Webjet Limited has revealed its results for the 2023/24 financial year (FY24), showing record numbers across key metrics as well as a 400% increase in profit.
During the remarkable year for the online travel agent (OTA) giant, Webjet recorded a statutory net profit after tax of $72.7 million, which smashed last year’s figure of $14.5 million.
Meanwhile, underlying profit (EBITDA) grew to a record $188.1 million, a whopping 40% rise on the $134.8 million figure reached in FY23.
The group’s massive profit was underpinned by a record 8.7 million bookings over the year, a 21% increase on the 7.14 million bookings in FY23.
Total Transaction Value (TTV) also hit a record in FY24, reaching $5.6 billion – a 29% increase on FY23’s $4.35 billion in transactions.
In addition, Webjet achieved record revenue of $471.5 million, also a 29% increase on FY23’s $364.4 million.
The company’s Webjet OTA business saw a rise in its international market share, with “strong growth” over FY23 for all key metrics. EBITDA for the year totalled $54.2 million (up 25% on FY23), while its EBITDA margin reached a record 44.7%.
Elsewhere, WebBeds’ TTV hit $4 billion with all key metrics “significantly” ahead of FY23 levels. According to Webjet, booking volumes were 26% higher than FY23, with EBITDA reaching $162.4 million – an increase of 39% on FY23. Its EBITDA margin was 49.5%.
“FY24 was a fantastic year for the company with record earnings that were well ahead of last year,” Webjet Limited Managing Director John Guscic said.
“The key driver was the performance of our WebBeds business which continues to go from strength to strength. All metrics are at record levels. TTV is now $4 billion, an incredible 42% uplift compared to last year while EBITDA was up 39%.
“WebBeds has become more significant to our hotel partners and travel buyer customers, selling more product to more customers in more geographies. And we believe there is much more to come.
$10B goal
Guscic said the company’s ultimate goal was to deliver a TTV of $10 billion by FY30.
“We have a strong track record of delivering organic growth and believe we can grow at least twice the underlying market by focusing on our three pillars of growth – growing our existing portfolio of travel buyers, hotel partners and suppliers; targeting new customers, securing new supply and entering new markets; and continuing to improve conversion rate in order to sell more of what we have to everyone,” he remarked.
“WebBeds has had an incredible start to FY25. In the first seven weeks of trading, both bookings and TTV are up circa 35% compared to the same period last year. We are targeting $5 billion TTV for FY25 and are currently tracking ahead of that target.”
Meanwhile, Guscic flagged Webjet OTA’s increase in market share.
“International market share has increased 33% since the pandemic and 14% in the last 12 months,” he stated.
“EBITDA improved 25% during the year which is a remarkable result in challenging conditions where airfares are falling and commission structures for international flight bookings have diminished.
“FY24 EBITDA margins are truly best-in-class and the margin expansion this year reflects the exceptional efforts of the Webjet OTA leadership team in relentlessly searching for innovative revenue opportunities to ameliorate the prevailing market conditions.
While Webjet OTA’s early trading results for FY25 have been “subdued” due to cost of living pressures, Guscic said the business has still seen y-o-y growth in earnings.
“Webjet OTA is a market leader in the OTA sector and continues to propel itself forward gaining market share particularly in the attractive international flights market and we believe we can continue to materially increase our share,” he added.
“In transforming WebBeds and increasing Webjet OTA’s market share we have delivered what we set out to do in the post pandemic recovery.
“We are confident that demand for travel will continue to grow and are excited for the opportunities ahead for both businesses.”
Vote on Webjet 2.0
Webjet Limited’s report will likely be its last as a combined business, with the company set to hold an extraordinary general meeting of shareholders on 17 September to vote on a proposed demerged of Webjet B2C from Webjet Limited.
“As a combined business, we have far too much opportunity, and as two single businesses, that narrows that focus and allows us to really align our different… unique assets and apply where we want to go to both of those and to leverage those assets,” Webjet B2C Managing Director Katrina Barry told Karryon in a recent interview.
Stay tuned for more from that Q&A.