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Webjet Ltd (ASX: WEB) share price skyrocketing on Thursday's trading session, as it surged by 6.16% to AU$8.45 apiece at 12: 04pm AEDT.
Investors are showing interest in the company's shares following its 2024 WebBeds Strategy Day, where the focus was on highlighting the potential of the WebBeds business unit.
About WebBeds
For those unfamiliar with WebBeds, it serves as a global marketplace catering to the travel trade industry. It simplifies the process of selling and purchasing accommodation by offering hotel distribution solutions. WebBeds aggregates content from various travel suppliers, merchandises it in the WebBeds Marketplace, and distributes it to a vast network of travel buyers worldwide.
In recent years, WebBeds has emerged as a significant growth driver for Webjet. Given its substantial market opportunity for expansion, it is poised to play a pivotal role in the company's future growth trajectory.
Growth prospects of WebBeds
In a presentation, management underscored WebBeds' growth prospects, aiming to achieve a total transaction value (TTV) of AU$4 billion in FY 2024, followed by AU$5 billion in FY 2025. Looking further ahead, the company targets a TTV of AU$10 billion by FY 2030, accompanied by a robust 50% EBITDA margin. Achieving this ambitious goal would require WebBeds to outpace market growth twofold, reflecting the management's confidence in the business's potential.
To realize these targets, WebBeds has outlined its "Pillars of Growth," comprising strategies such as expanding its existing portfolio, tapping into new customer segments, supply sources, and markets, and optimizing conversion rates.
In addition to the WebBeds Strategy Day, Webjet provided an update earlier this week on its guidance for FY 2024. The company reaffirmed its earnings guidance, expecting underlying EBITDA to exceed the midpoint of the AU$180 million to AU$190 million range.
Overall, the positive outlook for WebBeds and the reaffirmation of earnings guidance have bolstered investor confidence in Webjet's future prospects, driving the uptick in its share price. As the company continues to focus on leveraging the growth potential of its WebBeds business and executing its strategic initiatives, investors will keenly monitor its performance in the dynamic travel industry landscape.
