What happened to Webjet share price?
Webjet Limited [ASX:WEB] is a travel booking website with operations across the Asia Pacific and North America.
The company’s primary operations include their online travel agency, as well as their B2B travel business WebBeds, which sells hotel rooms to travel industry partners.
The company posted impressive interim earnings results today. At time of writing their share price is up 15.75% to $11.98.
The company now has a market capital approaching $1.5 billion.
What are Webjet’s stats?
The highlights for half-year accounts include a huge bounce in revenue to $359.8 million, up 290%.
EBITDA rose 63%, and this translated into a net profit after tax of $20 million, up 25%.
The company posits their online travel agency is outperforming the market four times over, and is seeing growth through auxiliary products.
The company acquired online European booking agent JacTravel in the first half of FY18, a move which Webjet believes will establish them as the world’s second largest online wholesaler.
WebBeds is claimed to be the ‘fastest growing B2B player in the world’.
Overall transactional volume from customers online is said to have jumped 55%, to $1.4 billion.
Managing Director John Guscic said:
‘The Webjet OTA continues to outperform the market and ongoing investment in our technology platform is driving improved visitations and conversions. We are also seeing the impact of significant growth in various higher margin ancillary products leading to TTV (total transaction value) margin improvements.’
Looking forward for Webjet
As for the 2018 outlook, the firm said:
‘January 2018 bookings are up in all businesses and we expect trading for 2H18 to be stronger than 1H18. We remain on track to deliver full year EBITDA of more than $80 million inclusive of $1 million costs in relation to the JacTravel acquisition.’
Clearly, the stock has had a volatile year. Declaring an interim dividend of 8 cents, which is now up 17.1% since the start of 2018.
Editor, Money Morning
Junior Analyst, Money Morning
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