Webjet Limited returns to profit in 2H22, delivers positive cash flow. Strong start to FY23 with all businesses profitable in April with indications of a further strong uplift in May.
WebBeds parent company, Webjet Limited, has announced its financial results for FY22.
- Group profitable in 2H22; delivering positive cash flow – FY22 $4million/month average cash surplus.
- WebBeds profitable in 2H22 driven by North American and European markets. Costs down 31% compared to pre-pandemic levels and on track to be 20% more cost efficient when back at scale.
- Webjet OTA profitable for FY22 notwithstanding border closures in 1H22 and Omicron impact in 2H22.
- GoSee rebrand underway to deliver greater efficiencies, enhance customer experience and improve underlying performance.
- Investing in innovative technology to differentiate our offering and build out our core capabilities. Locktrip in FY21, Trip Ninja in 1H22 and ROOMDEX in 2H22
- Strong start to FY23 with all businesses profitable in April with indications of a further strong uplift in May. As at May 2022, WebBeds Total Transaction Value (TTV) was ahead of May 2019, Webjet OTA bookings are tracking at c.80% of pre-pandemic levels and GoSee TTV is tracking at c.75% of pre-pandemic levels.
- Significant growth opportunities in all businesses as global travel markets reopen.
FY22 saw the business turn around, delivering a profitable 2H22 driven by WebBeds and Webjet OTA. As revenues start to return, costs are materially lower than they were pre-pandemic, reflecting the significant efficiencies coming through, particularly in the WebBeds business. TTV and Revenue were up materially compared to the 12 months to 31 March 2021 (up 262% and 466% respectively) while Expenses were only up 7%. FY22 Underlying EBITDA loss of $15 million reflected a $103 million improvement compared to the 12 months to 31 March 2021.
WebBeds was profitable for 2H22 driven by the North American and European markets. Webjet OTA was profitable for the whole year despite extensive lockdowns and border closures in 1H22, and the impact of the Omicron outbreak in 2H22. GoSee (formerly Online Republic) continued to be impacted by State and International border closures for most of the year.
Commenting on the result, Webjet Limited’s Managing Director John Guscic said:
“FY22 was a year of recovery. We are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease. WebBeds returned to profitability in the second half. Our investment in North America is paying off with booking volumes for that business now already more than double what they were pre-pandemic, and all the work undertaken to drive efficiencies saw costs remain significantly below pre-pandemic levels. Webjet OTA was profitable for the full year despite widespread lockdowns, border closures and the impact of Omicron from December. Domestic bookings spiked as borders opened, reflecting Webjet OTA’s strength in servicing the domestic leisure market, however international bookings have been subdued with airline capacity still well below pre-pandemic levels. Profitability for GoSee is highly linked to Australian and New Zealand international border openings and that business continued to be impacted by border closures for the majority of FY22, although we saw Cars TTV exceed pre-pandemic levels in March driven by domestic markets.
The year has also been one of incredible and unprecedented industry challenges consequent upon the chaotic changes in travel plans and restrictions which have put all travel industry service levels under enormous stress. We acknowledge the special cooperation of our global industry partners as we endeavour to minimise disruption. And we are particularly thankful for the flexibility and understanding of all our customers as Webjet Limited continues to add extra resources and processes to cater for markets that are now rebounding strongly.”
For full details on Webjet Limited’s FY22 results, please visit: www.webjetlimited.com
Download: Webjet Limited ASX Release
Download: Webjet Limited Company Review FY22 (PDF)
View the Webcast: FY22 Results Briefing – Managing Director’s Presentation
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