The Web Travel Group Ltd (ASX: WEB) share price is taking off today.
Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock – which spun off its online travel agency business Webjet Group (ASX: WJL) on 30 September – closed yesterday trading for $4.68. In morning trade on Wednesday, shares just leapt to $5.27 each, up 12.6%
After some likely profit taking, shares are changing hands for $5.25 apiece, up 12.2%.
For some context, the ASX 200 is up 0.4% at this same time.
This outperformance follows the release of Web Travel's full-year results* for the 12 months ending 31 March (FY 2025).
(*The company noted that as its demerger from Webjet Group took effect during FY 2025, the demerged businesses are included as a discontinued business and FY 2024 has been restated to reflect its pro forma Web Travel business only, WebBeds.)
Now, here's what's grabbing investor interest.
Web Travel share price takes off on surging TTV
The Web Travel share price is flying higher after the company reported that its "market leading" total transaction value (TTV) growth rate continued over the year, with strong growth reported in all its operating regions.
TTV came in at $4.87 billion for the 12 months, up 22% year on year (up 23% in constant currency).
TTV margins slipped from 8.2% in FY 2024 to 6.7% in FY 2025, with management expressing confidence that margins should stabilise at 6.5% for the medium term.
In other core financial metrics that could impact the Web Travel share price, revenue was up 1% year on year to $328 million, while underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 13% to $121 million.
And with expenses climbing 15% year on year amid planned investments in headcount and technology, net profit after tax (NPAT) was down 22.7% to $79 million.
Web Travel also completed its $150 million share buyback in March.
What did management say?
Commenting on the full year results boosting the Web Travel share price today, managing director John Guscic said, "Our significant TTV growth continued unabated during the year."
Guscic continued:
At almost $5 billion, TTV is nearly double what it was before the pandemic, with our key growth markets of Asia-Pacific and the Americas now accounting for 53% of TTV, up from 31% pre pandemic… WebBeds' TTV growth rate is the highest of the global travel companies and at 42%, EBITDA margins remain world class.
Addressing the company's margin erosion in FY 2025, Guscic added:
We are confident TTV margins will be at least 6.5% for the medium term. Company-driven factors in the first half have been addressed and we are actively looking for opportunities to increase margins. Our focus is now on optimising supply mix.
Now what?
Looking to what could impact Web Travel shares in the year ahead, Guscic said, "We have had an exceptional start to FY26 trading with TTV up 37% and Bookings up 29% compared to the same period last year."
He added, "We are targeting record EBITDA in FY26 and remain committed to delivering $10 billion TTV in FY30 at circa 50% EBITDA margins."
Web Travel share price snapshot
With today's intraday lift factored in, the Web Travel share price is up 14% in 2025.
