WebBeds Group Limited Overview
WebBeds Group is a pure-play global business-to-business (B2B) "bedbank." It contracts and aggregates hotel inventory and resells it, mostly through APIs, to a network of more than 50,000 travel buyers: online travel agencies, retail and corporate travel agents, wholesalers, tour operators, airlines, loyalty programs and emerging channels such as AI agents. Its supply covers over 500,000 hotels. This includes more than 60,000 directly contracted chain properties, more than 38,000 directly contracted independent hotels, and over 65 integrated third-party wholesalers. In FY26 it processed 9.9 million bookings and A$5.8bn of total transaction value (TTV), earning A$394.1m of revenue at a 6.8% take rate. The WebBeds operating division ran a 43.8% EBITDA margin. Management describes WebBeds as the world's #2 global B2B accommodation provider behind HBX Group (Hotelbeds). Its strategy is to take share in a fragmented market of roughly US$96bn TTV through scale economics, direct contracting and AI-driven conversion and pricing. It targets A$10bn TTV by FY30.
Company's own description (FY26 Annual Report, paraphrased)
The Directors' Report describes the principal activity as online sale of travel products, predominantly hotel rooms. Since the demerger, the only business is the B2B wholesale division, WebBeds. WebBeds is presented as a global marketplace for the travel trade with five functions:
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It sources inventory from hotels and other travel suppliers.
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It connects, unifies and aggregates that content in its technology platform, the "WebBeds Marketplace."
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It distributes that content to travel buyers, who resell to travellers.
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It offers hotels more control over where and how inventory is sold.
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It sells ground transfer and related services alongside hotel rooms.
Buyers connect by API or book through trade-only websites. The company supports this with over 2,000 staff speaking 40+ languages.
Independent characterisation
WebBeds is an asset-light, merchant-model intermediary. It has three economic characteristics.
1. Revenue is a spread on gross bookings.
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Revenue is recognised net as a "TTV margin" (revenue ÷ TTV): 6.8% in FY26, 6.7% in FY25 and 8.2% in FY24.
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TTV is a non-IFRS, unaudited operating measure.
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The spread comes from the gap between net contracted or wholesale rates and the selling price to buyers, less incentives paid to distribution partners.
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The October 2024 margin reset was largely driven by higher-than-planned agent incentives (A$7.5m above plan in 1H25, about 0.3 percentage points of TTV margin) and by a shift in mix towards lower-margin channels and regions.
2. Negative working capital funds the business.
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Buyers typically pay before WebBeds pays hotels.
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At 31 March 2026, trade payables and other liabilities were A$581.8m against trade receivables and other assets of A$360.9m.
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Reported cash of A$448.1m therefore partly reflects supplier float rather than free equity cash.
3. Fixed-cost operating leverage.
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Most costs are people (FY26 employee benefits A$141.2m) and technology.
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Incremental bookings have high drop-through. WebBeds' EBITDA margin rose 150bp to 43.8% in FY26 on 20% revenue growth.
Revenue model mix
| Revenue type | Share of FY26 revenue | Comment |
|---|---|---|
| Transactional (merchant/net margin on hotel and ground bookings) | ~100% (not split further in disclosures) | Revenue from customers A$394.1m (FY26 Annual Report, Note 2.2) |
| Subscription / licensing | Not separately disclosed; believed immaterial | Pruvo (acquired FY27) and ROOMDEX may add SaaS-like or fee revenue; size not disclosed |
| Product sales | Nil | No physical products |
Value chain position
WebBeds sits between supply and demand:
Supply: hotel chains, independent hotels, channel managers, other wholesalers.
Demand: OTAs, retail and corporate travel agents, tour operators, DMCs, airlines, loyalty and super-apps, and LLM/AI agents.
The FY26 Annual Report frames this as a shift from "B2B" to "B2A" (business-to-agent). Management's argument is that AI agents will still need rate-compliant, contract-backed, bookable inventory with settlement and post-booking service, which WebBeds supplies. This has become the core rebuttal to market worries about AI disintermediation.
Customer types and end-markets
| Dimension | Detail (FY26 Annual Report) |
|---|---|
| Buyer channels | Retail (OTAs, retail and corporate agents, airlines); Wholesale (wholesalers, DMCs, tour operators, tourism boards, closed user groups); Emerging (lifestyle apps, loyalty and rewards, super-apps, LLMs and AI agents) |
| Buyer count | 50,000+ travel buyers across 140+ source markets |
| Supply base | 500,000+ hotels in 38,000+ locations across 190+ countries |
| Volumes | 9.9m bookings (~824,000 per month); 23.8m+ room nights; 8.5bn+ searches per day on average |
| Average booking value | A$589 in FY26 (FY25: A$580) |
| End markets by region | Europe (largest region by TTV), Americas, Asia-Pacific (APAC), Middle East & Africa (MEA). APAC plus Americas made up ~53% of TTV in FY25, versus 31% pre-pandemic (company history page) |
Strategy
Stated strategy (FY26 Annual Report and investor materials; themes paraphrased)
1. Win share in a large, fragmented market.
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The global bedbank market is ~US$96bn TTV (management estimate based on Skift Research Hotel Distribution Outlook 2024).
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The company aims to take share from regional and sub-scale B2B players.
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It positions itself as #2 globally.
2. Three "pillars of growth", with management's estimate of each pillar's contribution to FY26 TTV growth of 21% (like-for-like):
Management claims WebBeds is growing about four times faster than the underlying market.
3. Balance the business across four dimensions.
Customer mix: broaden the buyer base.
Supply mix: raise the share of directly contracted inventory and reduce reliance on third parties. This is also an STI measure.
Geographic mix: move towards equal TTV from the top three regions.
Scalability: improve bookings per full-time employee through SAP, automation and AI.
4. The network effect. More buyer demand makes WebBeds more relevant to hotels. That brings more content and better rates, which in turn draws more buyers.
