Webjet soars to record earnings, announces strategic demerger of leading divisions
Online travel specialist Webjet (ASX: WEB) has set new record earnings and revealed plans to separate its two leading divisions WebBeds and Webjet B2C via a demerger.
With record returns from bookings and total transaction value (TTV), Webjet’s EBITDA hit $188.1 million, with an underlying net profit after tax of $128.4m.
In announcing the results, the company told shareholders it had made a strong start to FY25, with the global tourism industry undergoing an upsurge.
WebBeds the key driver
Managing director John Guscic said the company’s last financial year was a massive turnaround.
“FY24 was a fantastic year for the company, with record earnings that were well ahead of last year,” Mr Guscic said.
“The key driver was the performance of our WebBeds business, which continues to go from strength to strength.”
“TTV is now $4 billion, an incredible 42% uplift compared to last year, while EBITDA was up 39%.”
“WebBeds has become more significant to our hotel partners and travel buyer customers, selling more product to more customers in more geographies.
“Our key focus going forward is on delivering our $10b TTV target in FY30.”
“We have a strong track record of delivering organic growth and believe we can grow at least twice the underlying market.”
Proposed demerger
Webjet used the result release to announce it is exploring a separation of global bedbanks business WebBeds and Webjet B2C – which includes Webjet OTA, GoSee and Trip Ninja – via a demerger, with two companies expected to list.
“Our business-to-consumer (B2C) and business-to-business (B2B) divisions are increasingly diverging and have minimal operational co-dependence,” Mr Guscic said.
“B2C has seen the structural shift to online accelerate since the pandemic, leading to significant growth in market share.
“We continue to see significant opportunities for WebBeds as a genuine player of global scale underpinned by our three pillars of growth: growing our existing portfolio, new customers, supply and markets and driving improved conversion.”
The potential transaction is expected to complete during Webjet’s 2025 financial year.