Airline booking platform Webjet [ASX:WEB] saw 1H23 bookings reach pre-pandemic levels, as underlying EBITDA swings into positive territory.
Webjet noted a ‘spectacular turnaround’ of $88.4 million in underlying EBITDA from the 1H22 loss of $15.9 million.
WEB shares were up 10% in late Thursday trade.
Webjet stock is up 15% year to date.
Source: tradingview.com
Webjet’s 1H23 — improving business conditions
Webjet’s 1H23 underlying EBITDA rose 557% year-on-year (YoY) to $72.5 million. While a strong swing, the underlying EBITDA is still tracking at 69% pre-pandemic levels.
Interestingly, while underlying EBITDA is at 69% of pre-pandemic levels, group bookings hit 101% of pre-pandemic levels, rising 137% YoY to 3.4 million.
Total transaction volume hit 90% of pre-pandemic levels, up 223% YoY to $2.1 billion on revenue of $175.7 million.
Revenue rose by 217% YoY, tracking at 77% pre-pandemic levels.
Webjet managing director John Guscic commented:
‘This result demonstrates a spectacular turnaround of $88.4 million in underlying EBITDA from the 1H22 loss of $15.9 million. It underpins the efforts we took as soon as the pandemic hit to ensure each business was optimally positioned to recapture demand once travel returned. Recovery is substantially accelerating and WebBeds is leading the charge. All WebBeds regions saw significant organic growth, particularly Europe which benefited from a strong northern hemisphere summer, and North America which is now more than three times larger than it was when the pandemic began. Search activity and conversions through the WebBeds platform continue to increase, and EBITDA margins are now higher than they were pre-pandemic. Despite a number of large markets yet to open, since May WebBeds bookings have exceeded what they were before the pandemic hit and profitability is getting close to pre-pandemic levels.
‘Webjet OTA significantly increased in profitability during the period. Even with limited international capacity and higher airfares, bookings were 79% of what they were pre-pandemic, reflecting Webjet OTA’s strength in servicing the domestic travel market. Prior to the pandemic, Webjet was one of the most profitable online travel agents in the world and EBITDA margins are already back over 41%, despite inflationary wage pressures and after absorbing the loss of overrides and commission usually earned on international travel. The new GoSee brand is being rolled out in key markets and the rebrand strategy continues to go to plan.’
Webjet management said its WebBeds segment is on track to ‘exceed pre-pandemic profitability in FY23’.
Profitability for Webjet OTA and GoSee are expected to be ‘consistent with 1H23 results, reflecting macroeconomic environment.’
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