5. "WebBeds in an AI world" / B2A.
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AI agents broaden the addressable market.
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WebBeds standardises fragmented hotel systems and rate rules into structured APIs that LLM-based buyers can use.
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Management framed this on the FY26 call: AI changes the front door of travel, while WebBeds is the plumbing behind it.
6. Capital management priorities.
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Growth first, both organic and through M&A.
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Keep a conservative balance sheet and prudent cash reserves in an uncertain macro environment.
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Return excess capital by buyback, which the Board says reflects undervaluation. No dividend.
Initiatives in the last 24 months (October 2024 – October 2026)
| Initiative | Date | Detail / target |
|---|---|---|
| Demerger of B2C (Webjet Group) | Implemented 30 September 2024 | Creates a pure-play B2B company |
| A$150m on-market buyback | Announced November 2024; completed March 2025 | Funded from balance sheet |
| Hotel contracting investment | Announced FY25; ongoing | More contracting staff to lift direct-contract share; credited with FY26 margin gains |
| Optimisation initiatives (pricing/mix) | FY26 | 1H26 TTV margin of 6.5% beat 6.2–6.4% guidance; three consecutive halves of year-on-year margin improvement expected by 1H27 |
| Transformation programs (People & Culture, Technology, Customer Service, Operations) | FY26 | Centres of Excellence (Talent Acquisition, Total Rewards, L&D); new global HR system; Zendesk-based service automation (5.7m customer interactions) |
| SAP ERP and automation | FY24–FY26 | Credited with improving bookings per FTE |
| DMC divestment | Completed 30 April 2025 | Exit from non-core destination management; removed ~0.2 points of TTV margin from comparisons |
| RCF expansion | FY26 | A$40.0m → A$300.9m |
| Convertible note redemption | 12 April 2026 | A$250m repaid from cash plus RCF |
| Pruvo acquisition | Announced 27 May 2026; completion reported mid-2026 | AI re-booking and pricing layer; ~A$26.7m cash |
| Rebrand to WebBeds Group | 28 August 2026 (ASIC) | Aligns corporate identity with the sole operating brand |
| A$90m on-market buyback | Announced 28 July 2026; started August 2026 | Price limit ≤5% above the 5-day VWAP; funded from cash |
| ESG: first AASB S2 climate report | FY26 | Decarbonisation modelling completed; targets not yet published (see Section 20) |
Medium-term targets and guidance
| Target / guidance | Value | Status |
|---|---|---|
| TTV | A$10bn by FY30 | Stated at FY25 results (May 2025) and the 2025 AGM. The FY26 materials reviewed emphasise long-term growth "consistent with historical trends" but did not explicitly restate the A$10bn figure in the extracts available. Treat as last confirmed in 2025 |
| WebBeds EBITDA margin | ~50% | As above |
| Medium-term TTV margin | ~6.5% | FY25 results |
| FY27 TTV margin | ≥6.5% | FY26 results (27 May 2026) |
| 1H27 TTV margin | ≥6.7% (1H26: 6.5%) | Upgraded 26–27 August 2026 |
| 1H27 revenue (EUR functional currency) | +14% to +16% vs 1H26 | Upgraded from +11% to +15% |
| 1H27 Group underlying EBITDA | A$85m–89m (1H26: A$81.7m) | Upgraded from A$80–86m; after ~9% FX headwind |
| 1H27 cash conversion | >100% | 28 July 2026 |
Products & Services
Legacy or discontinued brands (in Webjet Group since September 2024): Webjet OTA, GoSee (Airport Rentals, Motorhome Republic), Trip Ninja.
Product Portfolio
| Offering | Description & capabilities | Target customer | Launch / latest | Pricing model |
|---|---|---|---|---|
WebBeds Marketplace (core platform) | Aggregates directly contracted and third-party hotel content; mapping, deduplication, rate management; ~8.5bn searches/day | All travel buyers | Unified brand 2020; continuously updated | Merchant/net-rate margin (FY26 TTV margin 6.8%) |
WebBeds API (XML/JSON connectivity) | Machine-to-machine search/book/cancel; the main channel for OTAs, wholesalers, apps and AI agents | OTAs, wholesalers, super-apps, LLM agents | Ongoing | Embedded in net rates |
Trade-only booking websites | Online booking portals for agents without API capability | Retail and corporate travel agents | Legacy sites (LOH, FIT Ruums, Sunhotels, JacTravel, DOTW) consolidated under WebBeds in 2020 | Net rates / mark-up |
Direct hotel contracting | 60,000+ chain and 38,000+ independent properties contracted directly. FY26 strategy: raise the direct share of TTV and add contracting staff | Hotels (supply side) | Investment programme announced FY25 | Contracted net rates / allocations |
Third-party supply aggregation | 65+ integrated global and specialist wholesalers fill coverage gaps | Buyers needing breadth | Ongoing | Resale spread |
Last-minute accommodation supply | Expanded same-day/short-lead inventory, called out as an FY26 achievement | OTAs, airlines, corporate | FY26 | Spread |
Ground & transfers / experiences | Transfers and ground services sold alongside rooms | Tour operators, OTAs | Ongoing | Spread |
Umrah Holidays International (UHI) | Online B2B religious-travel (Umrah) packages | MEA/Islamic-market agents | 2,019 | Spread. Current revenue not disclosed |
AI dynamic pricing & conversion tools | Advanced AI pricing, enhanced mapping, more content. Management credits conversion with ~5 percentage points of FY26 TTV growth | Internal (margin/conversion) | Ongoing; FY26 | Indirect |
Pruvo (acquired FY27) | AI hotel re-booking (re-books when prices fall), dynamic pricing, hotel and room-type mapping, partner marketplace. Now B2B-only; runs as a standalone company in the group | Travel sellers wanting post-booking margin | Founded 2016; acquisition announced 27 May 2026 | Not disclosed (believed fee/revenue-share) |
ROOMDEX | Automates hotel upsell offers to guests; integrated as a supplier product | Hotel partners | 49% in 2022; 100% in 2023 | — |
Sustainability tagging (BeCause partnership) | Scales the number of properties tagged "eco-certified" on WebBeds platforms | Buyers with ESG requirements | 2,024 | Embedded |
LockTrip (associate) | Blockchain-based travel marketplace; 25% stake (2021); carried as associate (Locktrip UK Holdings Ltd) | — | 2,021 | — |
“—” = not publicly disclosed.
