Web Travel Group's financial performance in FY25

Web Travel Group (ASX:WEB) has released its financial results for the first half of FY25, ending September 30, 2024. The company posted a 25% increase in Total Transaction Value (TTV) to $2.6 billion. However, underlying Group EBITDA saw an 8% decrease to $70 million due to higher expenses and lower TTV margins. The firm has also completed its demerger with Webjet Group Limited.

Web Travel Group's strategic initiatives and future outlook

Web Travel Group has announced a significant 25% growth in TTV, reaching $2.6 billion in the first half of FY25. Despite the growth, the company experienced an 8% drop in underlying Group EBITDA, affected by increased expenses and lower TTV margins due to various external factors. The demerger with Webjet Group Limited has allowed Web Travel Group to concentrate on its B2B operations through WebBeds. The company has ambitious targets, aiming for a $5 billion TTV in FY25 and $10 billion by FY30. Future projections include a FY25 EBITDA between $117 and $122 million, with plans for a $150 million share buy-back starting December 2024. The company remains focused on achieving a 50% EBITDA margin by FY26, despite challenges in maintaining TTV margins.

Executive insights on Web Travel Group's performance

We underestimated the decline in TTV margins and the need for revised market trend visibility. Nonetheless, we are confident in achieving our long-term EBITDA margin target of 50% by FY26.