WEB Travel Group limited Unsponsored ADR

First-half FY26 group TTV was up 22% and bookings were up 18%. WebBeds reported TTV of $3.2 billion, revenue of $204.6 million, and EBITDA of $94 million, each up 22%, 20%, and 21% respectively versus the prior year period. Group underlying EBITDA was $81.7 million after $12.3 million of corporate costs, NPAT was $48.6 million, CapEx was $18.6 million, and EBITDA margin was 45.9%. Management said FY26 EBITDA guidance is now $147 million to $155 million, with second-half TTV up 23% through Nov. 21. It also reiterated FY26 expectations for corporate cost of $24 million, D&A of $31 million, net financing costs of $15 million, underlying effective tax rate of 17%, and full-year cash conversion of 100%.

John Guscic struck an upbeat, confident tone, saying the company had delivered on its promises of world-class growth and stabilized margins. He emphasized three growth engines: market growth, new customers/supply, and conversion from existing customers, and said conversion improved another 12% in the half. He also framed AI as a potential growth channel rather than a threat, arguing Web Travel Group sits further down the value chain and benefits from better search/discovery tools.

Tony Ristevski focused on the bridge from reported to underlying results and on balance-sheet strength. He said corporate costs were $12.3 million, underlying effective tax rate should be around 17%, net finance costs are expected to be around $15 million for the full year, and CapEx trends roughly in line with expectations. He also highlighted strong liquidity, saying the company sits around $700 million of liquidity and that working capital has normalized, with debtor days around 20 and creditor days in the mid-30s.

Analysts pressed on the 10 bps revenue margin improvement, and management said it came from more directly contracted sales, some price increases, and a sharper mix by region/customer. Questions also focused on the directly contracted hotel strategy; management said it is over 50% directly contracted overall but under 50% in the Americas, where it is adding contracting staff and expects margins and inventory surfaceability to improve in FY27. Several analysts asked about Google’s agentic AI push and its potential to shift bookings away from OTAs; management called it a risk but said Web Travel Group should still benefit as a B2B supplier to the ecosystem and said no confirmed B2B2C plan exists, though it is under consideration.