Web Travel Group's 1H25 financial performance

Web Travel Group (ASX:WEB) has released its financial results for the first half of the fiscal year 2025. The company reported a Total Transaction Value (TTV) of $2.6 billion, indicating a 25% increase from the previous period. Revenue rose by 1% to $170.4 million, while underlying EBITDA saw an 11% decline. The report also highlights the successful demerger of Webjet Group Limited, allowing Web Travel Group to focus on its B2B business under WebBeds.

Web Travel Group's strategic outlook post-demerger

Web Travel Group Limited has focused on strengthening its B2B operations through WebBeds following the demerger of Webjet Group Limited. The company has experienced robust growth in TTV and bookings, aiming for $5 billion in TTV for FY25 and targeting $10 billion by FY30. Despite challenges in TTV margins, the company expects medium-term stabilization. Web Travel Group plans to maintain a 25% TTV growth rate for FY25 and stabilize EBITDA margins around 50% by FY26. The company is strategically positioned to improve its portfolio, acquire new customers, and enhance conversion rates. With significant cash reserves and strategic investments in technology, Web Travel Group is well-prepared to achieve its long-term growth objectives.

Executive insights on Web Travel Group's performance

Web Travel Group's focus is on the B2B market with WebBeds, which is a global B2B travel marketplace servicing the travel trade. The company has seen significant growth in booking volumes and TTV, though at lower margins. WebBeds now handles over 500,000 hotels in more than 16,000 destinations worldwide. Significant investments have been made in headcount and technology to support growth, with expected expense growth in line with revenue growth by FY26.