Web Travel Group owes approximately $32 million more to suppliers as of 30 Sep 2024. According to a new ASX statement, the change has now been determined not to be material to the company’s earnings and financial position.
Web Travel Group’s auditors have advised the company of a requirement to change its application of an accounting standard, in respect of the recognition of supplier liabilities, which will impact its 1H25 results.
As a result, some historical financial information is being updated and Web Travel Group expects the following impacts to be made:
- circa $2.5 million increase in EBITDA in 1H25;
- circa $1.5 million reduction in EBITDA in FY24 (net), which includes a circa $1.5 million increase in 2H24 EBIDTA and a circa $3 million reduction in 1H24 EBITDA;
- approximately $32 million decrease to retained earnings as at 31 Mar 23, reflecting adjustments related to prior years; and
- an approximate $32 million increase in the trade and other payables balance as at 30 Sep 2024.
The company’s 1H results were meant to be released today, but have now been postponed. It is expected the full results will be released on 27 Nov 2024.
More details in tomorrow’s issue of Travel Daily.