Financial Narrative
Sources: FY26 Annual Report (Remuneration Report Table 1; Operating Review; Financial Statements); FY25 ASX release. FY22–FY24 are consolidated Webjet Limited (pre-demerger, including B2C). FY25–FY26 are continuing operations (WebBeds plus Corporate).
Income statement and per-share data
Notes:
- WebBeds pro forma FY24 revenue was A$326.0m.
Gross profit: Not reported. The company records revenue net and has no cost of sales line.
Total NPAT FY25: Including discontinued operations and the A$183.8m demerger gain, total NPAT was A$201.5m. Total basic EPS was 52.1c and diluted 48.6c (restated).
FY24 EBITDA: FY24 underlying EBITDA is A$186.3m as restated in the FY26 Annual Report. The originally reported figure, cited by media, was ~A$188m. The difference reflects the November 2024 AASB 9 restatement (about –A$1.5m to FY24).
Dividends: The last dividend was in FY20 (ex-date 25 March 2020).
Margins and growth (analyst calculations from figures above)
Note on FY25 TTV growth: the –12.8% reflects the demerger (B2C TTV removed). On a like-for-like basis, WebBeds TTV grew +22% in FY25.
Revenue CAGR. Consolidated FY22–FY26 revenue CAGR cannot be computed on a like-for-like basis because of the demerger. On the WebBeds-only basis:
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Revenue CAGR FY24→FY26 ≈ 9.9% (A$326.0m → A$394.1m).
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TTV CAGR FY24→FY26 ≈ 20.7%.
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Management cites a 3-year bookings CAGR of ~21%.
The gap between TTV and revenue CAGR reflects the TTV margin falling from 8.2% to 6.8%.
FY26 statutory P&L detail (FY26 Annual Report, consolidated statement)
Underlying-to-statutory adjustments FY26:
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Share-based payments: A$6.7m.
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Non-operating expenses: A$17.2m, mainly A$16.3m fair-value loss on equity-linked financial assets (FY25: A$24.3m).
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Acquired amortisation: A$14.8m.
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Convertible note interest: A$13.0m.
Balance sheet
Notes:
Borrowings: are the A$250m convertible notes at amortised cost. They were reclassified to current at FY26 and redeemed on 12 April 2026.
Working capital: turned negative in FY26 mainly because the notes became current. Excluding borrowings, FY26 working capital was positive (A$143.3m).
Post-balance-date pro forma: (FY26 release): cash ~A$398.1m plus A$100m undrawn revolving credit facility (RCF) gives ~A$500m liquidity. The RCF limit was raised during FY26 from A$40.0m to A$300.9m. The 1H26 call referenced an interim step to A$200m. This implies roughly A$200m was drawn after redemption (analyst inference; the drawn balance is not explicitly disclosed).
Cash flow
Source conflict: The ASX release reports "A$132.4m cash from operations." The Annual Report Directors' Report cites "cash inflows from operations of A$162.2m." The difference likely reflects interest and tax paid, or different subtotal definitions. Both are shown. The A$125.0m indicative FCF uses the Annual Report figure and is an analyst calculation.
The A$90m buyback (FY27) began in August 2026; amounts executed to date have not been disclosed in the sources reviewed.
Ratios (analyst calculations on closing balances; underlying where noted)
Cash conversion cycle: Not meaningful. The business runs on negative working capital (supplier payables exceed receivables by ~A$221m at FY26).
Commentary on trends, inflections and drivers
FY22 (COVID trough).
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Consolidated TTV was only A$1.6bn and underlying EBITDA was negative A$15.1m.
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Statutory NPAT was –A$81.6m.
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The company survived on emergency equity and the convertible note financing that sat on the balance sheet until April 2026.
FY23–FY24 (rebound to records).
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TTV rose to A$4.3bn in FY23 and A$5.6bn in FY24 (consolidated).
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Underlying EBITDA reached A$186.3m in FY24.
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WebBeds' TTV margin peaked at 8.2% in FY24 with a ~49% EBITDA margin.
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The share price peaked at A$8.83 at 31 March 2024, a market cap of A$3.4bn.
FY25 (the margin reset).
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WebBeds grew TTV 22%, but revenue rose only ~1% as the TTV margin fell to 6.7%.
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Drivers were mix shift towards lower-margin regions and channels (Americas and APAC wholesale), higher agent incentives, and competitive pressure in Europe.
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Expenses rose 15% as headcount and technology investment was planned against the earlier margin assumption.
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WebBeds EBITDA fell 14%.
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Statutory continuing NPAT was depressed by demerger costs, A$24.3m equity-linked asset revaluations and a A$12.8m impairment.
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The share price more than halved (TSR –48%).
FY26 (operating leverage returns).
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Revenue grew in line with TTV (+20%) while WebBeds expenses grew 17% (+10% in euro functional currency). EBITDA rose 24%.
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2H26 TTV margin was 7.1%, the first half-on-half improvement narrative since the reset.
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Statutory NPAT tripled to A$35.5m.
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Underlying NPAT grew only 8% because:
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net interest income collapsed (A$143.4m of cash went to WJL and A$150m was spent on the buyback);
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hedging costs and RCF commitment fees rose;
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D&A stepped up on capitalised projects (SAP and others).
