Web Travel Group Ltd (ASX: WEB) shares are more than 4% higher after the company announced a strong set of full year numbers, with net profit more than tripling from the previous year.
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Numbers higher across the board
In a statement to the ASX, the company said that total transaction volume (TTV) was up 20% compared with FY25 to $5.8 billion, driven by "significant organic growth in the Americas and Europe" while TTV margins improved 0.1% to 6.8%.
Revenue increased 20% to $394.1 million while net profit was up from $11.1 million in FY25 to $35.5 million.
Bookings in the company's WebBeds division were up 18% year on year driven by strong results in the Americas and Europe, while the Asia Pacific (APAC) and Middle East and Africa (MEA) divisions were both impacted by the conflict in the Middle East.
Web Travel Group Managing Director John Guscic said:
FY26 was a terrific year for the WebBeds business. We continue to win share, TTV margins continue to improve, and our scalable business model is delivering higher operating leverage. WebBeds' EBITDA margin remains world class. We have been able to maintain our market-leading TTV growth rate with no margin pressure. WebBeds delivered $1 billion incremental TTV1 this year at an improved margin compared with last year, demonstrating disciplined growth and margin resilience. This impressive result was delivered in an environment where the conflict in the Middle East placed downward pressure on Bookings and TTV in March 2026. The key driver of our FY26 result was the outstanding performance of our Americas business which saw Bookings 41% higher than the previous year. Europe also performed well with Bookings up 19%.
Mr Guscic said while APAC and MEA were both impacted by the Middle East conflict they both increased bookings during the period.
He added:
We continue to gain share by expanding our existing portfolio, winning new customers, enhancing supply sources, extending geographic reach and improving conversions. This is a direct result of the skill, dedication and focused execution from our teams around the world.
Mr Guscic said the company continued to see exciting growth opportunities despite the uncertainty in the market.
Strong start to the year
On the outlook, for the first eight weeks of FY27 bookings were up 6%.
TTV was up 4% in constant currency and down 6% in Australian dollars compared to the same period last year. Americas and Europe continue to deliver growth but the conflict continues to have a material impact on MEA and, to a lesser extent, APAC. Importantly we continue to expect FY27 TTV margins of at least 6.5%, reflecting ongoing pricing discipline and resilience in the underlying business model.
Web Travel Group Chair Roger Sharp said the company was well-placed from a balance sheet perspective should any attractive M&A opportunities arise.
He said given the uncertainty in the market the company was taking a prudent approach to capital management.
Today, Web Travel Group shares have opened 4% higher. The company is valued at $861.3 million.
