Shares in Web Travel have plummeted to a multi-year low on Friday after the company announced its Spanish subsidiary is undergoing an audit by Spain’s tax authorities. The stock price fell sharply, reaching a low of $2.47, marking its lowest point in a decade. Initially declining by as much as 37 per cent, the stock has since recovered slightly, with losses now standing at 28.8 per cent, or $2.99. Web Travel operates as a hotel room aggregator, providing a platform for users to find and compare hotel prices. The company aims to streamline the hotel booking process for consumers.
According to Web Travel, the audit pertains to direct taxes paid between April 2021 and March 2024, as well as indirect taxes from January 2022 to December. The announcement has triggered significant investor concern, leading to the substantial sell-off of shares. The market is closely watching the situation as the audit progresses and further details emerge. Investors are wary of potential financial implications arising from the audit’s findings.
Web Travel was demerged from online travel agent Webjet in September 2024. Shortly after the demerger, Web Travel disclosed accounting irregularities, suggesting a substantial writedown would be necessary. However, the company later revised its statement, indicating that the adjustment would be minor.
The current tax audit in Spain has reignited investor apprehension, contributing to the stock’s sharp decline. The company is cooperating with Spanish authorities to ensure a transparent and efficient audit process. The outcome of the audit and its potential impact on Web Travel’s financial position remain uncertain.
