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- Webjet’s shares are up following the company’s AGM
- The Earnings before interest, tax, depreciation and amortization (EBITDA) for the 2019 financial year is up 43 per cent on the previous year
- Both WebBeds and Webjet’s online travel agent performed strongly, despite the liquidation of one of WebBeds’ major customer, Thomas Cooke
- Company shares are up 3.54 per cent, trading for $12.88
Webjet shares have risen following the company’s AGM where it reported strong results in its WebBeds and Webjets OTA businesses.
The company reported an EBITDA of A$124.6 million for the 2019 financial year, equating to a 43 per cent increase on the previous year.
The biggest winner of Webjet’s businesses was WebBeds, with an EBITDA (Earnings before interest, tax, depreciation and amortisation) of A$67.8 million, contributing 48% of the group’s EBITDA. The company attributes WebBeds’ success to increased efficiencies and accelerating growth, particularly in the Asia Pacific and the Americas.
The subsidiary did, however, cop a significant setback during the year when one of its major customers, Thomas Cooke, entered compulsory liquidation.
Webjet’s Chairman, Roger Sharp, said the airliner’s liquidation would likely cost WebBeds A$44 million in receivables. In addition, it could dent the WebBeds’ 2020 financial year EBITDA predictions by A$7 million.
The company’s online travel agent, Webjet OTA, reported an EBITDA of A$60.8 million for the year, only a four per cent increase on the previous year. The slow growth was, in part, put down to spending caution prior to the 2019 Federal election, followed by a slow rebound.
Contrarily, Online Republic’s EBITDA was down six per cent on last year, at $12.5 million for the financial year.
This business manages online bookings for cruises and rental cars and motorhomes. However, it reported a severe drop in demand for travel in New Zealand following the Christchurch attacks, costing an estimated $1 million EBITDA.
Webjet’s Managing Director, John Guscic, forecast total EBITDA for the 2020 financial year would fall between $157 and $167 million.
Webjet’s full-year dividend for the 2019 financial year was 22 cents per share, up 10 per cent over the previous year.
Company shares are up 3.54 per cent, trading for $12.88 apiece at 4:10 pm today.
