Webjet almost quadruples half year profits

In amongst the many financial results of Qantas, Air New Zealand and Flight Centre – all of whom suffered dips in net profit – Webjet today recorded its own financials for the HY to December 2016, but with a bit more celebration than the others.

The OTA posted a net profit after tax for the first half of $39.4 million, almost four times what it reached last year, and it has its strong growth across its digital retail and digital wholesale divisions to thank for it.

Revenue for Webjet was also up almost 70 per cent to $124.5 million.

Another reason for the enormous turnover comes from its profit from the sale of Zuji, with the profit before tax, including the proceeds from Zuji’s sale, were up to $42.5 million.

Commenting on the results, Webjet Limited’s managing director, John Guscic said, “During the half, all businesses in both our digital retail (B2C) and digital wholesale (WebBeds B2B) divisions continued to experience strong organic bookings growth and market share growth.

“The B2C division continues to benefit from the shifting of bookings online. Webjet has now reported 33 consecutive months of record TTV and continues to gain share with bookings growth again outperforming the market by more than five times.

“The sale of Zuji was completed during the half, allowing us to focus on higher growth B2B opportunities in the Asian market.

“The investment made last year to accelerate growth opportunities within the WebBeds division is delivering results with strong EBITDA growth coming through. Lots of Hotels continues to gain share and Lots of Hotels North America is now delivering TTV.

“Sunhotels has gained share in several new markets that offer substantial growth opportunities. The distribution agreement with Thomas Cook is on track, with TTV impact expected to start flowing through during the next financial year.

“Finally, the launch of FIT Ruums provides us with an entry into the important Asian B2B market and the business is already tracking ahead of Lots of Hotels at the same stage of its start-up in 2012.”

Guscic concluded by saying that business is “exceeding expectations” for the OTA, and as a result have increased its predictions for earning before interest and tax for the FY17 to $80 million, of which $61.1 million will come from continuing businesses.

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