Webjet Limited (ASX: WEB) delivered a strong first-half earnings report this morning, announcing a 12% lift in revenues for the period to $58.75 million. Meanwhile, its net profit rose by 0.8% to $9.1 million.
So What: A strong performance from Webjet's core business and the growing B2B division were the driving forces behind today's result. The company's total transaction volume (TTV) rose by 22.2% to $620 million, while international bookings rose an impressive 38%, despite a 13% depreciation of the Australian dollar compared to the US greenback. That compares to the market's growth rate of just 4%, according to Webjet's Managing Director John Guscic.
Guscic said, "We are significantly outperforming the market with the core Webjet business… Our website is significantly more engaging and has a higher level of consumer interaction than it has had in its history." The company completed its IT transformation in April last year, which has enabled Webjet to deliver customers more attractive offerings.
However, it wasn't all good news in the report with Webjet revealing that market conditions remained difficult for its Zuji business in Asia, with TTV from the division down 26.8%. Sales and margin pressures resulted in a net loss of $600,000 dollars in the period. Zuji's Australian operations remain strong, with TTV growing by more than 30%.
Now What: Webjet announced an interim dividend of 6.25 cents per share (fully franked), which is in line with last year's dividend, while it also confirmed that it is on track to achieve EBITDA (earnings before interest, tax, depreciation and amortisation) of $27 million for the full-year. Webjet's results bode well for Flight Centre Travel Group Ltd (ASX: FLT), which will report its earnings next week.
