The Web Travel Group Ltd (ASX: WEB) share price is in focus today after the company released its 1H27 guidance, highlighting expected underlying EBITDA between $80 million and $86 million, alongside plans for a $90 million on-market share buy-back.
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What did Web Travel Group Ltd report?
- WebBeds 1H27 TTV margin forecast at approximately 6.7%, up from 6.5% in 1H26
- WebBeds 1H27 revenue (in EUR) expected to increase 11–15% compared to 1H26
- Group 1H27 underlying EBITDA anticipated between AUD 80 million and AUD 86 million
- Cash conversion forecast to exceed 100% for the half
- On-market share buy-back to a maximum of $90 million announced
What else do investors need to know?
Web Travel Group's Board believes the current share price does not reflect the company's trading performance, cash generation, or medium-term outlook. As a result, the company has announced a substantial on-market buy-back to enhance shareholder value.
The buy-back, scheduled to begin in August 2026, will use existing cash reserves and will not affect the business's flexibility to invest in growth opportunities. Shares will be bought at no more than 5% above the five-day volume weighted average price, and up to 10% of issued capital may be repurchased without shareholder approval.
The company will provide a further trading update at its AGM on 27 August 2026.
What did Web Travel Group Limited management say?
The company's managing director, John Guscic, said:
Our WebBeds business continues to deliver TTV growth with enhanced margin. 1H27 is on track to be the third consecutive 6-month period where TTV margins have improved over the prior corresponding period. The optimisation initiatives and investments we made in FY26 are delivering and AI-led investments continue to drive our operating leverage.
The Company is focused on maximising shareholder value. We have strong liquidity following redemption of the convertible notes in April and a share buy-back demonstrates the Board and management's confidence in the Company's financial strength and outlook.
What's next for Web Travel Group Ltd?
Looking ahead, Web Travel Group plans to continue investing in digital and operational improvements, especially AI-driven initiatives, to support further growth and margin expansion. The share buy-back reflects both the company's ongoing business strength and management's confidence in future prospects.
Investors can expect further updates at the company's AGM and ongoing communication regarding progress with the buy-back and trading performance.
Web Travel Group Ltd share price snapshot
The Web Travel Group share price has had a tough 12 months, falling almost 40%. This compares unfavourably to the All Ordinaries index (ASX: XAO), which is up around 1.1%.
