Online travel agency Webjet [ASX:WEB] has released its financial results for FY23, claiming a drive in organic growth has boosted record bookings and TTV.
The travel group said it achieved underlying EBITDA of $134.8 million, and net profit of $69.9 million, while group bookings, TTV revenue, and EBITDA for the second half all flew above pre pandemic levels.
WEB was trading at a 2% deficit early on Wednesday morning, worth $7.30 a share.
So far in 2023 the travel stock has climbed more than 18% in share value and 23.5% in the last 12 months. It holds a strong lead in its sector of 17.5% and 20.5% above the S&P 200:
Source: TradingView
Webjet’s FY23 results improve with revenue up 164%
Today, the travel booking company posted a boost to its revenue in its latest financial update.
FY23 saw Webjet bookings, Total Transaction Value (TTV), revenue, and earnings before interest tax depreciation and amortisation (EBITDA) all up significantly compared to the same period last year.
The group shared that its underlying EBITDA for FY23 came to the total of $134 million, which reflected a turnaround of $150 million from the year before when the group took an underlying loss of $15 million.
Webjet said that it enjoyed a rise well ahead of pre pandemic levels in all its key metrics, with an acceleration in momentum driving growth and revenue to its most recent highs and said this was mostly due to its WebBeds segment.
For WebBeds, the group said FY23 EBITDA was 22% ahead of pre pandemic levels, totalling $117.1 million and this grew further or the second half, when EBITDA was 130% ahead of pre pandemic levels.
Now, based off these results, the FY23 EBITDA margin has come to 49.5%.
International travel has rebounded strongly, the group capitalising off its OTA customer travel business and continuing to gain market share even with high prices and capacity restraints subduing bookings.
For this segment, the group said FY23 EBITDA was $43.4 million, 71% higher than pre pandemic levels, with an EBITYDA margin of 40.3%.
The GoSee business also saw an increase in profits, with FY23 EBITDA coming to $1.6 million, up $4.6 million over the previous year even as tourism levels remain low and supply chain issues continue to impact business.
Webjet posted a strong cash position of $514 million as at at 31 March 2023 after repaying $86 million bank debt.
Source: WEB
Webjet’s Managing Director John Guscic commented:
‘Webjet has emerged from the pandemic better placed to deliver growth than even before. Even though travel has yet to fully return to what it was, in the second half of FY23 we saw Group Bookings, TTV, Revenue and EBITDA all ahead of where they were when the pandemic hit. This reflects all the efforts we took to make sure we would not only recapture demand when travel returned, but also further accelerate our growth profile.’
Webjet says it has seen a strong start to FY24, with the first seven weeks for WebBeds bookings and TTV more than 35% and 40% higher respectively than last year.
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