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Underlying EPS grew faster (+16%) because of the lower share count after the buyback.
FY27 inflection markers.
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1H27 guidance (upgraded 26–27 August 2026):
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underlying group EBITDA A$85–89m versus A$81.7m in 1H26, despite a ~9% currency headwind;
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revenue up 14–16% in euro terms;
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TTV margin ≥6.7%.
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Interest costs should fall after the notes were redeemed. Their A$13.0m coupon and accretion was excluded from underlying results but was a real cash/economic cost. The RCF drawings now carry floating-rate interest.
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Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
TTV (AUD Mn) | 1,637.5 | 4,345.5 | 5,585.0 | 4,868.3 | 5,823.0 |
Revenue (AUD Mn) | — | — | — | 328.4 | 394.1 |
Underlying EBITDA (AUD Mn) | -15.1 | 134.8 | 186.3 | 120.6 | 148.4 |
Statutory EBITDA (AUD Mn) | — | — | — | 77.7 | 124.5 |
Underlying EBIT (AUD Mn) | -40.4 | 90.3 | 156.6 | 98.0 | 116.4 |
Statutory EBIT (AUD Mn) | — | — | — | 27.0 | 77.7 |
Statutory pre-tax income, continuing (AUD Mn) | — | — | — | 11.1 | 52.0 |
Underlying pre-tax income (AUD Mn) | — | — | — | 94.3 | 103.7 |
Statutory NPAT, continuing ops (AUD Mn) | -81.6 | 14.5 | 68.0 | 11.1 | 35.5 |
Underlying NPAT (AUD Mn) | — | — | — | 79.2 | 85.9 |
Basic EPS, continuing (A$ cents) | -21.5 | 3.8 | 17.7 | 2.9 | 9.8 |
Diluted EPS, continuing (A$ cents) | — | — | — | 2.9 | 9.7 |
Underlying EPS (A$ cents) | -9.2 | 18.3 | 32.9 | 20.5 | 23.8 |
Underlying diluted EPS (A$ cents) | — | — | — | 20.3 | 23.5 |
Dividends per share (A$ cents) | 0 | 0 | 0 | 0 | 0 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
TTV growth (%) | — | 165.4 | 28.5 | -12.8 | 19.6 |
Revenue growth (%) | — | — | — | 0.7 | 20.0 |
Underlying EBITDA margin on revenue (%) | — | — | — | 36.7 | 37.7 |
Statutory EBITDA margin (%) | — | — | — | 23.7 | 31.6 |
Underlying EBIT margin (%) | — | — | — | 29.8 | 29.5 |
Statutory EBIT margin (%) | — | — | — | 8.2 | 19.7 |
Statutory net margin, continuing (%) | — | — | — | 3.4 | 9.0 |
Underlying net margin (%) | — | — | — | 24.1 | 21.8 |
Underlying EBITDA as % of TTV | -0.9 | 3.1 | 3.3 | 2.5 | 2.5 |
Business Lines
| Line | FY2025 | FY2026 |
|---|---|---|
Revenue from customers (AUD Mn) | 328.4 | 394.1 |
Employee benefit expense (AUD Mn) | -116.0 | -141.2 |
Operating expenses (AUD Mn) | -96.8 | -111.2 |
Other non-operating expenses (AUD Mn) | -37.9 | -17.2 |
Impairment (AUD Mn) | -12.8 | -3.3 |
Interest income (AUD Mn) | 12.2 | 6.5 |
Finance costs (AUD Mn) | -28.1 | -32.2 |
Depreciation & amortisation (AUD Mn) | -37.9 | -43.5 |
Profit before tax (AUD Mn) | 11.1 | 52.0 |
Income tax (AUD Mn) | 0.0 | -16.5 |
NPAT continuing (AUD Mn) | 11.1 | 35.5 |
Underlying effective tax rate (%) | 16.0 | 17.2 |
Statutory effective tax rate (%) | 0.0 | 31.8 |
Balance Sheet and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (AUD Mn) | 1,405.8 | 1,584.8 | 1,796.9 | 1,525.1 | 1,543.7 |
Cash & equivalents (AUD Mn) | — | — | — | 363.6 | 448.1 |
Trade receivables & other assets (AUD Mn) | — | — | — | 347.8 | 360.9 |
Goodwill & intangibles (AUD Mn) | — | — | — | 731.6 | 686.4 |
Short-term borrowings (AUD Mn) | — | — | — | 0.0 | 249.6 |
Long-term borrowings (AUD Mn) | — | — | — | 236.5 | 0.0 |
Total debt (AUD Mn) | — | — | — | 236.5 | 249.6 |
Net debt, negative = net cash (AUD Mn) | — | — | — | -127.1 | -198.5 |
Trade payables & other liabilities (AUD Mn) | — | — | — | 579.0 | 581.8 |
Total liabilities (AUD Mn) | — | — | — | 950.0 | 961.7 |
Total equity (AUD Mn) | — | — | — | 575.1 | 582.0 |
Working capital, current assets minus current liabilities (AUD Mn) | — | — | — | 76.3 | -106.3 |
NTA per share (A$ cents) | — | — | — | -43.3 | -28.9 |
Cash Flow and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow before working-capital movements (AUD Mn) | — | — | — | 126.0 | 147.5 |
Cash inflows from operations, Annual Report basis (AUD Mn) | — | — | — | — | 162.2 |
Cash from operations, ASX release basis (AUD Mn) | — | — | — | — | 132.4 |
Cash conversion (%) | — | — | — | 73 | 107 |
Capex: essential & strategic projects (AUD Mn) | — | — | — | — | 37.2 |
Intangible asset additions (AUD Mn) | — | — | — | — | 33.7 |
Indicative free cash flow, AR operating inflow minus capex (AUD Mn) | — | — | — | — | 125.0 |
Dividends paid (AUD Mn) | 0 | 0 | 0 | 0 | 0 |
Share buybacks (AUD Mn) | — | — | — | 150.0 | 0.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2025 | FY2026 |
