Webjet Group Limited (Webjet Group) has announced its financial results for the six months to 30 September 2024, marking its first reporting period as a standalone entity following its demerger from WEB Travel Group Limited (ASX:WEB). The Company demonstrated strong EBITDA performance and continues to lay the groundwork for future growth despite challenging macroeconomic conditions.
Key Highlights:
- Underlying EBITDA: $19.4 million, slightly up by 1% from the previous corresponding period (pcp).
- Underlying NPAT: $9.2 million, up from $9.0 million in 1H24.
- Bookings: Down 8% to 783,712, impacted by subdued domestic flight bookings.
- TTV (Total Transaction Value): Decreased by 8% to $752 million.
- Revenue: Slightly down by 1% to $72.0 million, reflecting the impact of challenging market conditions.
Webjet OTA Performance:
- Webjet OTA EBITDA: $27.4 million, up from $26.6 million in 1H24, driven by higher-margin ancillary products and international bookings.
- Revenue per Booking: Higher than pre-pandemic levels, with 35% of revenue now coming from ancillary products and 20% from international flight bookings.
- EBITDA Margin: Increased to 44.1%, from 43.5% in 1H24, demonstrating improved profitability.
GoSee Business:
- Challenges: GoSee continues to face headwinds with car bookings down and motorhomes affected by reduced long-haul inbound tourism and higher prices.
- Restructuring: A strategic review is underway, with identified savings of approximately $4 million in annual operating expenses (OPEX), and $1 million in savings expected for 2H25.
Balance Sheet and Liquidity:
- Net Cash: $100.7 million, providing significant liquidity to support ongoing growth initiatives.
- Dividend Policy: The Company expects to announce a dividend policy at FY25 results in May 2025.
Strategic Initiatives and Outlook:
- Focus on Growth: Webjet Group has outlined a clear roadmap for growth, with a focus on technology platforms, cost control, and expanding leadership in online travel marketplaces.
- GoSee Restructuring: Efforts to streamline the GoSee business will continue, aiming to boost profitability.
- International Expansion: The Trip Ninja venture is delivering value and exploring new international opportunities.
Webjet Group remains optimistic about its medium-term outlook, despite the ongoing economic challenges. The Company is progressing with strategic initiatives, setting the stage for accelerating growth over the coming years.
Management Commentary:
Katrina Barry, Managing Director of Webjet Group, expressed confidence in the Company’s ability to navigate the current macroeconomic environment. She highlighted the ongoing focus on cost control, margin improvement, and strategic investments in technology to fuel growth. She also noted the successful demerger, which has positioned Webjet Group to fully focus on its long-term strategic objectives.
The Company plans to provide further details on its growth strategy during its Strategy Day in March 2025, where it will update stakeholders on its 3–5-year plan.
Looking Ahead: Webjet Group is poised to build on its strong financial foundation and strategic momentum, with a clear focus on growth and profitability. The Company will continue to adjust to market conditions while positioning itself for future success in the competitive online travel marketplace.
