30 September 2024, with WebBeds TTV up 25% to $2.6 billion; on track to deliver $5 billion TTV in FY25 & underlying Group EBITDA $70 million.

• WebBeds TTV up 25% compared to 1H24, with significant variations of growth driven by geographic differences and customer mix
• Resultant TTV margin was consequently impacted by those variations. Group Revenue up 1% on 1H24; Expenses up 8% reflecting planned investment in headcount and technology; Underlying Group EBITDA down 8%.
• TTV margin was additionally negatively impacted by the collapse of FTI, the Paris Olympics and European football championships and underestimated customer incentive payments.
• It is expected that TTV margins will stabilise at c.6.5% along with a continued TTV target of $10 billion in FY30, and c. 50% EBITDA margins to deliver profitable growth.
• Underlying Group EBITDA $70.0 million reflects corporate costs ($7.5 m; 1H24 $11.0m). Underlying Group NPAT $52.5 million
• Strong capital position. $510 million cash; further $19 million spent on equity linked financial assets with exposure now to 8.4 million WEB shares; undertaking capital management initiatives in 2H25
• In the first 7 weeks of trading for 2H25, TTV is up 23% and TTV margins were at 6.5% in October. Based on current trading, we expect FY25 EBITDA to be between $117 - $122 million.

With overwhelming shareholder support, 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, GoSee and investment in Trip Ninja). As the demerger took effect during 1H25, the B2C businesses are included as a discontinued business in the Company’s 1H25 results and 1H24 has been restated to reflect pro forma B2B business only.

WebBeds Key Metrics.

(Additional information can be found in the ASX Release and Managing Director's Presentation.)

 

Commenting on the result, WEB Travel Group’s Managing Director John Guscic said:

“Following a record FY24, WebBeds’ first two months of trading in 1H25 continued to reflect the previous 6-month trading conditions.

In the period of June and July, TTV margins declined in Europe. The decline coincided with the collapse of FTI Group, the Paris Olympics and European football championships.

We underestimated this decline and the extent of changing market conditions and customer mix, and underlying margins did not recover in August as anticipated.

We also underestimated the incentive payments during August (at the time of the AGM) which were $7.5 million higher than planned, representing a decline of 0.3% of the TTV margin in 1H25.

Concurrent with our TTV target of $10 billion in FY30, we are forecasting our targeted customer, geographic and supplier mix to stabilise with a margin of c. 6.5% for the medium term. Our strong economies of scale are demonstrated by 1H25 delivering the same TTV and Bookings as calendar year 2019, but at c.30% lower cost.

To ensure higher visibility of future market trends and competition, and following the completion of the demerger, appropriate changes have been completed in management responsibility and accountabilities to sharply refocus market change visibility.

In the universe of global publicly traded companies, WebBeds remains one of the fastest organically growing travel brands. The business is highly scalable and efficiencies now in place give us confidence we will return to our c. 50% EBITDA margin target in FY26.

For the first 7 weeks of trading for 2H25, TTV is up 23% and TTV margins were at 6.5% in October. Based on current trading, we expect FY25 EBITDA to be between $117 - $122 million.”

ends.

Further information on 1H25 performance is set out in Web Travel Group’s 1H25 Investor Briefing Presentation. 

The Company will release FY25 results on 28 May 2025. Visit our Investor Calendar page for briefing details closer to the event.

This announcement has been approved for release to the ASX by the Board of Directors.

For further information.

Investors.
Please contact Carolyn Mole at investor@webtravelgroup.com