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- Online travel booking company Webjet (WEB) sees a strong recovery across its business operations following the COVID-19 pandemic
- The group reported a hefty 466 per cent revenue increase and total transaction value up 262 per cent to $1.6 billion compared to the prior corresponding period
- MD John Guscic says FY22 was “a year of recovery” for the company as it’s now cashflow positive and its WebBeds and Webjet OTA business returned to profitability
- Based on current bookings and a strong start to FY23, Webjet believes it’s on track to be back at pre-pandemic booking volumes by the second half of FY23
- WEB shares are down a slight 2.16 per cent and trading at $5.67 at 2:20 pm AEST
Online travel agent Webjet (WEB) has seen a turnaround in business for the second half of FY22 with revenues starting to return following the COVID-19 pandemic.
Webjet saw its revenue surge 466 per cent to $138 million and total transaction value (TTV) up 262 per cent to $1.6 billion, which includes WebBeds TTV of $1.1 million
The group has also seen cash surpluses of $4 million per month in the six months to March 31.
While the group saw an underlying EBITDA loss of $15 million, this is a $103 million improvement on the 12 months to March 31, 2021.
Managing Director John Guscic said FY22 was ” a year of recovery” for the company.
“We are now cashflow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease,” Mr Guscic said.
The company’s WebBeds business returned to profitability in the second half, which it claims was driven by the North American and European markets.
“Our investment in North America is paying off with booking volumes for that business now already more than double what they were pre-pandemic, and all the work undertaken to drive efficiencies saw costs remain significantly below pre-pandemic levels,” he said.
Webjet OTA was reportedly profitable for the full year despite widespread lockdowns, border closures and the impact of the Omicron strain.
This can be attributed to domestic bookings spiking as the borders opened which Mr Guscic said reflects Webjet OTA’s “strength in servicing the domestic market.”
The group unfortunately can’t say the same for international travel due to airline capacity still remaining below pre-pandemic levels.
“The year has also been one of incredible and unprecedented industry challenges consequent upon the chaotic changes in travel plans and restrictions which have put all travel industry service levels under enormous stress,” Mr Guscic said.
Webjet is hopeful the struggling overseas travel industry will be back on its feet after seeing an increase in customer search activity and big airlines, such as Qantas and Virgin, place orders for new aircrafts.
After two years of travel restrictions, Webjet can see the desire to travel, and see friends and family has “never been higher.”
Positively for the company, it has experienced a strong start to FY23 with all business profitable in APril and an expected strong uplift in May.
Furthermore, Webjet said that based on current bookings, the group remains on track to be back at pre-pandemic booking volumes by the second half of FY23 (being October 2022 to March 2023).
On the market, WEB shares dropped 2.16 per cent and trading at $5.67 per share at 2:20 pm AEST.
