Web Travel Group Posts 21% EBITDA Growth on $3.2 Billion TTV
Web Travel Group Limited has reported a robust first half of FY26 with a 22% increase in Total Transaction Value and EBITDA growth surpassing expectations, setting a confident tone for the year ahead.
- Total Transaction Value (TTV) up 22% to $3.2 billion
- EBITDA increased 21% to $94 million, exceeding margin guidance
- Revenue rose 20% to $204.6 million, driven by Americas and APAC growth
- FY26 outlook confirms EBITDA margins between 44% and 47%, TTV margins at least 6.5%
- Completed $150 million share buyback and expanded revolving credit facility to $200 million
Strong Growth Amid Market Recovery
Web Travel Group Limited, operating through its WebBeds platform, has delivered a compelling set of results for the first half of FY26, underscoring its position as a leading global B2B travel marketplace. The company reported a 22% increase in Total Transaction Value (TTV) to $3.2 billion, alongside a 20% rise in revenue to $204.6 million. This growth outpaces market averages, particularly in the Americas and Asia Pacific regions, where new customer wins and market share gains have been significant.
EBITDA rose 21% to $94 million, reflecting not only top-line expansion but also disciplined cost management and margin stability. Impressively, TTV margins held steady at 6.5%, slightly above the company’s guidance range, signaling effective pricing and operational efficiencies despite inflationary pressures and increased investment in contracting resources.
Strategic Investments and Operational Leverage
The company’s financial discipline is evident in its cash generation, with cash reserves swelling to $481 million following a $150 million share buyback completed in the prior half. Additionally, Web Travel Group expanded its undrawn revolving credit facility from $40 million to $200 million, enhancing liquidity and financial flexibility.
Capital expenditure remained focused on technology and operational improvements, supporting the company’s ambitious target of reaching $10 billion in TTV by FY30. Investments in AI-driven pricing, enhanced content mapping, and increased contracting staff are expected to drive further conversion and margin optimisation in the coming years.
Regional Performance and Market Dynamics
Regionally, the Americas led growth with strong new client acquisitions and market share gains, while Europe and Asia Pacific also delivered above-market expansion. The Middle East and Africa region faced some headwinds due to geopolitical tensions, but the company remains optimistic about long-term opportunities there.
Web Travel Group’s scalable business model and diversified customer base, including innovative partnerships with online travel agencies, position it well to navigate ongoing market fragmentation and evolving customer preferences, such as increased demand for last-minute accommodation bookings.
Outlook and Forward Guidance
Looking ahead, the company reaffirmed its FY26 guidance with expected EBITDA margins between 44% and 47% and TTV margins of at least 6.5%. Expense growth is anticipated to be in the high single digits, reflecting continued investment balanced with cost control. Notably, no interim dividend has been declared, signaling a focus on reinvestment and balance sheet strength.
Web Travel Group also highlighted that currency fluctuations and macroeconomic factors are expected to have limited impact on second-half results. The company’s strategic initiatives, particularly in AI and contracting, are poised to support sustained growth and margin expansion into FY27 and beyond.
Bottom Line?
Web Travel Group’s strong half-year performance and strategic investments set the stage for ambitious growth, but investors will watch closely how geopolitical and currency risks unfold.
Questions in the middle?
- How will geopolitical tensions in the Middle East & Africa affect long-term growth prospects?
- What impact will increased investment in contracting staff have on FY27 margins and profitability?
- How resilient is Web Travel Group’s margin profile amid potential currency volatility and inflation?
