EBITDA dips for Web Travel Group for H12025.
In the first financial release since formally demerging from the Webjet’s consumer arm, Web Travel Group (formerly WebBeds) posted an EBITDA of $65.3 million for H125, down on the $80.3 million recorded in the corresponding half last year.
Total Transaction Value (TTV) grew by 25% to $2.6 billion, and is on track to deliver $5 billion for the FY25 period.
While TTV increased, the margin of the key metric was adversely impacted by the geographic, customer and supply mix.
MD John Guscic said the company had “underestimated” the TTV margin decline in Europe, as well as incentive payments paid during August, which were $7.5 million higher than anticipated.
Revenue held steady against the previous corresponding period, dipping slightly from $175.1 million to $170.4 million.
Rising expenses also impacted the bottom line, with Web Travel Group flagging a needed increase in staffing and technology to sustain growth ambitions.
The company expects FY25 EBITDA to be in the range of $117-122 million.
Web Travel Group also intends to conduct an on-market share buyback up the maximum value of $150 million in order to maximise shareholder value and reduce potential dilution of from $250 million worth of convertible notes due in 2026.
More details in today’s issue of Travel Daily.