It was supposed to be a big day for Web Travel Group Ltd (ASX: WEB) stock on Wednesday.
But instead, the global business to business travel technology company's shares have been suspended from trade.
What's going on?
Web Travel was supposed to be releasing its half year results for FY 2025 this morning.
This will be the first set of results the company has released since spinning off its Webjet Group (ASX: WJL) online travel booking business in September.
A recent market update revealed that Web Travel was expecting WebBeds Total Transaction Value (TTV) and Bookings to be significantly ahead of the prior corresponding period.
However, its underlying EBITDA margins are expected to fall to ~44% due to weakness in Europe.
This reflects WebBeds' TTV/revenue margins being impacted by the collapse of FTI Group, the Paris Olympics, and the European Football Championship. In addition, overall margins were further impacted by customer financial incentive agreements in place, which are now under review.
As a result, first half TTV/revenue margins are expected to be ~6.4%, down from its previous guidance of ~7%.
But investors will have to sit tight and find out what Web Travel reports. That's because its stock is expected to be offline potentially until the end of the month.
Why is Web Travel stock suspended?
On Monday, Web Travel requested a trading halt until this morning. Its request stated the following:
The trading halt is requested to enable Web Travel Group to manage its disclosure obligations in relation to potential adjustments to its prior year financial statements. This is not expected to impact the company's 1H25 results and outlook.
However, it has now become apparent that the company needs much longer to sort out its accounts.
This morning, Web Travel requested that its stock being suspended until 21 November while its auditor works through its accounts. Though, it has warned that it could need as long as 29 November to get all its ducks in a row. It said:
WEB Travel Group advises that the 1H25 results release and webcast briefing scheduled for today, Wednesday 20 November 2024 will be postponed. Web Travel Group is working with its auditor Deloitte to finalise the 1H25 financial statements and expects to be in a position to lodge its Appendix 4D for the half year ended 30 September 2024 by no later than the commencement of trading on 29 November 2024.
All eyes will be on WEB Travel stock when it returns to the ASX boards. Stay tuned for that.
