Web Travel Group Ltd.

For the first half of FY '26, bookings were 5.70 million, TTV was $3.17 billion/$3.2 billion, revenue was $204.6 million, and EBITDA was $94 million. WebBeds TTV increased 22%, revenue increased 20%, EBITDA increased 21%, and group EBITDA was up $81.7 million after corporate costs of $12.3 million; NPAT was $48.6 million, CapEx was $18.6 million, and EBITDA margin was 45.9%. Management said expenses were up 19% and noted functional-currency bookings were up 14% versus 18% globally due to FX, while second-half TTV to November 21 was up 23% year over year. Full-year FY '26 guidance calls for EBITDA of $147 million to $155 million, TTV margin of at least 6.5%, expenses to grow in high single digits, corporate cost of $24 million, D&A of $31 million, net financing costs of $15 million, an underlying tax rate of about 17%, and full-year cash conversion of 100%; CapEx is expected to be in line with FY '25.

John Guscic framed the quarter as evidence that Web Travel is delivering on its core promises: world-class growth and stable margins. He emphasized the business is benefiting from three growth engines — market growth, new supply/customers, and conversion — and said conversion rose another 12% in the half. He also stressed that AI and Google’s travel initiatives are more opportunity than threat because WebBeds supplies the channels and inventory those platforms will need, while direct contracting and chain-hotel relationships should support margins and growth into FY '27.

Tony Ristevski focused on the post-demerger financial structure and the main items affecting earnings and cash. He said corporate cost is tracking to about $24 million, underlying tax rate should be around 17%, and net finance costs are expected to be around $15 million for the full year, driven by the larger revolver, lower cash, and option premium costs. He also highlighted a strong liquidity position of around $700 million, debtor days around 20, creditor days in the mid-30s, ROIC near 22%, and said CapEx should be broadly like-for-like in functional currency versus FY '25 before growing with inflation.

Analysts pressed on what was driving the revenue margin improvement and the sustainability of the 6.5% margin, and management pointed to higher direct contracting, better pricing, and a mix shift toward higher-margin supply. Questions also focused on Google’s agentic AI push and whether it could steer bookings away from OTAs; management acknowledged it could be dilutive in some cases but argued WebBeds would still benefit because it supplies the inventory and channels that AI tools will surface. Other questions covered the direct-contracting buildout, the seasonal skew of second-half earnings, and whether cost growth could remain elevated; management said North American contracting is still being built out, the business has historically had a first-half skew, and expense growth is being managed below revenue growth except where it is intentionally investing.