|---|---|---|
ROE, statutory continuing (%) | 1.9 | 6.1 |
ROE, underlying (%) | 13.8 | 14.8 |
ROA, statutory (%) | 0.7 | 2.3 |
ROIC, underlying NOPAT ÷ (equity + debt – cash) (%) | 18.4 | 25.1 |
Current ratio (x) | 1.11 | 0.89 |
Debt / equity (x) | 0.41 | 0.43 |
Net debt / underlying EBITDA, negative = net cash (x) | -1.05 | -1.34 |
Interest coverage, underlying EBIT ÷ finance costs (x) | 3.5 | 3.6 |
Interest coverage, statutory EBIT ÷ finance costs (x) | 1.0 | 2.4 |
Asset turnover, revenue ÷ total assets (x) | 0.22 | 0.26 |
Region Margins & Growth (%)
| Metric | FY2026 |
|---|---|
Americas bookings growth (%) | 41 |
Americas TTV growth (%) | 30 |
Europe bookings growth (%) | 19 |
Europe TTV growth (%) | 13 |
APAC bookings growth (%) | 4 |
APAC TTV growth (%) | 4 |
MEA bookings growth (%) | 2 |
MEA TTV growth (%) | 1 |
Total TTV growth, like-for-like (%) | 21 |
Geographic Revenue
| Region | FY26 direction | Reasons (FY26 Annual Report) |
|---|---|---|
Americas | Fastest growing | Continued new client wins and share gains with existing clients |
Europe | Strong | Share gains through better optimisation of the product offer to current clients; pipeline wins in UK, Central and Eastern Europe |
APAC | Weak | Modest growth in China; material underperformance in Japan; Q4 hit by the Middle East conflict because Dubai is a key destination. Japanese offering being improved |
MEA | Weakest | Geopolitics through the year; escalation of the Middle East conflict at the end of February 2026 caused high cancellations, shorter stays, and lower March 2026 bookings/TTV versus the prior year |
Share Price and Market Valuation
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Share price at 31 March (AUD) | 5.60 | 7.02 | 8.83 | 4.56 | 2.61 |
Market capitalisation at 31 March (AUD Mn) | 2,130.9 | 2,686.7 | 3,421.4 | 1,680.6 | 943.1 |
Total shareholder return (%) | 0 | 25 | 26 | -48 | -43 |
Valuation Multiples
| Multiple | WebBeds Group | Basis / note |
|---|---|---|
P/E, statutory trailing | ~34x | Yahoo Finance shows 34.2x (diluted EPS ~10c) |
P/E, FY26 underlying | ~14.3x | A$3.40 ÷ 23.8c |
P/B | ~2.1x | Equity A$582.0m |
EV (pro forma post-redemption, before FY27 buyback spend) | ~A$1.03bn | Market cap + ~A$201m drawn RCF (inferred) – A$398.1m cash. Cash includes supplier float; an adjusted EV treating float as debt would be about A$1.25bn |
EV / FY26 underlying EBITDA | ~7.0x (≈8.4x on adjusted EV) | A$148.4m |
EV / FY26 revenue | ~2.6x | A$394.1m |
Source Details
| Source | View / target | Date |
|---|---|---|
Consensus (Investing.com / Yahoo) | Average 12-month target A$4.64; high A$6.50; low A$2.70 | October 2026 |
Simply Wall St narrative | Price target lifted to A$6.50 from A$6.00; earnings forecast +24.3% p.a.; revenue +9.3% p.a. | 12 October 2026 |
Morningstar | Fair value A$5.60; no-moat; shares "significantly undervalued" | After July 2026 |
Morgans | Upgrade; price target A$3.75 | July 2026 |
UBS | Viewed February 2026 sell-off as an overreaction (rating and target not captured) | February 2026 |
TradingView (9 analysts) | Average target A$5.93 | Early-to-mid 2026 |
Capital Markets
| Item | Detail |
|---|---|
Dividend history | None declared FY21–FY26. Last ex-dividend 25 March 2020. FY26: no interim or final |
Dividend policy | Growth-first capital priorities; conservative balance sheet amid uncertainty |
Buybacks | A$150m on-market (November 2024 – March 2025, completed). Up to A$90m on-market announced 28 July 2026, commencing August 2026; executed amount not disclosed in sources reviewed |
Credit ratings (Moody's / S&P / Fitch) | None. The company is not publicly rated |
Debt maturity profile | A$250m convertible notes redeemed 12 April 2026. RCF limit A$300.9m, ~A$200m drawn (inferred); maturity date not disclosed in sources reviewed |
Share count | 362,089,298 quoted (October 2026) plus 3,021,000 unquoted performance rights issued October 2026 plus earlier FY25/FY26 grants |
Analyst Conclusions
Management guidance (latest)
| Item | Guidance |
|---|---|
| 1H27 Group underlying EBITDA | A$85–89m (vs A$81.7m in 1H26), after a ~9% FX headwind |
| 1H27 revenue (EUR functional currency) | +14% to +16% |
| 1H27 TTV margin | ≥6.7% (vs 6.5% in 1H26) |
| 1H27 WebBeds EBITDA growth (EUR) | Expected to exceed revenue growth |
| 1H27 cash conversion | >100% |
| FY27 TTV margin | ≥6.5% |
| Long-term | Bookings and TTV growth consistent with historical trends. A$10bn TTV by FY30 at ~50% EBITDA margin was last explicitly confirmed in 2025 |
Consensus growth expectations (Simply Wall St aggregation): earnings ~+24% p.a. and revenue ~+9% p.a. over the forecast horizon.
