Webjet profit up 27%

Backlash from the agent community hasn’t deterred Webjet from profiting for the year ending June 30.

Webjet has announced its full year profit of $22.2 million, with its traditional business model (B2C) increasing 27%. However, it’s new B2B division selling packages wholesale to retailers, saw the biggest growth up 37%.

The company’s revenue increased 29.1% to $155.3 million, with EBITDA up 31.4% to $36.6 million.

“All businesses in both our digital retail (B2C) and digital wholesale (B2B) divisions experienced strong organic bookings growth and market share growth during the year,” Webjet’s Managing Director John Guscic, said.

Guscic said its B2C division “continues to benefit from the ongoing acceleration of bookings shifting online.” Earlier this year, Webjet released a series of TVC’s urging consumers go buy direct online and shun traditional travel agencies, resulting in furore within the travel agent community and even a Facebook page dedicated to mocking Webjet.

However, it appears there hasn’t been any disappointment by the company, which reported 27 months of consecutive record TTV, with bookings growth outperforming the market by more than 5 times and international bookings “continuing to demonstrate superior growth”, Guscic said. Its Asian affiliate ZUJI also enjoyed growth, with TTV up more than 40% in the region.

Meanwhile, the integration of its New Zealand-based vehicle company Online Republic is underway and “progressing well,” Guscic said.

“Our planned growth strategy for the B2B division is delivering tangible results, with strong TTV and revenue growth coming through in both Lots of Hotels and Sunhotels. LOH North America was launched in December 2015 and is already delivering TTV,” Guscic said.

According to Guscic, the company invested $5 million to its B2B business during the year to build out “direct contracting, increased salesforce across all businesses and undertake preparatory work in relation to the distribution agreement with Thomas Cook.”

Under the new $35 million deal, Sunhotels take responsibility for the majority of Thomas Cook’s 3,000 hotel contracts.

“We are very excited about this agreement as it provides a unique opportunity to significantly expand our B2B footprint in Europe over the next 5 years and beyond,” Guscic said.

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