Web Travel has reaffirmed its full-year earnings guidance of $147 million to $155 million following a significant drop in share value. In an investor presentation on Monday, the company addressed concerns arising from news of an impending audit of its Spanish subsidiary, which triggered a nearly 30 per cent share price decline on Friday. Web Travel operates as a hotel room aggregator, connecting customers with a wide array of accommodation options globally. Its services streamline the booking process, offering competitive rates and availability.
The company informed investors that it anticipates earnings before interest, tax, depreciation, and amortisation (EBITDA) to increase between 22 per cent and 29 per cent from the $12.6 million recorded in FY24, for FY25. This projection remains unchanged despite the recent market turbulence and the forthcoming audit. The reaffirmation aims to reassure investors of the company’s underlying financial health and growth prospects.
According to the investor update, current trading trends suggest that booking growth in FY27 is expected to maintain a double-digit percentage increase. Furthermore, the company forecasts that total transaction volume margins will remain stable at 6.5 per cent in FY27. These projections underscore Web Travel’s confidence in its long-term performance and market position. On Friday, Web Travel shares experienced a 29.5 per cent decrease, settling at $2.96.
