Web Travel Group Limited

For first half FY26, WebBeds TTV was $3.2 billion, up 22% year over year; revenue was $204.6 million, up 20%; and EBITDA was $94 million, up 21%. Bookings were 5.70 million, underlying EBITDA was $81.7 million after $12.3 million of corporate costs, and NPAT was $48.6 million. EBITDA margin was 45.9%, and management said the full-year target remains 44% to 47%. On the balance sheet, CapEx was $18.6 million, cash generation was about $120 million for the year, and the undrawn revolver was increased from $40 million to $200 million. For FY26, management guided to EBITDA of $147 million to $155 million and said second-half TTV through November 21 was up 23% versus the prior year. They also reiterated corporate cost of $24 million, D&A of $31 million, net financing costs of $15 million, an underlying effective tax rate of about 17%, and full-year cash conversion of 100%.

John Guscic struck an upbeat, confident tone and repeatedly said the company had delivered on its promises: world-class growth, stabilized margins, and a stronger operating model. He emphasized three growth engines—market growth, new customer/supply wins, and conversion—and said the business is becoming more scalable, with bookings per FTE up 174% versus pre-pandemic levels. He also argued that AI is more opportunity than threat, saying it should improve travel search and help feed demand into Web Travel’s channels rather than displace them.

Tony Ristevski focused on the statutory and underlying bridge, highlighting that corporate costs were $12.3 million for the half and that underlying operating expenses included a $5.5 million mark-to-market on equity-linked instruments. He said the underlying effective tax rate should be around 17% for the year, net finance costs are expected to be about $15 million, and D&A is on track for $31 million. On liquidity, he pointed to a strong cash position, working capital normalization, and total liquidity of around $700 million, including the upsized revolver and cash on hand. He also said debtors are around 20 days and creditors are in the mid-30s, with cash conversion expected to be about 100% in the second half.

Analysts focused on the drivers of the 10 basis point revenue margin improvement, with management saying it came from more directly contracted sales, better pricing in some jurisdictions, and a more favorable mix within the business. Several questions centered on the direct contracting push in the Americas; management said the region is under 50% directly contracted versus over 60% in the other regions, and that adding contracting staff there should improve margins and inventory availability in FY27. The biggest concern was Google’s agentic AI push into travel and whether it could steer bookings toward hotels or away from OTAs; John Guscic said that could be a downside risk, but argued Web Travel’s broad inventory, independent-hotel focus, and role as a supplier to AI-enabled channels make it more likely to be a net beneficiary over time.