Webjet Limited, WebBeds parent company, today announced its financial results for the first half of FY23, with WebBeds global performance driving the Groups’ result – exceeding pre-pandemic booking levels since May 2022.
|Webjet Limited Group|
|1H23||1H22||% pre-pandemic levels (1)|
|Bookings||3.4 million||Up 137%||101%|
|TTV||$2,143 million||Up 223%||90%|
|Revenue||$175.7 million||Up 217%||77%|
|Underlying EBITDA||$72.5 million||Up 557%||69%|
Commenting on the result, Webjet Limited’s Managing Director John Guscic said:
“This result demonstrates a spectacular turnaround of $88.4 million in underlying EBITDA from the 1H22 loss of $15.9 million. It underpins the efforts we took as soon as the pandemic hit to ensure each business was optimally positioned to recapture demand once travel returned. Recovery is substantially accelerating and WebBeds is leading the charge. All WebBeds regions saw significant organic growth, particularly Europe which benefited from a strong northern hemisphere summer, and North America which is now more than three times larger than it was when the pandemic began. Search activity and conversions through the WebBeds platform continue to increase, and EBITDA margins are now higher than they were pre-pandemic. Despite a number of large markets yet to open, since May 2022 WebBeds bookings have exceeded what they were before the pandemic hit and profitability is getting close to pre-pandemic levels.”
WebBeds 1H23 Trading.
WebBeds global performance has been driving the Groups’ result, with 1H23 EBITDA $63.7 million (87% of pre-pandemic levels) and $68.6 million on a constant currency basis (94% pre-pandemic levels), EBITDA margin over 55%, and an achieved profitability target in seasonal peak (July and August).
Recovery continues to accelerate, with bookings exceeding pre-pandemic levels since May 2022, and significant organic growth – with several key large markets yet to open.
* 3Q23 represents actuals to date for 01 Oct 22 to 13 Nov 2022
Webjet Limited Capital Position.
Strong cash management and business performance during the 1H23 period:
- $168 million cash from operations – $504 million cash as at 30 September 2022. Cash surplus averaging $25 million/month, up from $3.5 million/month in 1H22.
- $86 million of term debt paid down – Term debt has since been converted to a revolving credit facility (RCF) that remains undrawn. RCF commitment has been extended from November 2023 to April 2024.
- Return to normal bank covenant testing 6 months early – Company returned to normal bank covenant testing in November 2022 (was due to be April 2023).
WebBeds is on track to exceed pre-pandemic profitability in FY23, with 2H23 EBITDA expected to exceed pre-pandemic levels by at least $10 million. 2H23 profitability for the B2C businesses (Webjet OTA and GoSee) are expected to be consistent with 1H23 results, reflecting the macroeconomic environment.
Commenting on the outlook, John Guscic said:
“It is exciting to see the Company emerge from the pandemic more agile, more efficient and better placed to deliver growth than ever before.
The landscape has changed and there is massive global opportunity for WebBeds. WebBeds is no longer European summer centric – it is now a truly global business, picking up share in all regions, operating a single technology platform, and with the capability to scale rapidly. We believe these qualities overcome the current macroeconomic pressures. 3Q23 Bookings and TTV are currently tracking more than 30% ahead of pre-pandemic levels and FY23 EBITDA is expected to be higher than it was pre-pandemic.”
Full detail on Webjet Limited 1H23 results can be found at www.webjetlimited.com
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