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

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