The Webjet Limited (ASX: WEB) share price is on the slide on Thursday.
In morning trade, the online travel agent's shares are down 3% to $7.19.
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Why is the Webjet share price falling?
Investors have been selling Webjet's shares today after the company released a trading update ahead of its annual general meeting.
According to the release, Webjet's strong start to FY 2024 has continued, with its key segments reporting solid top-line growth financial year to date.
As of 27 August, Webjet's key WebBeds business delivered total transaction value (TTV) growth of more than 30% (or 40% in Australian dollars), with bookings also up more than 30% over the same period last year. Though, this is a slight slowdown compared to its update at the seven-week mark.
The Webjet.com.au business has also started FY 2024 strongly. Management revealed that its TTV is up more than 20% over the prior corresponding period. That's despite booking growing at a more modest rate of over 5%.
Finally, the company's smaller GoSee business has reported flat TTV for the period but a 10% lift in bookings over the prior corresponding period.
One slight disappointment might be management's commentary on its dividend plans. Unfortunately, the company has no plan to return funds to shareholders any time soon despite sitting on a cash balance of $514 million.
Webjet's chair, Roger Sharp, commented:
Five months into FY24 we are confident in the markets we serve and the demand for our products, without forgetting that the pandemic caused us to raise significant capital in bleak circumstances. For that reason, there is no near-term proposal to resume paying dividends.
The Webjet share price is up 30% over the last 12 months.
