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Total Transaction Value (TTV): Up 22% to $3.17 billion. Revenue: Increased by 20% to $204.6 million. EBITDA: Up 21% to $94 million. EBITDA Margin: Achieved 45.9% within the expected range of 44% to 47%. Net Profit After Tax (NPAT): $48.6 million. Cash Flow: Cash position strong with $120 million generated, despite $150 million spent on share buybacks. Capital Expenditure (CapEx): $18.6 million, in line with expectations. Bookings: Increased by 18% to 5.07 million. Expenses: Up 19%, reflecting CPI increases and reintroduction of the bonus scheme. Effective Tax Rate: Expected to be around 17% for the year. Net Financing Costs: $7.4 million in the first half. Cash Conversion: Expected to be approximately 100% for the full year. Geographic Performance: Americas up 36%, Europe bookings up 14%, APAC showing double-digit growth.

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Release Date: November 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Web Travel Group Ltd (WEJTY) reported a 22% increase in Total Transaction Value (TTV) and a 17% rise in EBITDA for the first half of FY26, indicating strong financial performance. The company maintained a stable margin of 6.5%, aligning with their strategic goals and demonstrating effective cost management. Web Travel Group Ltd (WEJTY) achieved record revenue of $204.6 million and record EBITDA of $94 million, reflecting robust revenue growth and operational efficiency. The company expanded its customer base and diversified its supply mix, enhancing its market presence and competitive edge. Web Travel Group Ltd (WEJTY) increased its underdrawn revolver credit facility from $40 million to AUD200 million, providing greater financial flexibility.

Negative Points

The Middle East market experienced a significant slowdown due to geopolitical tensions, impacting regional growth. Currency fluctuations, particularly the appreciation of the euro against the US dollar, negatively affected functional currency growth, which was only up 14% compared to an 18% increase in bookings. Corporate costs increased to $12.3 million post-demerger, impacting the company's net profit after tax (NPAT) despite record earnings. The company faced challenges with the wrong inventory being sold at incorrect prices in FY25, which they are currently addressing. The resignation of CFO Tony Ristevski introduces potential uncertainty in financial leadership during the transition period.

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Q & A Highlights

Q: Can you provide more details on the 10 basis points improvement in revenue margin? A: John Guscic, Managing Director, explained that the improvement was driven by an increase in directly contracted sales and strategic pricing adjustments in certain regions. Despite faster growth in regions with lower margins, the company managed to enhance overall margins through these initiatives.

Q: What is the expected impact of the accounting change on the second half? A: Tony Ristevski, CFO, noted that the accounting change would result in less variability between halves, with the underlying business performance showing improvement. The margin for the year is expected to be at least 6.5%.

Q: How do you view the market growth of 5% given the volatility in the first half? A: John Guscic highlighted the company's diverse geographic and channel mix, which allows them to outperform the market despite some regions or customer segments experiencing declines. The overall business continues to grow due to a balanced portfolio of winners and losers.

Q: Can you update us on the progress of the directly contracted hotel strategy in the Americas? A: John Guscic stated that while over 60% of inventory is directly contracted in most regions, the Americas are under 50%. The company is focusing on increasing direct contracts in the Americas, expecting improvements in margins and inventory availability by FY27.

Q: Is there an opportunity for Web Travel Group to partner with AI companies like Google for inventory supply? A: John Guscic mentioned that while there are no confirmed plans for a B2B2C model, the company is exploring various opportunities to maximize growth, including potential partnerships with AI companies.

Q: How does the company plan to manage cost growth while sustaining revenue growth? A: John Guscic emphasized that while costs may grow in high-single digits due to strategic investments, the focus remains on growing revenue at a faster rate than expenses. The company aims to maintain competitiveness and future-proof the business.

Q: What are the key factors contributing to the expected 50% EBITDA margin in FY27? A: John Guscic explained that consistent revenue growth outpacing expense growth, along with stable revenue margins and expected TTV increases, are the main drivers for achieving the 50% EBITDA margin target.

Q: How does the company view the potential impact of Google's travel initiatives on OTAs and Web Travel Group? A: John Guscic acknowledged that while Google's initiatives could shift some bookings away from OTAs, the overall impact on Web Travel Group is expected to be positive. The company believes its diverse inventory and strong partnerships will continue to drive growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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