Webjet (ASX:WEB) shares grabbed investors’ attention today, here’s why

2 min read | August 31, 2022 03:46 PM AEST | By Bhawna Gupta

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Webjet (ASX:WEB) shares grabbed investors’ attention today, here’s why — Image source: © Alexmit | Megapixl.com

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Highlights

Webjet today (31 August) said that 1H23 Webjet Group bookings are now tracking at 95% of pre-pandemic levels.

The company’s all three businesses are profitable for the fiscal year (FY23) to date.

Shares of Webjet were trading 9.78% higher at AU$5.61 per share on ASX today at 2.45 PM AEST.

Webjet Limited (ASX:WEB), a company which provides a full range of online travel booking services for flights, hotels, car hire, cruises, and tours, today (31 August ) shared its 1H23 business updates.

In an ASX filing, Webjet today said that 1H23 Webjet Group bookings are now tracking at 95% of pre-pandemic levels and that all three businesses are profitable for the fiscal year (FY23) to date. As of 1H23 (6 months ending 30 September 2022), the cash surplus from operations is estimated to be greater than AU$100 million.

On the back of the news, shares of Webjet were trading 9.78% higher at AU$5.61 per share on ASX today at 2.45 PM AEST.

Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 31 August 2022

Even with capacity well below previous levels, Webjet OTA is on target to achieve more than 35% EBITDA margins for the full fiscal year. It anticipates that Webjet OTA's earnings will revert to pre-pandemic levels once international airline capacity returns to 2019 levels.

Group profitable in 2H22 as WebBeds and Webjet OTA continue to drive recovery.

Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 31 August 2022

Webjet was generating AU$157.8 million in EBITDA before the arrival of Covid. When travel ceased, the company worked hard to adapt its businesses to be more efficient, lucrative and have a larger market share when travel resumed.

Based on current performance, Webjet estimates the company to outperform pre-pandemic profitability in FY24, well before the larger travel market returns to 2019 levels.

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