WEB Travel Posts 22% TTV Growth and $94M EBITDA in First Half FY26
WEB Travel Group has reported a stellar first half of FY26, posting a 22% rise in Total Transaction Value to $3.2 billion alongside strong EBITDA growth, signaling robust momentum ahead of full-year results.
- Total Transaction Value (TTV) surged 22% to $3.2 billion
- WebBeds EBITDA increased 21% to $94 million
- Underlying Group EBITDA rose 17% to $81.7 million
- Strong liquidity position with $481 million cash and $699 million total available
- FY26 EBITDA guidance set between $147 million and $155 million
Robust Growth Amid a Competitive Landscape
WEB Travel Group Limited (ASX, WEB) has delivered a commanding performance in the first half of FY26, underscoring its position as a leading player in the online travel services sector. The company reported a 22% increase in Total Transaction Value (TTV) to $3.2 billion, driven by a notable 18% rise in bookings. This growth was particularly pronounced in the Americas, one of WEB’s top three regions, which outpaced market averages and contributed significantly to the company’s expanding footprint.
Margin Stability and Profitability Gains
Despite the rapid expansion, WEB Travel Group managed to maintain and slightly improve its profitability metrics. The WebBeds segment, the core of the company’s operations, saw EBITDA climb 21% to $94 million, with an EBITDA margin edging up to 45.9%. The underlying Group EBITDA rose 17% to $81.7 million after accounting for corporate overheads. Notably, the TTV margin stood at 6.5%, surpassing prior guidance and reflecting the company’s effective margin optimisation strategies, including the divestment of lower-margin businesses.
Strategic Investments and Capital Strength
WEB’s management highlighted planned investments in hotel contracting resources as a key driver for sustained growth, anticipating meaningful contributions to results in FY27. The company’s capital position remains robust, with $481 million in cash and $699 million in total available liquidity, bolstered by an increased undrawn revolving credit facility of $200 million. This financial flexibility positions WEB well to manage upcoming obligations, including the $250 million convertible notes due in April 2026.
Outlook and Market Positioning
Trading momentum has continued into the second half of FY26, with TTV up 23% in the first seven weeks compared to the prior year. WEB Travel Group reaffirmed its full-year underlying EBITDA guidance of $147 million to $155 million, setting the stage for another record performance. The company remains focused on its ambitious $10 billion TTV target by FY30, leveraging its scalable platform and expanding global marketplace to capture increasing market share.
Managing Director John Guscic emphasised that the growth is a result of strategic execution rather than macroeconomic tailwinds, highlighting the company’s ability to win new clients and enhance supply and geographic reach. This disciplined approach underpins WEB’s confidence in delivering profitable growth while navigating a dynamic travel industry landscape.
Bottom Line?
WEB Travel Group’s strong 1H26 results set a high bar, but upcoming debt maturities and increased expenses will test its growth sustainability.
Questions in the middle?
- How will WEB manage the $250 million convertible notes redemption or conversion in April 2026?
- What impact will increased investments in hotel contracting have on margins beyond FY26?
- Can WEB sustain its above-market growth rates amid evolving global travel dynamics?
