TBO Tek Limited has released the transcript of its Earnings Conference Call held on May 29, 2026, which discussed the financial results for the quarter and financial year ended March 31, 2026. During the call, management acknowledged disruptions from the Middle East war, which impacted their largest source market and Israel, one of their top seven source markets. Despite these challenges, the company reported year-on-year growth in both top-line and bottom-line figures. The management noted a sharp recovery in business corresponding to changing circumstances, with a significant uptick observed when a ceasefire was announced in the Middle East in April. The company's strategy for the past year focused on three pillars: increased investment in market development activities, anchoring around the luxury travel segment with a new AI-first tool called Voya, and the acquisition of Classic Vacations. The integration of Classic Vacations is progressing well, with completion expected by the end of Q3 of the calendar year. Looking ahead to Q1, the company anticipates continued recovery, especially in markets not directly impacted by the war. They expect Q1 to be better than Q4 and also better than the same period last year. Management also discussed the EBITDA to GTV ratio, expecting it to move up with tapering SG&A growth and a favorable mix. Cash flow from operations is expected to return to normalcy, with timing issues being resolved. The company also addressed competitive intensity, stating they are not anticipating immediate downward pressure on take rates and aim to maintain them at current levels. Regarding the war's impact, management noted that corridors have shifted, with a downturn in the Middle East as a destination and uncertainty around Middle East carriers. Interregional business is increasing, and booking windows have shrunk. The company believes their premium and luxury segment is less sensitive to minor airfare changes but more to geopolitical concerns.
