How are Webjet's (ASX:WEB) shares faring post H1FY23 update?

Today, the Australian airline company Webjet Limited (ASX:WEB) announced the financial results for the first half of the financial year 2023 (H1 FY23), reporting an underlying group EBITDA of AU$72.5 million in the same period. 

Followed by the release of the H1FY23 update, Webjet’s share price went up by 7.473% on ASX to AU$6.04 per share as of 11:06 AM AEDT today (17 November 2022). 

Meanwhile, in the last one year, Webjet’s share price declined slightly by 0.81% on ASX. However, on a YTD basis, its share price appreciated over 12% on ASX (as of 11:06 AM AEDT today). 

Details of Webjet’s H1FY23 result: 

• In H1 FY23, Webjet delivered a group underlying EBITDA of AU$72.5 million. Flight bookings in this half have bounced back to the pre-pandemic level. 
• Webjet’s WebBeds global performance has driven the group result, as it delivered an EBITDA of AU$63.7 million in H1 FY23, with an EBITDA margin over 55% ahead of pre-pandemic levels. 
• Webjet OTA flights market share has gone up 57% since the beginning of the pandemic. 
• OTA flights have delivered an EBITDA of AU$21.4 million in H1FY23. 
• Webjet’s GoSee delivered an EBITDA of AU$0.6 million despite a lack of inbound tourism and supply chain issues in its largest markets.  
• In the given period, Webjet has generated AU$168 million in cash from operations. 
• The company has repaid a term debt of AU$86 million term debt in H1FY23.  
• Webjet’s WebBeds is progressing towards exceeding pre-pandemic profitability for FY23.

John Guscic, Managing Director, Webjet, said: 

Webjet’s outlook for FY23: 

Webjet said that WebBeds is likely to exceed pre-pandemic profitability in FY23. The company expects the EBITDA in H2 FY23 to exceed at least AU$10 million from that of the pre-pandemic levels.

On the other hand, Webjet expects its H2 FY23 profitability to be consistent with H1 FY23 for the B2C businesses, reflecting the macroeconomic environment.