Web Travel’s efforts to reassure investors following the disclosure of a Spanish tax audit have done little to reduce near-term uncertainty, according to RBC Capital Markets analyst Wei-Weng Chen. Despite the company maintaining its financial guidance, caution remains warranted. Web Travel is a global travel company operating primarily in the online travel sector. It provides booking services for flights, accommodations, and travel packages.
According to the analyst, Web Travel has only received a questionnaire from the Spanish tax authority and has not yet engaged with the regulator. This lack of engagement leaves management unable to determine the potential size or financial impact of the ongoing review. RBC Capital Markets noted that Web Travel management reaffirmed its FY26 EBITDA guidance of $147 million to $155 million. Early FY27 indicators are reportedly in line with market expectations, with bookings growth anticipated to remain in double digits and transaction margins holding steady at 6.5 per cent. Spain is estimated to contribute approximately 10 to 12 per cent of the group’s revenue, alleviating earlier market concerns that the impact could be greater.
Despite the unchanged guidance, RBC stated that the lack of specific details and the absence of a timeline for the review suggest investors are likely to remain cautious in the near term. Reports of a broader investigation add to this uncertainty. According to RBC, investors are right to be careful due to the current uncertainty. Media accounts of the investigation appear to be more significant than what management has conveyed.
Web Travel shares were last up 18.9 per cent following the investor call, indicating some positive market reaction, however, the overarching sentiment remains one of caution as the tax audit progresses.
