Web Travel Group shares (ASX: WEB) gained 12.39% today, closing at $5.26 after the company released its full-year results for FY2025 (the 12 months ending March 31, 2025). The impressive rally made WEB the top performer among ASX 200 stocks on the day, significantly outpacing the broader market’s 0.4% gain.

Today’s 12.39% gain extends Web Travel’s year-to-date performance to 14%, welcome news for holders after a disappointing back half of last year. The company’s results were described as “relatively positive” and “broadly ahead of consensus expectations” by market commentators, explaining the enthusiastic investor response despite the mixed financial metrics.

  • Total Transaction Value (TTV) increased by 22% to $4.87 billion
  • Revenue rose marginally by 1% to $328.4 million
  • Underlying EBITDA declined by 13% to $120.8 million
  • Underlying net profit decreased by 22% to $79.2 million

The strong performance comes after the company’s strategic restructuring last year, which included spinning off its online travel agency business, Webjet Group (ASX: WJL), on September 30, 2024.

Markets appear to be focusing on the company’s strong TTV growth trajectory and management’s confident outlook rather than the short-term profit decline, suggesting optimism about Web Travel’s positioning in the global travel market recovery. Another factor driving enthusiasm was Web Travel’s strategic positioning in high-growth markets. Management highlighted that the company’s TTV is now nearly double pre-pandemic levels, with key growth markets in Asia-Pacific and the Americas now accounting for 53% of total TTV, up from 31% before the pandemic.

Managing Director John Guscic emphasized the company’s market-leading position, and outlook with comments that “TTV growth rate is the highest of the global travel companies and at 42%, EBITDA margins remain world class.”. It was also stated that “TTV margins will be at least 6.5% for the medium term”.

 

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Strategically, the company has been investing in directly contracted inventory, reengineering supply agreements, whilst also increasing the number of hotel contractors, particularly in Asia Pacific and the Americas. Management believes these initiatives will “generate significant earnings growth in the short to medium term.”

The company also completed a $150 million share buyback in March 2025, demonstrating confidence in its business model and commitment to returning value to shareholders.

Web Travel’s latest results have reignited optimism among investors, shifting the narrative from short-term profit declines to long-term growth potential as the global travel market continues its recovery. The company’s focus on high-growth markets, strategic investments, and margin stabilization initiatives position it well for the future. However, sustained execution and continued improvement in profitability will be critical to maintaining investor confidence and delivering on the bullish case outlined by management.