Bull case
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Operating leverage is visible and repeatable. Revenue +20% on expenses +17% (+10% in EUR) produced EBITDA +24% in FY26. The 1H27 upgrade says EBITDA will again grow faster than revenue. Margin progress toward the ~50% WebBeds target would add meaningfully to earnings per share.
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The valuation is undemanding for the growth. At about 14x underlying P/E and about 7–8x EV/EBITDA, a business growing TTV around 20% trades well below the consensus target (A$4.64) and Morningstar's A$5.60 fair value. The A$90m buyback compounds the effect.
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Optionality from liquidity and AI. About A$500m of liquidity enables accretive tuck-ins (Pruvo is the template). The B2A thesis could expand distribution as AI agents need contract-grade supply.
Bear case
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Take rate is the swing factor, and the history is poor. The margin fell from 8.2% to 6.7% in a year. HBX now guides flat-to-down revenue on double-digit TTV growth. A competitive price war or a return to incentive-led volume could reverse FY26 gains.
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Legal and tax overhangs are unresolved. The Spanish audit covers four to five years of direct and indirect taxes, and the class action targets the 2024 disclosure. Either could lead to cash payments and further damage credibility. Statutory earnings (A$35.5m) are already well below underlying (A$85.9m).
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Macro and geopolitical exposure. MEA and Dubai-linked APAC flows were hit by the Middle East conflict. Early FY27 A$ TTV was –6%. A stronger A$ cuts reported earnings, and the absence of a dividend narrows the investor base.
Catalysts and monitorables (next 12 months)
1H27 result (25 November 2026): delivery on A$85–89m EBITDA and ≥6.7% TTV margin; any FY27 EBITDA guidance; regional mix.
Buyback execution pace and size;: whether it is extended.
Spanish tax audit: any assessment, provision or closure.
Class action: procedural steps, quantification, insurance coverage.
Pruvo integration: take-rate uplift metrics.
Further M&A: using liquidity.
Middle East normalisation: and MEA bookings recovery.
HBX and TBO results: as signals of industry take-rate pressure.
FY27 remuneration framework redesign: and any CEO succession signals.
FY27 results (late May 2027): and any restatement of FY30 targets.
Concluding analyst verdict
WebBeds Group enters FY27 as a structurally better business than its share price suggests, but with a valuation discount that is not irrational.
On the operating side, the record is now clear. Since the demerger, WebBeds has grown TTV at about 20% a year, roughly four times the underlying bedbank market by management's estimate. It has done so while stabilising and then rebuilding its take rate, from 6.5% in 1H26 to 7.1% in 2H26 and guidance of at least 6.7% for 1H27. Operating leverage is evident in the WebBeds EBITDA margin of 43.8%. Cash conversion above 100% and the clean redemption of A$250m of convertible notes show a self-funding model. The upgraded 1H27 guidance, delivered despite a 9% currency headwind and a Middle East shock, adds credibility. So does the Board's decision to deploy A$90m into buybacks.
The discount reflects three issues that are not yet resolved.
Trust: The 2024 guidance reset and restatement, now the subject of a class action, mean investors apply a governance haircut until management delivers several clean halves.
Tax: The Spanish audit is probably manageable on UBS's sizing, but it is open-ended across multiple years and both tax types.
Industry economics: The #1 player, HBX, is trading take rate for volume. That raises the possibility that WebBeds' margin gains are cyclical rather than structural.
Our synthesis is a cautiously constructive view. At about 14x underlying earnings and about 7–8x EV/EBITDA, with net cash and a buyback, the market price implies limited confidence in sustained margin progress. If 1H27 confirms EBITDA of A$85–89m and the TTV margin holds at 6.7% or above, re-rating towards consensus targets of A$4.6 or higher looks plausible. The binary risks — the tax assessment, class action damages and take-rate compression — justify position sizing below conviction weight until the audit is resolved. The key variable to watch is not growth, which is proven, but the durability of the TTV margin.
SOURCES (primary sources prioritised; accessed October 2026)
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WebBeds Group — FY26 results announcement (27 May 2026): https://webbedsgroup.com/news/fy26-results/
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Web Travel Group — FY26 Appendix 4E and Annual Report (FY to 31 March 2026): https://webbedsgroup.syd1.cdn.digitaloceanspaces.com/public/ASX-Announcements/WEB-ASX-05-27-26-FY26-4E+AnnualReport.pdf
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WebBeds Group — Our Story (company history): https://webbedsgroup.com/about-us/our-story/
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ASX — 1H27 guidance and share buy-back (28 July 2026): https://announcements.asx.com.au/asxpdf/20260728/pdf/0723p8f7ymnhl8.pdf and https://www.webtravelgroup.com/news/1h27-guidance-and-share-buy-back/
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Web Travel Group — 2026 AGM, upgraded guidance (27 August 2026): https://www.webtravelgroup.com/news/2026-agm/
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ASX — AGM MD presentation (26 August 2026): https://announcements.asx.com.au/asxpdf/20260826/pdf/0738mlwd8pvpcy.pdf
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ASX — Receipt of audit notice (6 February 2026): https://announcements.asx.com.au/asxpdf/20260206/pdf/06w0smvhsf34s7.pdf
