Web Travel share price jumps 14% on half year results

Here's what this travel technology company reported this morning.

| More on:
A smiling woman looks at her phone as she walks with her suitcase inside an airport.

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

The Web Travel Group Ltd (ASX: WEB) share price is pushing higher on Wednesday morning.

At the time of writing, the travel technology company's shares are up 14% to $4.82.

This follows the release of the WebBeds owner's first half-year results since the demerger of its Webjet Group (ASX: WJL) online travel agency.

Web Travel share price jumps on results day

  • Bookings up 23% to 4.3 million
  • Total transaction value (TTV) up 25% to $2.59 billion
  • Revenue up 1% to $170.4 million
  • Underlying EBITDA down 8% to $70 million

What happened during the half?

For the six months ended 30 September, Web Travel reported a 1% increase in revenue to $170.4 million. This reflects weaker margins, which largely offset strong booking and TTV growth over the prior corresponding period.

Commenting on the company's performance, managing director John Guscic said:

Following a record FY24, WebBeds' first two months of trading in 1H25 continued to reflect the previous 6-month trading conditions. In the period of June and July, TTV margins declined in Europe. The decline coincided with the collapse of FTI Group, the Paris Olympics and European football championships.

We underestimated this decline and the extent of changing market conditions and customer mix, and underlying margins did not recover in August as anticipated.

We also underestimated the incentive payments during August (at the time of the AGM) which were $7.5 million higher than planned, representing a decline of 0.3% of the TTV margin in 1H25.

Combined with an 8% increase in expenses, this ultimately led to underlying EBITDA falling 8% to $70 million and underlying group net profit after tax coming in at $52.5 million.

Outlook

The company revealed that its top line growth has continued in the second half.

For the first seven weeks of trading for the second half, TTV is up 23% and TTV margins were at 6.5% in October.

Based on current trading, management is expecting FY 2025 EBITDA to be between $117 million to $122 million.

Looking further ahead, Guscic advised that he expects the company's margins to recover next year. He said:

In the universe of global publicly traded companies, WebBeds remains one of the fastest organically growing travel brands. The business is highly scalable and efficiencies now in place give us confidence we will return to our c. 50% EBITDA margin target in FY26.

The Web Travel share price is up 20% since this time last month.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

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 Earnings Results

A man in shirt and tie uses his mobile phone under water.
Share Market News

2 ASX 200 shares sinking on Thursday on earnings results

Investors are bidding down these ASX 200 shares today. But why?

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

2 ASX 300 shares rocketing 6% today

Investors love what these two stocks just reported.

Read more »

A man raises his reading glasses in a look of surprise.
Earnings Results

South32 share price higher on 577% profit jump

This mining giant's profits have surged during the first half.

Read more »

A couple lying down and laughing, symbolising passive income.
Earnings Results

Temple & Webster share price jumps 17% to record high on stunning half-year results

It was another impressive six months for this high flying stock.

Read more »

smiling worker stands before power generator technology
Earnings Results

Origin Energy share price charging higher on growing profits

Origin Energy shares are racing ahead of the benchmark on Thursday.

Read more »

Gold bars and Australian dollar notes.
Earnings Results

Northern Star share price lifts off on record half-year dividend

Up 39% in a year, ASX investors are bidding up Northern Star shares again on Thursday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Earnings Results

Pro Medicus share price storms higher on record-breaking results

Investors are cheering on this tech company's latest results.

Read more »

CA woman sits on her bed wailing and crying with a wine bottle in one hand and a glass in the other.
Earnings Results

Treasury Wine share price sinks 7% on weak FY25 guidance

The Penfolds owner has released its half year results. What did it report?

Read more »