Online booking giant, Webjet, says it’s on track to meet earning expectations for FY2014/15 after recording $646 million in total transaction value (TTV) during the first six months this year.
According to a half-year financial update, the company said for the six months to 30 June 2015 it achieved a 41 percent increase in TTV compared to the corresponding period last year.
Growth came from across from all areas of the business, including the core Webjet website, ZUJI operations and the B2B division – Lot of Hotels and SunHotels.
The core Webjet business saw TTV reach a record during the first half, with $443 million – 28 percent more than the corresponding period last year.
The increase came from both domestic and international bookings, which climbed 18 percent and 33 percent.
ZUJI saw TTV growth of 22 percent as the Asian business returned to profits following a downturn during the first half of the financial year.
Revenue margins were maintained during the period and the company reaffirms its guidance of $27 million EBITDA (after expensing $1 million costs associated with the acquisition of SunHotels).
This result takes into account increased costs associated with expanding sales teams within both B2B businesses, incentive payments related to strong underlying performance in the B2C division, as well as the one-off $2 million impact of foreign exchange depreciation in some European markets that affected SunHotels during the period.
Through hedging arrangements, market expansion and changes to supplier agreements, we do not expect this charge to recur.
Full year results are expected on 20 August 2015.
