Web Travel Group managing director John Guscic has stated that Friday’s sell-off of the company’s shares was an overreaction. This follows the revelation that the hotel room aggregator is subject to a Spanish tax audit. Web Travel Group operates as an online travel agent, offering services such as hotel bookings and travel packages. The company aims to provide customers with a wide range of travel options through its platform.
Guscic commented, “If we felt it was in any way material to guidance, future performance or business model, we would have disclosed it.” Web Travel shares experienced a 38 per cent drop on Friday. Guscic explained that the announcement regarding the audit was only made due to reports in Spanish media. Specifically, Preferente reported that Spanish tax authorities had raided the company’s Palma offices.
Despite the investor reaction, the managing director reaffirmed the business’s underlying earnings guidance. He also stated that the Spanish audit is not expected to impact the travel agent’s prospects for the financial year 2026. This reassurance aims to alleviate concerns raised by the recent audit news and the subsequent market response.
The investor unease comes as Corporate Travel Management remains suspended from trading. The company has not yet provided a date for when it will be able to report its FY25 earnings. Corporate Travel initially indicated that its auditors had found discrepancies in its accounts that would not materially impact earnings. However, it later revealed that it would need to refund over $161 million to the UK government.
