Webjet denies overseas threat to market share

Webjet denies overseas threat to market share
By admin


Webjet has hit back at accusations that it is under threat from growing international competition in the Australian online marketplace, insisting it is on track to meet its projections.

In a submission to the Australian Stock Exchange, chief financial officer Michael Sheehy described financial market commentary regarding the recent decline in its share price as “ill-informed and inaccurate”.

He insisted there was no factual basis behind claims that the online retailer's Australian market share is under “material” threat from overseas travel agents.

“The latest Hitwise data shows that we have increased our lead in visitation in the online travel agency category from 12.94% in March to 13.21% in April,” he wrote.

However, Sheehy admitted the Australian travel market is showing signs of being “subdued” as supported by recent aviation statistics, with Webjet not expecting to see domestic leisure growth for the year ending June 2014.

As a result, the company reconfirmed its flat market guidance released in November of an EBITDA of $21.5 million.

The figure, marginally down on the normalised result of $21.6m in 2013, takes into account “development and transformation” costs of $3m, according to Webjet.

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