Highlights:
- Underlying EBITDA: $19.4 million
- Underlying NPAT: $9.2 million
- Net cash: $100.7 million, providing significant liquidity for growth
- Webjet OTA: EBITDA up to $27.4 million, driven by higher-margin products and international bookings
- GoSee: Restructuring underway to achieve $4 million in annual OPEX savings
- Strong balance sheet: Webjet well-positioned for growth and dividends expected from FY26
- Strategic initiatives: Focus on accelerating growth and pursuing new opportunities, with a strategy update planned for March 2025
Sydney, Australia – 25 November 2024 – Webjet Group Limited (ASX: WJL) has announced its financial results for 1H25 following its demerger from WEB Travel Group (ASX: WEB) on 30 September 2024. This marks the first standalone reporting period for Webjet Group, which has aligned its reporting to reflect the period ending 30 September 2024.
Key Results for 1H25
- Bookings, TTV, and Revenue showed a slight decline compared to the previous corresponding period (pcp), reflecting broader macro-economic challenges, particularly impacting domestic flight bookings.
- Despite this, EBITDA was slightly up year-on-year, driven by a focus on higher-margin products and international bookings.
- Webjet OTA posted Revenue of $62.1 million, up from $61.2 million in 1H24, and EBITDA of $27.4 million, a solid increase from $26.6 million in the prior year. This reflects a continued focus on higher-margin ancillary products and international market growth, with EBITDA margin increasing to 44.1% (from 43.5%).
- GoSee, the Company’s car rental and motorhome business, faced continued challenges with car bookings down due to a sluggish domestic flight market and a reduced inbound tourism impact on motorhomes. However, Webjet Group has identified $4 million in annual OPEX savings from its restructuring plans, with $1 million expected in the second half of FY25.
Strategic and Operational Highlights
- The Company is seeing strong momentum in its Webjet OTA business, with Revenue per Booking now higher than pre-pandemic levels. Ancillary products now account for 35% of total revenue, and international bookings make up 20% of total flight bookings, marking a significant step forward in its strategic goals.
- GoSee’s restructuring is expected to reduce operational costs by $4 million annually, with an initial $1 million savings anticipated by 2H25.
- The Company’s balance sheet remains strong, with net cash of $100.7 million, positioning Webjet Group for future growth. Dividends are expected to commence from FY26, with further details to be shared at the FY25 results in May 2025.
Outlook and Strategic Vision
Katrina Barry, Managing Director of Webjet Group, commented: “We’re pleased to report a solid result in a tough economic environment, marked by continued cost-of-living pressures and a sluggish domestic travel market. Despite these challenges, the team has done an outstanding job of driving higher-margin revenue through ancillary products and international bookings. We’ve also made great strides in restructuring GoSee and have already identified $4 million in cost savings.”
Looking ahead, Webjet Group remains optimistic about the medium-term outlook despite the ongoing challenges in the broader economy. The Company has clear strategic priorities to accelerate growth and strengthen its position in the online travel marketplace. With the demerger now complete, Webjet Group is focused entirely on growth and is committed to investing in technology platforms and key growth drivers. Strategic updates will be shared at the Company’s Strategy Day in March 2025.
