The Webjet Limited (ASX: WEB) share price is near a record high at $12.70 this afternoon as the digital travel business continues to boast strong growth prospects thanks in part to its growing business-to-business operations.
The group is guiding for operating income (EBITDA) of $81 million over FY 2017, which includes the benefits of acquired operations, but still represents more than double the $36.6 million EBITDA posted in FY 2016.
The group's business-to-business online booking services have delivered compound annual growth rates (CAGR) greater than 30% over the past five years, with its flagship www.webjet.com.au consumer-facing website helping deliver a 5-year CAGR greater than 10% for its consumer-facing operations.
In response the stock has climbed 280% over the past five years and it's the robust growth outlook for its business-to-business operations that could deliver several years of double-digit earnings growth ahead.
Webjet's innovative management team is also investing in ways to promote the use of blockchain and artificial intelligence technology in delivering better outcomes for customers and ultimately shareholders.
The stock changes hands for 25x analysts' estimates for earnings per share in FY 2018 and offers a trailing dividend yield of 1.22% plus the tax benefits of full franking credits. It looks a business to watch over the August reporting season.
