Highlights

  • WebBeds Total Transaction Value rose 20% to $5.8 billion in FY26, with the Americas region recording Bookings growth of 41% year-on-year
  • WebBeds EBITDA increased 24% to $172.7 million, with EBITDA Margin expanding to 43.8% from 42.3% in FY25
  • For the first eight weeks of FY27, Bookings are up 6% but TTV is down 6% in Australian dollar terms due to currency headwinds, with the Middle East conflict continuing to weigh on MEA and parts of APAC

 

Web Travel Group Limited (ASX:WEB) has delivered a financial year that its management described as 'terrific' — and the numbers provide reasonable justification for that assessment. The company's wholesale accommodation Business, WebBeds, posted year-on-year growth across every key metric for the 12 months to 31 March 2026: Bookings up 18%, Total Transaction Value (TTV) up 20%, Revenue up 20%, and EBITDA up 24%. These are not the results of a single fortunate quarter but a sustained commercial machine that appears to be gaining rather than losing velocity.

The WEB share price rose modestly on the back of the results, consistent with a market that had largely anticipated a creditable performance. The stock has delivered positive returns over recent months, though the more cautious near-term trading commentary in the results has introduced some uncertainty around whether the FY26 momentum can be sustained through FY27.

WEB shares were trading 2.73% higher at AUD 2.44 per share during morning trading hours on 27 May 2026.

WebBeds Performance in Detail

WebBeds, the group's core business and the primary driver of Shareholder value, generated Bookings of 9.9 million in FY26, up from 8.4 million in FY25. TTV reached $5.8 billion compared to $4.9 billion in the prior year. Revenue grew to $394.1 million from $328.4 million, and EBITDA expanded from $138.8 million to $172.7 million.

The TTV margin for FY26 was 6.8%, up from 6.7% in FY25. On a like-for-like basis — adjusting for the DMC business sold in April 2025 — the FY25 TTV margin was 6.6%, making the underlying improvement more pronounced than the headline figures suggest. WebBeds expenses grew 17% to $221.4 million, which management attributed to CPI increases, the reinstatement of bonuses, and Investment in hotel contracting resources. In Euro Functional Currency terms, expenses grew a more modest 10%.

The standout regional stories were the Americas and Europe. The Americas recorded Booking growth of 41% year-on-year, a figure that reflects both organic Market Share gains and the quality of WebBeds' Supply relationships in that region. Europe grew Bookings by 19%. These two regions more than offset softness in Asia-Pacific and Middle East & Africa, both of which were materially affected by the escalation of conflict in the Middle East in the period around March 2026.

EBITDA Margin at 43.8%: The Operating Leverage Story

One of the more compelling aspects of the WebBeds business model is the degree to which revenue growth converts into Earnings growth. With expenses growing at 17% against revenue growth of 20%, the company demonstrated operating leverage that pushed EBITDA margins to 43.8% — a 150 basis point improvement on FY25. Managing Director John Guscic highlighted that WebBeds delivered $1 billion of incremental TTV in FY26 at an improved margin, which illustrates that growth is not being purchased at the expense of profitability.

At the group level, after deducting corporate overheads of $24.3 million, underlying Group EBITDA grew 23% to $148.4 million. Underlying NPAT rose 8% to $85.9 million, with the more modest NPAT growth reflecting the first full year of standalone costs since the company's demerger. Underlying EPS grew 16% to 23.8 cents per share.

Cash Conversion and Capital Position

Cash generation was a material positive in FY26, with $132.4 million in cash from operations representing 107% cash conversion — a significant improvement on the 73% reported in FY25. This improvement underscores the capital-light and scalable nature of the WebBeds wholesale model, where growth in Bookings and TTV does not require proportional increases in fixed capital.

The group also redeemed $250 million of Convertible Notes post the period end, resulting in pro forma Liquidity of approximately $500 million, comprising $398.1 million in cash and $100 million in undrawn revolving Credit Facility. This liquidity position provides the business with considerable financial flexibility heading into what management has characterised as an uncertain trading environment.

FY27 Early Trading: Growth Continues But Currency and Conflict Bite

For the first eight weeks of FY27, Bookings are up 6% compared to the same period last year, and TTV is up 4% in constant currency terms. However, in Australian dollar terms, TTV is down 6%, reflecting unfavourable currency movements. The Middle East conflict continues to have a material impact on MEA and, to a lesser extent, APAC, with management noting that the duration and broader macroeconomic implications remain uncertain.

Despite this caution, management has maintained guidance that FY27 TTV margins will be at least 6.5%. Americas and Europe continue to deliver growth, providing a counterweight to the regional softness. The Long-term Growth trajectory in Bookings and TTV is expected to remain consistent with historical trends, though the near-term path will be determined in part by the resolution or otherwise of the geopolitical situation.

Competitive Position and Market Share

Web Travel Group's Competitive Advantage in the wholesale accommodation sector lies in its ability to aggregate hotel supply and distribute it efficiently to travel agents and online travel agencies globally. The company's strategy of expanding its hotel portfolio, winning new customer accounts, extending geographic reach, and improving platform conversion rates has underpinned multi-year market share gains. With a TTV of $5.8 billion, WebBeds sits at a scale that affords pricing and supply advantages that are difficult for smaller participants to replicate.

The continued growth of the Americas business — now clearly the group's highest-growth region — reflects both market conditions and the specific competitive execution of the WebBeds team in that geography. Management has indicated that further share gains remain the primary growth lever.

Conclusion

Web Travel Group enters FY27 from a position of financial health and operational confidence, having delivered a year in which every key metric improved. The company's scalable wholesale model, demonstrated margin discipline, and high cash conversion place it in a differentiated position among ASX-listed travel stocks. The near-term challenge is navigating currency headwinds and the ongoing impact of the Middle East conflict on two of its four operating regions. How quickly MEA and APAC recover — and whether the Americas and Europe can sustain their momentum in the interim — will determine whether FY27 represents a consolidation year or a continuation of FY26's growth trajectory.