Web Travel Group Surges 22% in TTV, Eyes Record FY26 EBITDA
Web Travel Group has reported a robust first half for FY26 with bookings and transaction values significantly up, setting the stage for a record EBITDA year despite slight margin pressures.
- 1H26 bookings increased 18% to 5.07 million
- Total Transaction Value (TTV) rose 22% to $3.17 billion
- FY26 TTV margins expected at least 6.5%, slightly below FY25
- Sale of DMC business impacts margin but portfolio mix improves
- Company targets record EBITDA for FY26
Strong Growth in Bookings and Transaction Value
Web Travel Group Limited (ASX, WEB) has delivered a compelling performance in the first half of fiscal year 2026, with its WebBeds business reporting a significant increase in both bookings and total transaction value (TTV). Bookings climbed 18% to 5.07 million, while TTV surged 22% to $3.17 billion compared to the same period last year. This growth underscores the company's expanding footprint in the competitive online travel services sector.
Regional Momentum and Portfolio Dynamics
The company’s TTV growth was broad-based across key regions, with the Americas up 27%, Europe and Asia Pacific both rising by 12%, and the Middle East & Africa holding steady. These figures reflect strong demand recovery and effective market penetration strategies. However, the sale of the Distribution Management Company (DMC) business in March 2025, which previously contributed around 0.2% to TTV margins, has slightly tempered margin expansion.
Margins and Profitability Outlook
Despite the margin impact from the DMC divestment and some portfolio mix changes, Web Travel Group expects FY26 TTV margins to remain robust at a minimum of 6.5%, just below the 6.7% achieved in FY25. The company remains confident in its operational efficiency and revenue quality, targeting a record EBITDA for the full year. This ambition signals strong cost control and potentially higher-value bookings driving profitability.
Looking Ahead
Investors will be keenly awaiting the detailed half-year results scheduled for release on 25 November 2025, which will provide further clarity on segment performance, margin drivers, and the impact of strategic portfolio adjustments. The preliminary update positions Web Travel Group as a resilient player in the travel sector, capitalizing on market recovery and evolving customer demand.
Bottom Line?
Web Travel Group’s strong first half momentum sets the stage for a potentially record-breaking FY26, but margin pressures warrant close monitoring.
Questions in the middle?
- How will the sale of the DMC business affect long-term margin sustainability?
- What specific portfolio mix changes are influencing TTV margins?
- Can Web Travel Group maintain its growth trajectory amid evolving travel market conditions?
