Hotels

Webjet’s hotel business drives huge half-year profit growth

Huntley Mitchell

Huntley Mitchell

Online travel company Webjet has recorded massive increase in profit and revenue for the first half of the 2019 financial year, thanks in large part to its hotel business.

The company’s underlying net profit was $31 million for the six months to 31 December 2018 – up a staggering 59 per cent on the prior corresponding period.

Webjet’s revenue soared 28 per cent to $168.4 million, and its total transaction value (TTV) jumped 24 per cent to just under $1.8 billion.

Earnings before interest, taxes, depreciation and amortisation rose 37 per cent to $56 million in the first half of FY19.

Webjet’s B2B hotel business, WebBeds, saw its half-yearly revenue increase a whopping 72 per cent to $85.1 million, while its TTV grew 65 per cent to over $1 billion, and its bookings rose 50 per cent to more than 1.5 million.

The company’s online travel agency division lifted its half-yearly revenue by 12 per cent to $74.1 million, while its TTV was up seven per cent to $684 million, and its bookings rose 4 per cent to 785,000.

Online Republic, Webjet’s motorhome rental provider, saw half-yearly revenue grow eight per cent to $16.2 million. However, its TTV fell five per cent to $147 million, and its bookings dropped one per cent to 241,000.

Webjet managing director John Guscic said the half-yearly figures were “another outstanding result” for the business.

“Our WebBeds business continues to consolidate its position as the number two global B2B player and is now delivering significant EBITDA growth,” he said.

“Following the acquisitions of JacTravel and more recently Destinations of the World, our increased global size and scale means we have been able to shift our focus from growing market share to pursuing more profitable growth.

“The Webjet OTA continues to gain share despite a slowing domestic flights market, and our strategy to focus on profitable bookings in Online Republic saw improved TTV and EBITDA margins.”

Guscic said the company continues to believe in considerable global growth opportunities for WebBeds, particularly in the Asia-Pacific region.

“Even though we are not yet at scale in all markets, we are already close to our ‘8/5/3’ target,” he said. What Guscic means by that is eight per cent revenue/TTV margin and five per cent costs/TTV to drive three per cent EBITDA/TTV.

“We are an industry leader in the development of blockchain technology, and as we continue to extend our global reach and leverage RezChain to further tighten costs, we believe WebBeds will be able to deliver an ‘8/4/4’ target by FY22.”

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

You must be logged in to post a comment.

Travel Agents

What every travel agent can learn from actor Samuel Johnson

by Huntley Mitchell

Actor and charity founder Samuel Johnson had plenty of takeaways for travel agents at a recent conference, which you take away here.

Share

CommentComments

Aviation

Passenger plane carrying 233 makes emergency landing in cornfield

The pilots that pulled off this heroic landing are receiving more praise than our intern when he restocks the office Tim Tam supply, and that’s saying something.

Share

CommentComments

Tourism

REVEALED: All the winners from Virtuoso’s 2019 Best of the Best awards

Congratulations to all the exceptional travel companies (including a you-beaut Australian resort) that took home shiny gongs at Virtuoso’s Best of the Best awards!

Share

CommentComments

Tourism

Flavour of the Week: Contiki Australia announce new boss, TTNQ appoints CEO + MORE!

What better way to contemplate throwing in your resignation for greener pastures than by reading this week’s sure-to-make-you-jealous roundup of top-notch industry appointments?

Share

CommentComments

Aviation

Twitter melts over hot pilot after passenger “kind of” gets plane to himself

Twitter has some strong opinions about a viral video of a passenger getting a “private jet” experience. Not because the plane was empty, or because the airline said he didn’t fly on it, but because of a split-second encounter with a dreamy pilot.

Share

CommentComments

Tourism

Aussie influencer detained in Bali, forced to pay $40,000 over prescription medication

Between helping influencers avoid jail time and sorting out the guy who fly-kicked a scooter, DFAT has no doubt become well acquainted with Balinese police this week.

Share

CommentComments

Cruise

Australian entrepreneur dead after falling overboard from cruise ship

by Huntley Mitchell

In tragic news, an Australian man has died after falling overboard on a cruise ship bound for the US Virgin Islands.

Share

CommentComments

Travel Agents

Agent wrap: italktravel & cruise at home launches, TTC hosts Eden Ministry, win big with Brand USA + MORE

What’s better than reading about agents on cool famils and winning free stuff? Finally reaching Friday!

Share

CommentComments

Events

Tourism

WIN a gift hamper from the The Goods Tube: Just another reason to attend Travel DAZE

As if learning gems of knowledge and practical tips from the best in this business wasn’t enough, we have a few more tricks up our sleeve for Travel DAZE 2019.

Share

CommentComments

Events

Tourism

ATTN: Two weeks left to enter The Travel Awards 2019!

If you’re still planing on entering The Travel Awards 2019 but are yet to complete your submission, the time to get your s***t together is now!

Share

CommentComments

Tourism

Qantas, Webjet & Flight Centre among travel companies hardest hit by ASX fall

by Christian Fleetwood

Australian travel companies were among those on the receiving end of a drop in share prices at the opening of the ASX200 this morning.

Share

CommentComments

Hotels

Hotel wrap: Hilton’s big Canberra plan, Upgradus launches in Australia, New Bali beach club + MORE!

This week’s hotel wrap is so huge that it’s left Travel Weekly’s reporter with RSI in his fingers, palms and wrists.

Share

CommentComments