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InvestSMART — ASX price query summary (6 February 2026): https://investsmart.com.au/investment-tools/shares/asx-price-sensitive-announcements/asx-web/2486160
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Capital Brief — FY26 guidance reaffirmed (February 2026): https://www.capitalbrief.com/briefing/web-travel-group-reaffirms-fy26-guidance-amid-spanish-tax-authority-audit-20189258-9070-4f43-bb82-d4c240f82437/
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Market Index — Analysis of the Spanish audit sell-off (10 February 2026): https://www.marketindex.com.au/news/web-travel-group-tumbled-30-last-week-heres-why-brokers-are-backing-up-the
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Finance News Network — Spanish tax audit plunge: https://www.finnewsnetwork.com.au/archives/finance_news_network3902420.html
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Business News Australia — Class action (31 July 2026): https://www.businessnewsaustralia.com/articles/web-travel-group-hit-with-class-action-after-four-day-1-billion-share-wipeout-in-2024.html
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ASX — Update on voluntary suspension, AASB 9 (20 November 2024): https://announcements.asx.com.au/asxpdf/20241120/pdf/06bmmv4b2rjzqk.pdf
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ASX — 1H25 results (27 November 2024): https://announcements.asx.com.au/asxpdf/20241127/pdf/06bwtg14xxqjld.pdf
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Web Travel Group — FY25 results (28 May 2025): https://www.webtravelgroup.com/news/fy25-results/ and https://www.webbeds.com/news/fy25-results/
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ASX — 1H26 results (25 November 2025): https://announcements.asx.com.au/asxpdf/20251125/pdf/06sfx50pkls6qg.pdf ; https://www.webbeds.com/news/1h26/
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ASX — New Board appointments (20 June 2025): https://announcements.asx.com.au/asxpdf/20250620/pdf/06kxzw65q09w3z.pdf
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PhocusWire — Pruvo acquisition: https://phocuswire.com/web-travel-group-acquires-hotel-rebooking-platform-pruvo
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AltexSoft — Pruvo deal value: https://www.altexsoft.com/travel-industry-news/web-travel-pays17-4-millon-for-pruvo-as-hotel-ai-gets-practical/
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Simply Wall St (S&P Capital IQ-sourced event log; forecasts): https://simplywall.st/stocks/de/consumer-services/fra-wbj/web-travel-group-shares/dividend ; https://simplywall.st/es/stocks/au/consumer-services/asx-web/webbeds-group-shares/future
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FilingReader — Name change and substantial holders (28 August 2026): https://filingreader.com/news-wire/sydney/2026-08-28/web-travel-group-rebrands-as-webbeds-group-limited
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InvestSMART — WEB announcements log: https://www.investsmart.com.au/security/asx/web/webbeds-group-limited/announcements
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Kalkine — Performance rights issue (7 October 2026): https://kalkine.com.au/news/announcements/webbeds-group-issues-3021000-performance-rights-to-key-management-personnel-on-6-october-2026
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Yahoo Finance — WEB.AX profile and quote: https://finance.yahoo.com/quote/WEB.AX/profile/ ; https://finance.yahoo.com/quote/WEB.AX/
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Investing.com — Price and analyst target: https://www.investing.com/equities/webjet
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Morningstar Australia — Fair value commentary: https://www.morningstar.com.au/insights/stocks/SATVKS7A3ZHCTKJ43OHNMSJQGQ/cheap-asx-share-may-have-more-room-run ; https://www.morningstar.com.au/stocks/unwarranted-drop-asx-share
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Motley Fool Australia — Buyback and guidance coverage (28 July 2026): https://www.fool.com.au/2026/07/28/why-are-web-travel-group-shares-surging-more-than-10/
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Investing.com — FY26 earnings call transcript: https://www.investing.com/news/transcripts/earnings-call-transcript-web-travel-group-fy-2026-showcases-strong-growth-93CH-4711055
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Ad-hoc-news — Name change, ISIN, reporting date: https://www.ad-hoc-news.de/boerse/news/nebenwerte/web-travel-raises-first-half-guidance-web-travel-stock-sits-26-76-percent-below-its-high/70249354
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HBX Group — FY25 results (26 November 2025): https://s205.q4cdn.com/629386486/files/doc_financials/2025/q4/2025-FY-Results-Press-Release.pdf ; HY26 results (13 May 2026): https://s205.q4cdn.com/629386486/files/doc_financials/2026/q2/2026-HY-results-press-release_vF.pdf
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TBO Tek — FY26 results coverage: https://indiaoutbound.info/?p=218857 ; Q2 FY26 / Classic Vacations: https://traveltradejournal.com/tbo-tek-reports-robust-q2-fy26-performance-with-26-per-cent-revenue-growth-and-18-32-per-cent-adjusted-ebitda-margin-before-acquisition-costs/
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Quartr — AGM trading update summary: https://quartr.com/companies/webbeds-group-limited_6048
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Committees | Background |
|---|---|---|---|---|
Roger Sharp (BA LLB) | Independent Non-Executive Chair | 1 January 2013 | Risk (member) | Ex-CEO ABN AMRO Asia Pacific Securities; Global Head of Technology, ABN AMRO; founder of North Ridge Partners; chaired travel.com.au; Chair of Iress (since May 2021); Chair of Technology Queenstown |
