Webjet Limited (ASX: WEB) released its half-year report to the ASX on Thursday, revealing a 55% increase in total transaction volumes.
Webjet Limited is the $1.2 billion owner of the popular hotel, flights and holiday packages website. It also owns Online Republic, Lots of Hotels, Sunhotels, FIT Ruums and JacTravel.
Here are the key news headlines from Webjet’s half year report:
- Total transaction volume (TTV), which is the total amount of money which passes from Webjet customers, rose 55% to $1.4 billion
- Revenue, which is the amount of money Webjet collects, rose 290% to nearly $360 million
- Net profit jumped 25% to $20 million
- An interim dividend of 8 cents per share was declared
John Guscic, Webjet Limited’s Managing Director, said the online travel business (OTA) impressively outperformed its market segment.
“The Webjet OTA continues to outperform the market and ongoing investment in our technology platform is driving improved visitations and conversions,” Guscic said. “We are also seeing the impact of significant growth in various higher margin ancillary products leading to TTV margin improvements.”
Webjet’s Online Republic business struggled in a difficult period for Cruise, but its Cars and Motorhomes lines were strong performers.
“The WebBeds B2B business continues to go from strength to strength”, Guscic added. “Each business reported strong bookings and TTV growth and we are significantly outperforming market growth in all regions.”
For new opportunities, Asian markets for business travel are growing rapidly, Guscic said. Webjet is looking to build scale in the region as quickly as possible.
“This means we are investing further in Asia during this financial year, with expected investment of $3.4 million for the year,” Guscic noted. “We expect Asia to be profitable from FY19 and beyond.”
Looking ahead, Webjet expects the second half of its financial year to be stronger than the first. It said it remains on track to deliver operating earnings (EBITDA) of more than $80 million.
On Thursday morning, Webjet shares were trading 16% higher at $1.66.
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