Technology

Webjet reveals “devastating” COVID-19 damage to full-year results

Huntley Mitchell

Huntley Mitchell

After a profitable first half of FY20, Webjet has swung to a big full-year loss, mainly due to COVID-19’s havoc-wreaking ways.

The ASX-listed online travel company posted a net loss of $143.6 million in the 12 months to 30 June, following a $9 million profit in the first six months.

Total earnings swung from $123.1 million in FY19 to a loss of $91.3 million in FY20, while revenue fell by 27 per cent to $266.1 million, and total transaction value sunk by 21 per cent to $3 billion.

Earnings for WebBeds slid 78 per cent to $15.3 million, Webjet OTA suffered a 63 per cent earnings drop to $22.6 million, and Online Republic’s earnings plummeted by 87 per cent to $1.7 million.

Webjet managing director John Guscic said the company was on track for a decent FY20 result, particularly for the WebBeds business, until coronavirus hit.

“The arrival of COVID-19 had a devastating impact on the global travel industry, including Webjet, in the second half of the year as government-imposed travel restrictions and closed borders,” he said.

“Faced with a significant fall in bookings and nominal revenues in all our businesses, we focused on what we could control. We materially reduced our costs and fortified our balance sheet.”

Guscic said Webjet was starting FY21 in a strong capital position that offers “significant” financial and strategic flexibility.

“On a pro forma basis, we have $320 million in available cash, $420 million in total liquidity and more than two years to refinance the company’s remaining term debt, leaving us well-equipped to survive an extended period of traveller uncertainty,” he said.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Travel Agents

Federal government urged to introduce HECS-style loan scheme for small businesses

Could this turn out to be another much-needed funding opportunity for travel agents? Let’s bloody hope so.

Share

CommentComments

Aviation

Air New Zealand updates international flight schedule to end of June

Keen to know the Kiwi carrier’s international movements over the next few months? All is revealed here.

Share

CommentComments

Destinations

WATCH: “Naughty” tourists forced to do push-ups for not wearing masks in Bali

Travel Weekly staff would do anything to avoid doing push-ups. Hell, we’ll wear six masks if we have to.

Share

CommentComments

Technology

Airbnb appoints new regional boss

APAC hoteliers are looking over their shoulder after the home-sharing giant named its new bossman for the region.

Share

CommentComments

Tourism

WTTC releases mental health guidelines for travel and tourism sectors

At a time when mental health could not be more important, the world’s leading tourism organisation has released some new guidelines to help businesses of all sizes in the industry support their employees.

Share

CommentComments

Cruise

Silversea announces huge commission bonus, as Silver Dawn hits the water

Would you like to get a fat bonus on top of your next cruise commission? Get on board this latest offer from Silversea.

Share

CommentComments

Destinations

APAC countries dominate the latest passport rankings

They might seem fairly useless right now, but that hasn’t stopped Henley & Partners from churning out its latest passport index.

Share

CommentComments

Wholesalers

GET IN QUICK: Less than two weeks left for Bunnik Tours’ massive 2022 sale

2022 trips at 2020 prices? This news will have your clients yelling “you bloody beauty!” or something to that effect, at least.

Share

CommentComments

Hotels

IHG and City Tattersalls Club team up to open Hotel Indigo Sydney Centre

CTC members are cheering about this new deal, as it means they can now just wander upstairs and pass out at after enjoying a few too many whiskeys at the Silks Bar.

Share

CommentComments

Destinations

Italy achieves one million COVID-19 vaccinations in just 19 days

Travel Weekly’s editor could be heard muttering Italian superlatives like “eccezionale”, “sorprendente” and “bolognese” this morning as he typed this story out.

Share

CommentComments

Travel Agents

Health boss’ international travel prediction highlights need for “renamed and repurposed” JobKeeper: AFTA

Like the way that Pokémon character Jigglypuff turns into Wigglytuff, AFTA is seeking an evolution of JobKeeper.

Share

CommentComments

Tourism

Australia’s international border closure “one of the last things to change”, says chief medical officer

The man in charge of leading Australia’s COVID-19 response isn’t budging on his international travel forecast. At least that means the champagne has more time to chill.

Share

CommentComments