Rising Costs and Debt Maturity Cloud Web Travel Group’s Strong Growth Story

Post-Demerger Focus on B2B Travel

Web Travel Group Limited, formerly known as Webjet Limited, has unveiled its preliminary half-year financial results for the six months ended 30 September 2025, marking its first full reporting period following the September 2024 demerger of its consumer-facing businesses. The company’s continuing operations now centre exclusively on its business-to-business (B2B) wholesale travel division, WebBeds, which has demonstrated strong momentum in a competitive global travel market.

WebBeds operates a global marketplace connecting travel suppliers with over 50,000 travel buyers worldwide, offering access to more than 500,000 hotels and a broad range of ground services. This platform has been the primary driver behind the company’s solid transactional growth in the period.

Financial Highlights and Operational Performance

The company reported a 22% increase in total transaction value (TTV) to $3.17 billion, reflecting strong booking volumes across most regions. Correspondingly, revenue rose 20% to $204.6 million, in line with the expanded transaction base. Underlying EBITDA, which excludes non-operating expenses and share-based payments, grew 17% to $81.7 million, underscoring operational leverage despite a 22% rise in operating expenses driven by inflation, reinstated bonuses, and strategic headcount investments to support growth.

However, statutory net profit after tax from continuing operations declined to $26.9 million from $42.5 million in the prior corresponding period. This reduction is attributed to increased non-operating expenses, including a $5.5 million equity-linked financial asset revaluation loss, and higher net finance costs stemming from lower interest income and increased hedging and facility fees. The maturity of $250 million Convertible Notes in April 2026, recently reclassified as current liabilities, adds an element of financial scrutiny going forward.

Balance Sheet and Liquidity

Web Travel Group maintains a robust liquidity position with $481.1 million in cash and $200 million in undrawn revolving credit facilities, supplemented by a $17.8 million overdraft facility. Trade receivables have increased in line with higher trading volumes but remain well-managed under enhanced credit policies. The company’s net tangible asset backing per share improved slightly to negative 35 cents, reflecting ongoing investments and amortisation.

The company has complied with all financial covenants attached to its borrowing facilities, including net leverage and interest coverage ratios, signaling prudent financial management amid the transition to a standalone B2B entity.

Governance and Strategic Outlook

Governance changes during the period included the appointment of two new independent non-executive directors, Melanie Wilson and Paul Scurrah, and the resignation of Brad Holman. These board adjustments align with the company’s evolving strategic focus post-demerger.

Web Travel Group has not declared any interim dividend, reflecting a conservative capital allocation stance as it invests in growth and manages debt maturity risks. The company’s management emphasizes continued expansion of the WebBeds platform and operational efficiencies to drive future profitability.