Web Travel Group Accelerates TTV Growth 22%, Eyes $10B by 2030
Web Travel Group reported a 22% rise in Total Transaction Value to $4.9 billion for FY25, while underlying EBITDA dipped 13% amid margin pressures and strategic investments. The company completed a $150 million share buyback to mitigate dilution risks and is optimistic about a strong FY26 start.
- FY25 TTV up 22% to $4.9 billion with strong regional growth
- Underlying Group EBITDA declined 13% to $120.6 million
- $150 million on-market share buyback completed to reduce convertible note dilution
- TTV margins stabilized at 6.7%, expected to hold at 6.5% medium term
- Robust FY26 start with TTV up 37% and bookings up 29%
Strong Growth Amid Margin Challenges
Web Travel Group Limited (ASX:WEB) has delivered a solid performance for the fiscal year ending March 31, 2025, with Total Transaction Value (TTV) climbing 22% to nearly $4.9 billion. This growth, led by the WebBeds B2B business, underscores the company’s expanding footprint, particularly in the Asia-Pacific and Americas regions, which now represent over half of TTV compared to less than a third pre-pandemic.
However, this expansion came with margin pressures. The company’s TTV margins declined from 8.2% in FY24 to 6.7% in FY25, attributed to a combination of company-driven factors and shifting market dynamics. Despite this, management expects margins to stabilize around 6.5% in the medium term, signaling a cautious but confident outlook.
Strategic Investments and Capital Management
Underlying Group EBITDA fell 13% to $120.6 million, reflecting a 15% increase in expenses driven by investments in headcount and technology aimed at optimizing supply sources. The company is actively increasing directly contracted hotel inventory and reengineering supply agreements to enhance profitability.
Capital management has been a key focus post-demerger from Webjet Group Limited in September 2024. Web Travel Group completed a $150 million on-market share buyback in March 2025 to address approximately 88% of potential dilution from $250 million convertible notes maturing in April 2026. Additionally, the company boosted its revolving credit facility from $40 million to $200 million to ensure liquidity should note holders opt for repayment over conversion.
Looking Ahead: Ambitious Targets and Early Momentum
Web Travel Group’s leadership is bullish on the future. Managing Director John Guscic highlighted an exceptional start to FY26, with TTV up 37% and bookings rising 29% year-on-year. The company is targeting record EBITDA for FY26 and has set an ambitious goal of reaching $10 billion in TTV by FY30, aiming for EBITDA margins around 50%.
While the company did not declare a dividend for FY25, the focus remains on reinvestment and scaling the business. The divestment of non-core assets, such as the DMC business, and ongoing restructuring costs have weighed on statutory profits but are part of a broader strategy to streamline operations and enhance long-term value.
Overall, Web Travel Group appears refocused and recalibrated post-demerger, with a clear strategy to leverage its market-leading growth and operational efficiencies to drive significant earnings growth in the coming years.
Bottom Line?
Web Travel Group’s FY25 results set the stage for ambitious growth, but margin pressures and convertible note risks warrant close investor attention.
Questions in the middle?
- How effectively will Web Travel Group’s supply optimization initiatives translate into margin expansion?
- What will be the impact on the share price and liquidity if convertible note holders opt for repayment in 2026?
- Can the company sustain its strong FY26 momentum to meet its $10 billion TTV target by FY30?
