Webjet Group (ASX: WJL) shares are on the slide on Tuesday.
At the time of writing, the ASX 200 travel stock is down 2% to 82.5 cents.
This follows the release of the online travel agent's first results since its demerger from Web Travel Group Ltd (ASX: WEB).
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Webjet shares falls on half-year results day
- Bookings down 8% to 783,712
- Total transaction value (TTV) down 8% to $752 million
- Revenue down 1% to $72 million
- EBITDA up 1% to $19.4 million
- Net profit after tax up 2.2% to $9.2 million
What happened during the half?
For the six months ended 30 September, Webjet reported declines in bookings, TTV, and revenue compared to the prior corresponding period. Management advised that this reflects the challenging macro-economic conditions which are impacting domestic flight bookings.
The ASX 200 travel stock's managing director, Katrina Barry, said:
The Australasian economy remains slow, and the ongoing cost of living pressures continue to subdue demand for travel, particularly for domestic flights. Webjet OTA Bookings were further impacted during the period by REX airlines going into administration given their predominately leisure focus.
But thanks to a focus on higher margin products, Webjet's earnings grew modestly over the same period last year. The company's EBITDA was up 1% to $19.4 million and its net profit after tax was up 2.2% to $9.2 million. Barry adds:
The Webjet OTA team has thus once again done an excellent job targeting higher revenue margin opportunities, selling more ancillaries to our customers and increasing international flight bookings. As a result, Revenue per Booking is now higher than it was pre-pandemic. Combined with the ongoing focus on cost control we have been able to increase Webjet OTA's profitability.
Outlook
Unfortunately, ASX 200 travel stock concedes that trading conditions are expected to remain challenging in the short term. Though, management remains positive on Webjet's medium term outlook.
Commenting on the company's outlook, managing director Katrina Barry said:
Looking forward, the macro-economic environment continues to be challenging and given our brands are consumer facing, Webjet Group will not be immune. However, we remain optimistic on the broader medium-term outlook. As outlined in our demerger investor presentation, we have clear and robust strategic priorities to deliver growth and enhance our leadership positions in online travel marketplaces.
Our planned initiatives are progressing well with several showing exciting potential and we are accelerating investment in technology platforms and other key growth drivers. With the demerger now behind us, Webjet Group is solely focused on growth, and we look forwarded to sharing more about our plans to take the Company to the next horizon at our Strategy Day in March 2025.
