Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Webjet (ASX:WEB) share price on watch after big turnaround in HY23 result

The Webjet Limited (ASX:WEB) share price is on watch after the ASX travel share revealed a big recovery in the first six months of FY23.

The Webjet Limited (ASX: WEB) share price is under the spotlight after the ASX travel share revealed a big recovery in the first six months of FY23.

Webjet has just reported its result for the six months to 30 September.

HY23 result

Here are some of the highlights from the report:

  • Number of bookings rose 137% year on year to 3.4 million (101% of pre-pandemic levels)
  • Total transaction value (TTV) rose 223% to $2.1 billion (90% of pre-pandemic levels)
  • Revenue rose 217% to $175.7 million (77% of pre-pandemic levels)
  • Underlying EBITDA (EBITDA explained) rose 69% to $72.5 million
  • Underlying net profit of $32 million (compared to a $29.2 million loss in HY22)
  • Statutory net profit of $4 million (compared to a $60 million loss in HY22)

Generating a bottom line net profit has returned, while revenue is rapidly recovering to pre-pandemic levels. These are really good signs for the long-term of the business and the Webjet share price.

One of the main things to note is that Webjet’s cost base is “16% lower” than pre-pandemic levels. In other words, it’s coming out of COVID-19 as a more efficient and profitable business – once it’s back to 100% of pre-pandemic revenue, it could make a lot more money.

WebBeds managed to achieve an EBITDA margin of more than 55%, ahead of pre-COVID times. WebBeds is “on track to exceed pre-pandemic profitability for FY23.” The Webjet online travel agent market share of flights is up 57% since the pandemic began.

With its return to cash flow generation – it made $168 million of cash from operations – it has repaid $86 million of term debt and returned to normal debt (covenant) testing six months ahead of schedule. However, no dividend was declared.

Outlook for the Webjet share price and profitability

The company said that it’s on track to exceed pre-pandemic profitability in FY23, with the second half EBITDA expected to exceed pre-COVID levels by at least $10 million.

Management revealed that FY23 third quarter bookings and TTV are currently tracking more than 30% ahead of pre-pandemic levels. This is a very promising sign, considering the business is now more effective on the cost side of things.

Webjet said that “demand for travel is strong and restoration of airline capacity will be the driver of pre-pandemic profitability for the Webjet OTA business.”

I think that Webjet is a very promising ASX travel share and I believe that the market is underestimating how much Webjet’s earnings can jump over the next year or two. I think it’s at a good price for a long-term buy and hold strategy. But, there are also other ASX growth shares that could do well.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content