Why is Web Travel stock such a hot topic today?

This travel stock isn't going anywhere today. Why isn't it moving?

| More on:
a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It was supposed to be a big day for Web Travel Group Ltd (ASX: WEB) stock on Wednesday.

But instead, the global business to business travel technology company's shares have been suspended from trade.

What's going on?

Web Travel was supposed to be releasing its half year results for FY 2025 this morning.

This will be the first set of results the company has released since spinning off its Webjet Group (ASX: WJL) online travel booking business in September.

A recent market update revealed that Web Travel was expecting WebBeds Total Transaction Value (TTV) and Bookings to be significantly ahead of the prior corresponding period.

However, its underlying EBITDA margins are expected to fall to ~44% due to weakness in Europe.

This reflects WebBeds' TTV/revenue margins being impacted by the collapse of FTI Group, the Paris Olympics, and the European Football Championship. In addition, overall margins were further impacted by customer financial incentive agreements in place, which are now under review.

As a result, first half TTV/revenue margins are expected to be ~6.4%, down from its previous guidance of ~7%.

But investors will have to sit tight and find out what Web Travel reports. That's because its stock is expected to be offline potentially until the end of the month.

Why is Web Travel stock suspended?

On Monday, Web Travel requested a trading halt until this morning. Its request stated the following:

The trading halt is requested to enable Web Travel Group to manage its disclosure obligations in relation to potential adjustments to its prior year financial statements. This is not expected to impact the company's 1H25 results and outlook.

However, it has now become apparent that the company needs much longer to sort out its accounts.

This morning, Web Travel requested that its stock being suspended until 21 November while its auditor works through its accounts. Though, it has warned that it could need as long as 29 November to get all its ducks in a row. It said:

WEB Travel Group advises that the 1H25 results release and webcast briefing scheduled for today, Wednesday 20 November 2024 will be postponed. Web Travel Group is working with its auditor Deloitte to finalise the 1H25 financial statements and expects to be in a position to lodge its Appendix 4D for the half year ended 30 September 2024 by no later than the commencement of trading on 29 November 2024.

All eyes will be on WEB Travel stock when it returns to the ASX boards. Stay tuned for that.

Should you invest $1,000 in Web Travel Group Limited right now?

Before you buy Web Travel Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Web Travel Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Own Qantas shares? Here's what to look out for in the upcoming result

What can investors expect in the impending HY25 result?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

2 high-profile ASX 200 travel shares reporting next week

Are these Aussie travel companies set for turbulence this reporting season?

Read more »

An elephant and a mouse on either end of wooden scales
Travel Shares

Why I think this ASX small-cap stock is a bargain at under 80 cents

I believe this small company has a lot of growth potential.

Read more »

a passenger plane is on the tarmac with passenger shute attached with a view of the surrounding land and sunset in the background.
Travel Shares

2 things dragging the Qantas share price lower on Thursday

It's a crummy day for the Flying Kangaroo.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Why is the Qantas share price having such a tough time today?

Is this government news affecting Qantas?

Read more »

A woman sits crossed legged on seats at an airport holding her ticket and smiling.
Travel Shares

Can the Qantas share price be a top performer again in 2025?

How high can Qantas shares soar?

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today
Travel Shares

Uh-oh! Are Qantas shares now 'highly overvalued'?

A leading expert forecasts headwinds for Qantas shares in 2025. But why?

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Is this a good time to buy Qantas shares?

Can we still get onboard with this flying stock?

Read more »