Web Travel Group Delivers Record FY26 as WebBeds Growth and Cash Generation Strengthen

About WEB Travel Group Ltd

WEB Travel Group Ltd (ASX: WEB) operates WebBeds, a global B2B digital travel marketplace connecting hotels and other suppliers with travel buyers around the world. WebBeds provides hotel inventory, pricing, distribution, booking and settlement infrastructure to travel wholesalers, online travel agents, retail travel agents, corporate travel agents, airlines, loyalty platforms and other travel sellers. The platform connects more than 500,000 hotels across over 190 countries with more than 50,000 travel buyers across 140 source markets.

Record result showed strong execution

The FY26 result showed a business continuing to scale profitably. WebBeds bookings increased 18 per cent to 9.9 million, while TTV increased 20 per cent to $5.8 billion. Revenue also rose 20 per cent to $394.1 million, supported by higher volumes and continued improvement in TTV margins.

Importantly, this growth was achieved without margin compromise. WebBeds’ revenue-to-TTV margin improved to 6.8 per cent from 6.7 per cent, while the second-half TTV margin reached 7.1 per cent. EBITDA margin also improved to 43.8 per cent from 42.3 per cent. This suggests WebBeds is not simply buying growth through weaker pricing, but converting higher transaction volumes into stronger profitability.

Underlying Group EBITDA increased 23 per cent to $148.4 million after corporate overheads, while underlying NPAT increased 8 per cent to $85.9 million. The lower NPAT growth rate compared with EBITDA reflects the first full year of standalone costs after the demerger, higher net interest and finance costs, and the normalisation of the group’s cost structure.

WebBeds remains the core growth engine

WebBeds was the clear driver of the result. EBITDA increased 24 per cent to $172.7 million, reflecting operating leverage across the platform. Expenses increased 17 per cent to $221.4 million, driven by CPI increases, reinstated bonuses and investment in hotel contracting resources, but revenue and earnings still grew faster than costs.

This operating leverage is central to the investment case. As more suppliers and buyers use the platform, WebBeds can process higher booking volumes at relatively lower marginal cost. The group’s technology platform handles more than 8.5 billion searches per day on average, while 23.8 million room nights were booked through the marketplace in FY26.

The business also benefits from a network effect. More travel buyer demand makes WebBeds more valuable to hotels, which helps attract more content and better pricing. That richer supply then attracts more buyers, supporting further growth. This model gives WebBeds scale advantages in a fragmented global bedbank market.

Americas and Europe led regional growth

The strongest regional performance came from the Americas and Europe. Americas bookings increased 41 per cent, driven by new client wins and market share gains from existing clients. Europe bookings increased 19 per cent, supported by improved optimisation of product offerings and pipeline wins across the UK, Central Europe and Eastern Europe.

Asia Pacific and Middle East & Africa were more affected by geopolitical disruption. The escalation of conflict in the Middle East placed downward pressure on bookings and TTV in March 2026, with higher cancellations and shorter-stay bookings. APAC still delivered bookings growth of 4 per cent, while MEA bookings increased 2 per cent, but both regions underperformed compared with the Americas and Europe.

This regional mix matters because WebBeds’ global footprint provides resilience. Weakness in one market can be partly offset by stronger performance elsewhere, which is especially valuable in travel, where demand can shift quickly due to conflict, currency movements, air capacity and consumer confidence.

Cash generation remained a major strength

Web Travel Group finished FY26 with a strong balance sheet and substantial liquidity. Cash from operations was $132.4 million, and cash conversion improved to 107 per cent from 73 per cent in FY25. Cash at 31 March 2026 was $448.1 million.

The group also increased its revolving credit facility during the year, giving it flexibility around the redemption of its $250 million convertible notes after year-end. Following that redemption, pro forma liquidity was around $500 million, including $398.1 million of cash and a $100 million undrawn revolving credit facility.

No dividend was declared for FY26. Capital management remains focused on growth, both organic and inorganic, while maintaining a conservative balance sheet in an uncertain macro environment.

AI adds another opportunity

WebBeds is also positioning itself for an AI-enabled travel market. The core point is that AI agents may change how travel is searched and booked, but they still need structured, reliable and transaction-ready supply. WebBeds already provides inventory access, rates, commercial terms, settlement and service infrastructure, which could make it a valuable layer behind emerging AI-led travel procurement.

AI initiatives are also being used internally to improve efficiency, optimise pricing and support better conversion. Together with automation and scale, this should support further operating leverage over time.

Outlook

Web Travel Group enters FY27 with strong momentum, but the trading backdrop remains mixed. In the first eight weeks of FY27, bookings were up 6 per cent, TTV was up 4 per cent in constant currency and down 6 per cent in Australian dollars. Americas and Europe continued to grow, while MEA and parts of APAC remained affected by Middle East instability.

The main positives are market share gains, improved margins, strong operating leverage, high cash conversion and significant liquidity. The main risks are geopolitical disruption, currency movements, cancellations, weaker travel demand and execution on growth opportunities. Overall, Web Travel Group appears well positioned, with WebBeds continuing to scale as a profitable global B2B travel marketplace.