The Webjet Ltd (ASX: WEB) share price is in focus after the ASX travel share announced its FY23 result.
Webjet is one of the largest travel providers in Australia, with its online travel agency (OTA), accommodation provider for businesses with WebBeds, and GoSee which is a campervan and car hire provider.
Webjet FY23 result
Here are the highlights from the 12 months to 31 March 2023:
- Bookings went up 115% to 7.36 million, and 16% ahead of 2019
- Total transaction value (TTV) up 165% to $4.35 billion, 1% ahead of 2019
- Revenue up 164% to $364.4 million, and 89% of 2019’s revenue
- Underlying EBITDA (EBITDA explained) of $134.8 million, 85% of 2019’s underlying EBITDA
- FY23 second half underlying EBITDA of $62.3 million was 17% ahead of the second half of 2019
- Underlying net profit of $69.9 million
- Statutory net profit after tax (NPAT) of $14.5 million
The FY23 second half also saw bookings, TTV and revenue all ahead of the second half of 2019, by 33%, 15% and 4% respectively.
Webjet attributed the huge gains to WebBeds, which saw momentum accelerating in the FY23 second half, where EBITDA was 130% ahead of pre-pandemic levels.
The ASX travel share thinks that in the longer-term, WebBeds can deliver $10 billion of TTV while continuing to deliver ‘best-in-class’ EBITDA margins.
Webjet OTA and GoSee are still being impacted by external factors, namely airline capacity constraints. The company thinks that they’re well positioned to deliver growth once international capacity returns to 2019 levels – which Qantas Airways Limited (ASX: QAN) has said it will within 12 months.
FY24 trading update
A trading update can have a large influence on the Webjet share price.
In the first seven weeks, WebBeds bookings and TTV are “more than 35% and 40% higher” respectively than for the same period last year.
Webjet OTA is “also delivering a solid performance with bookings and TTV up more than 10% and 30% on the prior year.” GoSee’s bookings and TTV are “up more than 15% and 5%”.
The company spoke of momentum for WebBeds, that the Webjet OTA has “significant international potential” and that GoSee is “laying the foundations to pursue growth in the global motorhome and car rental markets.”
Final thoughts on the Webjet share price
I think that Webjet has a very promising future. WebBeds profitability is soaring, while the return of full international capacity is promising.
As its tech-focused offering processes more volume, I think investors will see how scalable the business model is, which could drive the company higher. Webjet is not cheap these days, but I believe it can do well in the long-term thanks to a return to normal operations and good margins.