John Guscic (Exec MBA, BEc) | Managing Director | Board 25 January 2006; MD February 2011 | — | Ex-MD Asia Pacific, GTA; MD Travelport Pacific (Galileo, GTA; Tokyo-based); MD Galileo South Pacific; Flairview Travel |
Denise McComish (FCA, FAICD) | Independent NED | 1 March 2021 | Chair Audit; member Risk; member Remuneration & Nomination (Rem/Nom) | 30-year KPMG partner (6 years on KPMG Australia board); NED of Toll Group (from April 2026), Alkane Resources (from December 2025), Beyond Blue; former NED of Synergy, Gold Road, Mineral Resources, Macmahon; ex-Takeovers Panel |
Rachel Wiseman (MBA, BCom, LLB, GAICD) | Independent NED | 15 January 2025 | Chair Risk (from 1 September 2025); member Rem/Nom | Ex-CEO Member Capital at NRMA; Tabcorp; Fox Sports; NED of Football Australia |
Melanie Wilson (MBA, BCom Hons, GAICD) | Independent NED | 1 July 2025 | Chair Rem/Nom (from 30 September 2025); member Audit and Risk | NED of JB Hi-Fi, SkinKandy, Oroton; former Chair of Baby Bunting; former NED of PropertyGuru, EML, iSelect, Shaver Shop |
Paul Scurrah (GAICD) | Independent NED | 1 July 2025 | Member Audit, Rem/Nom, Risk | Currently MD/CEO of Fiji Airways; ex-CEO of Virgin Australia, Pacific National, DP World Australia, Queensland Rail, TravelOnline.com; ex-NED of RPMGlobal (to February 2026) |
Brad Holman | Former Senior Independent NED | 19 March 2014 – retired 30 September 2025 | Former Chair Rem/Nom | Long-standing WebBeds-era director |
Executive Leadership Team
| Name | Title | Notes |
|---|---|---|
John Guscic | Managing Director | Architect of WebBeds since 2013 |
Shelley Beasley | Chief Operating Officer | KMP for full FY26 |
Tony Ristevski (BCom Hons, ACA, Exec MBA) | CFO & Company Secretary | KMP for full FY26 |
Ella Zhao (BCom/LLB Hons) | Company Secretary (joint) | — |
Carolyn Mole | Investor Relations | IR contact on FY26 release |
Directors' Remuneration
| Executive | Salary/fees | STI | Share-based payments | Post-employment | Other | Total FY26 | Total FY25 (incl. cancellation cost) |
|---|---|---|---|---|---|---|---|
John Guscic | 1,600,000 | 1,106,664 | 873,933 | 0 | 123,052 | 3,703,649 | 4,611,720 |
Shelley Beasley | 766,932 | 427,915 | 217,018 | 23,068 | -742 | 1,434,191 | 1,407,172 |
Tony Ristevski | 761,536 | 427,915 | 217,018 | 28,464 | -1,767 | 1,433,166 | 1,397,618 |
Major Shareholders
| Holder | Stake | Date | Source |
|---|---|---|---|
Australian Retirement Trust Pty Ltd | 6.177% (up from 5.103%) | 28 August 2026 notice | FilingReader summary of ASX notices |
Macquarie Group Limited | 5.93% (down from 6.97%) | 28 August 2026 notice | FilingReader summary of ASX notices |
Other substantial holders | Multiple "becoming/ceasing" notices filed 11 June – 21 July 2026; holder identities not captured in this research | June–July 2026 | InvestSMART announcement log |
Major Shareholders — John Guscic
| Holder | Shares |
|---|---|
John Guscic | 2,893,364 shares, plus 6,037,328 OTC capped call options referencing ordinary shares |
Tony Ristevski | 307,389 |
Shelley Beasley | 303,671 |
Roger Sharp | 199,645 |
Denise McComish | 45,000 |
Melanie Wilson | 25,000 |
Rachel Wiseman | 16,565 |
Paul Scurrah | 0 |
Competitive Landscape
Key Competitors
| Competitor | Type / HQ | Scale indicators (latest public) | Positioning vs WebBeds |
|---|---|---|---|
HBX Group (Hotelbeds, Bedsonline, Roiback, The Luxurist, Civitfun) | Listed on Spanish exchanges since February 2025; Palma/London | FY25 (to September 2025): TTV €8.2bn (+8% constant currency); revenue €720m; adjusted EBITDA €431m (~60% margin); statutory net loss ~€70m. 1H26 (to March 2026): TTV €3.8bn (+17% cc); revenue €309m; take rate 8.2% (–1.3 points); FY26 revenue guidance –4% to +1% | Global #1; higher take rate and margin; more leverage (~1.7x net debt/EBITDA); also under take-rate pressure |
Expedia Group B2B (Expedia Partner Solutions / Rapid API, TAAP) | Nasdaq: EXPE; Seattle | — | Largest B2B supplier of hotel content to OTAs, airlines and banks; benefits from Expedia's direct hotel contracting |
TBO Tek | NSE/BSE: TBOTEK; India | FY26 (to March 2026): GTV INR 368.09bn (+19%); adjusted EBITDA INR 4.14bn (+26%); acquired Classic Vacations (US) for US$125m in October 2025 | Fast-growing; strong in India outbound, MEA and APAC; takes share in WebBeds' growth markets |
W2M (World2Meet) | Spain (Iberostar Group) | — | European bedbank competitor |
RateHawk / Emerging Travel Group | Private | — | Aggressive pricing to agents in Europe, MEA and CIS |
Dida Travel | China, private | — | Strong in Chinese outbound B2B |
GRNconnect | India/UAE, private | — | MEA/India agent channel |
Stuba | UK, private | — | Independent-hotel B2B |
Travco Group | Egypt/UK, private | — | MEA DMC and bedbank |
Booking.com / Booking Holdings affiliate and B2B programs | Nasdaq: BKNG | — | Indirect competitor for supply; also a potential buyer of content |
Direct hotel connectivity (channel managers, chain APIs) | Various | — | Structural disintermediation risk |
“—” = not publicly disclosed.
Peer Comparison FY2026
| Metric | WebBeds Group (FY26, A$) | HBX Group (FY25, €) | TBO Tek (FY26, INR) |
|---|---|---|---|
Gross bookings | TTV A$5.8bn | TTV €8.2bn | GTV INR 368bn |
Revenue | A$394.1m | €720m | — |
Gross bookings growth | +20% (A$) | +8% cc | +19% |
Revenue growth | +20% | +5% cc | — |
Take rate | 6.8% | ~8.8% FY25 (analyst calc: 720 ÷ 8,200); 8.2% in 1H26 | n/a (mixed air/hotel) |
EBITDA margin on revenue | 43.8% WebBeds / 37.7% group underlying | 59.9% adjusted | — |
Technology / R&D intensity | ~9.4% capex/revenue (no R&D line) | ~12% tech investment/revenue | — |
Balance sheet | Net cash ~A$198m (FY26, pre-redemption basis) | Adjusted net debt €741m (March 2026) | Cash ~INR 15.9bn |
“—” = not publicly disclosed.
