Web Travel Group announces $90M buy-back alongside upbeat 1H27 guidance
Web Travel Group Limited (ASX: WEB) has issued earnings guidance for the six months to 30 September 2026 (1H27) and announced its intention to conduct an on-market share buy-back of up to a maximum value of $90 million.
The headline metric: Group 1H27 Underlying EBITDA is on track to land between AUD$80 million and AUD$86 million, achieved despite currency headwinds of approximately 9% compared to 1H26.
The Board stated it does not believe the current share price appropriately reflects the Company’s trading performance, cash generation and medium-term earnings outlook. Funded from existing cash reserves, the buy-back signals Board confidence while returning capital to shareholders.
A further trading update will be provided at the Company’s Annual General Meeting (AGM) on 27 August 2026.
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Guidance points to third consecutive period of margin improvement
The guidance frames 1H27 as tracking to the third consecutive six-month period in which WebBeds Total Transaction Value (TTV) margins have improved over the prior corresponding period. TTV refers to the total value of transactions processed through the platform.
The story is one of growth paired with margin. WebBeds is expected to deliver TTV growth alongside an enhanced margin, with management attributing the performance to FY26 optimisation initiatives, prior investments, and AI-led investments driving operating leverage.
Web Travel Group FY26 results delivered TTV of $5.8 billion and Underlying Group EBITDA of $148.4 million, with cash conversion reaching 107%, providing the baseline from which the 1H27 margin improvement trajectory is measured.
| Metric | 1H26 | 1H27 Guidance | Trend/Note |
|---|---|---|---|
| WebBeds TTV margin | 6.5% | circa 6.7% | Third consecutive PCP improvement |
| WebBeds Revenue (EUR functional currency) | — | Up 11–15% on 1H26 | Growth |
| Group Underlying EBITDA | — | AUD$80m–$86m | Despite ~9% currency headwind |
| Cash conversion | — | Greater than 100% | Strong cash generation |
WebBeds revenue growth of 11–15% is stated in EUR functional currency. The approximately 9% currency headwind reflects an AUD/EUR conversion of c.61 cents for 1H27 against c.56 cents for 1H26, meaning the EBITDA guidance is expected despite the drag, not adjusted upward for it.
John Guscic, Managing Director
“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.”
The $90M buy-back explained
The Company intends to conduct an on-market buy-back of up to a maximum value of $90 million, expected to commence in August 2026. The shares are to be bought back using existing cash reserves, while retaining flexibility to continue investing in growth.
Management noted strong liquidity following the redemption of the convertible notes in April.
The mechanics of the program are as follows:
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Price cap: no more than 5% above the volume weighted average price (VWAP) of shares over the five trading days prior to purchase.
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Scope: up to 10% of issued capital in any 12-month period without shareholder approval, under the Corporations Act 2001 (Cth).
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Shares bought back will be cancelled upon acquisition.
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The number of shares purchased, and the average price, will be notified to ASX on the business day following the date of purchase.
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The Company reserves the right to suspend or terminate the program at any time.
Cancelling shares reduces issued capital, which can support earnings per share. It is a shareholder-value lever rather than a promise of any particular share price movement.
What a share buy-back means for investors
An on-market buy-back occurs when a company purchases its own shares on the ASX and then cancels them. This differs from a dividend, which returns cash directly to shareholders.
Why does it matter? Reducing the number of shares on issue means remaining shares each represent a slightly larger slice of the company. Boards often pursue buy-backs when they believe the shares are undervalued relative to underlying performance.
In this instance, the Board has explicitly stated that the current share price does not reflect its trading performance, cash generation and medium-term earnings outlook. The decision to deploy up to $90 million from existing cash follows directly from that view.
Confidence backed by cash generation
Taken together, the update presents a picture of growth-plus-margin, cash conversion above 100%, and a capital return, all pointing to Board and management confidence in the Company’s financial strength.
Guscic framed the update by stating the Company is “focused on maximising shareholder value,” adding that strong liquidity following the convertible note redemption underpins the decision.
The investment case at a glance:
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1H27 Underlying EBITDA guidance of AUD$80m–$86m despite an approximately 9% FX headwind
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Third consecutive period of WebBeds TTV margin improvement
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Cash conversion greater than 100%
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Up to $90 million capital returned via buy-back from existing cash
Key dates and what comes next
Investors have two near-term milestones to watch, alongside the reference period covered by the current guidance.
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27 August 2026 — Trading update to be provided at the AGM
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August 2026 — Proposed buy-back expected to commence
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Reference period: 1H27 covers the six months to 30 September 2026
The AGM trading update in August is set to offer the next read on whether the growth-with-margin trajectory outlined in this guidance holds.
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