Web Travel Group Confident with $90 Million Buy-Back Amid 1H27 Growth Outlook
Web Travel Group projects solid revenue and margin gains for 1H27 despite currency headwinds, backing its outlook with a substantial $90 million share buy-back.
- 1H27 revenue expected to rise 11-15% in euros
- TTV margin to improve to approximately 6.7%
- Underlying EBITDA forecast between AUD 80-86 million
- Currency headwinds estimated at 9% impacting EBITDA
- On-market share buy-back program up to AUD 90 million
Guidance Highlights Steady Margin and Revenue Growth
Web Travel Group (ASX:WEB) is forecasting a robust first half of FY27, with its WebBeds platform expected to grow revenue by 11-15% in euros and lift total transaction value (TTV) margins to around 6.7%, up from 6.5% in the prior corresponding period. The group’s underlying EBITDA is projected to land between AUD 80 million and AUD 86 million, despite facing currency headwinds estimated at roughly 9% compared to 1H26. Cash conversion is anticipated to exceed 100%, reflecting strong operational cash flow generation.
Board Signals Confidence with $90 Million Share Buy-Back
In a clear sign of confidence, the company’s board has announced an on-market share buy-back program capped at AUD 90 million, citing a disconnect between the current share price and the company’s trading performance, cash generation, and medium-term earnings outlook. The buy-back will be funded from existing cash reserves, following the redemption of convertible notes earlier in April, while preserving the flexibility to pursue growth investments. The program is expected to commence in August 2026 with shares repurchased at prices no more than 5% above the five-day volume weighted average price.
Operational Leverage Driven by AI and Optimisation
Managing Director John Guscic highlighted that 1H27 marks the third consecutive six-month period where TTV margins have improved, attributing this to optimisation initiatives and AI-led investments made during FY26. These efforts are delivering operating leverage and underpinning the company’s focus on maximising shareholder value. The company plans to provide a trading update at its AGM on 27 August 2026, which will offer further clarity on performance and outlook.
Navigating Currency Headwinds and Market Conditions
The company’s guidance factors in a weaker Australian dollar against the euro, with an assumed AUD/EUR conversion rate of approximately 61 cents for 1H27 compared to 56 cents in 1H26. This currency movement presents a headwind that tempers EBITDA growth but has not deterred the company’s positive stance. This cautious optimism builds on the momentum from FY26, when Web Travel Group posted strong revenue and EBITDA growth, alongside a significant redemption of convertible notes that bolstered its liquidity position.
Bottom Line?
The share buy-back signals strong board conviction in Web Travel Group’s financial strength amid steady growth and currency challenges.
Questions in the middle?
- How will Web Travel Group manage currency volatility beyond 1H27?
- What impact will AI investments have on margins in the medium term?
- Will the buy-back program influence investor sentiment and share price momentum?
