The Web Travel Group Ltd (ASX: WEB) share price is under the spotlight after announcing HY27 update that includes a share buyback.
Web Travel is the business behind WebBeds, a business that describes itself as a global business-to-business (B2B) travel marketplace, servicing the travel trade, connecting hotels and suppliers with travel buyers.
FY27 half-year update
The company has decided to provide guidance for the six months to 30 September 2026.
For the HY27 result, WebBeds total transaction value (TTV) is expected to be around 6.7%, up from 6.5% in the first half of FY26.
It also said that WebBeds HY27 revenue – in euros (functional currency – is expected to be up between 11% to 15% year on year.
The company then revealed that overall underlying EBITDA (EBITDA explained) is on track to be between A$80 million to A$86 million, despite currency headwinds of approximately 9% compared to HY26.
Web Travel said that a trading update will be provided at the company’s annual general meeting (AGM) on 27 August 2026.
Web Travel share buyback
The company’s board of directors does not believe the current Web Travel share price appropriately reflects the company’s trading performance, cash generation and medium-term earnings outlook.
With that in mind, the board intends to start an on-market share buyback up to a maximum value of $90 million.
These shares will be bought back using existing cash reserves while retaining flexibility to continuing to invest in growth. The Web Travel share buyback is expected to start in August 2026.
The company noted it can buy back up to 10% of issues shares in any 12-month period without shareholder approval.
Management comments
The Web Travel Group Managing Director John Guscic said:
Our WebBeds business continues to deliver TTV growth with enhanced margin. 1H27 is on track to be the third consecutive 6-month period where TTV margins have improved over the prior corresponding period. The optimisation initiatives and investments we made in FY26 are delivering and AI-led investments continue to drive our operating leverage.
The company is focused on maximising shareholder value. We have strong liquidity following redemption of the convertible notes in April and a share buy-back demonstrates the Board and management’s confidence in the Company’s financial strength and outlook.
Final thoughts on the Web Travel Group share price
Enacting a buyback is one of the best things a company can do to support its share price and it’s pleasing that Web Travel’s board of directors think the business is undervalued.
While some investors may prefer the company was growing even faster, I think a higher TTV margin and higher revenue is pleasing to see.
It could be one of the ASX growth shares to keep an eye on.
