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17 November, 2022

Webjet bookings return to pre-pandemic levels as WebBeds leads the charge

By Alexandra Coulton

Webjet has unveiled its first-half results for FY23, revealing its bookings were back at pre-pandemic levels and WebBeds on track to exceed pre-pandemic profitability this financial year.

The OTA recorded a group underlying EBITDA of $72.5 million, with TTV at 90 per cent of pre-pandemic levels and a cost base 16 per cent lower than pre-pandemic levels.

WebBeds global performance drove the strong result, with an EBITDA of $63.7 million (87 per cent of pre-pandemic levels) and $68.6 million on a constant currency basis (94 per cent pre-pandemic levels); EBITDA margin of over 55 per cent, ahead of pre-pandemic levels.

Webjet has projected that WebBeds is on track to exceed pre-pandemic profitability in FY23, with 2H23 EBITDA expected to exceed pre-pandemic levels by at least $10 million.

Webjet’s flights market share was up by 57 per cent since the pandemic began, with an EBITDA of $21.4 million with the domestic market driving profitability.

For the entire group, bookings were up 137 per cent, 101 per cent of pre-pandemic levels with TTV at $2,143 million up 223 per cent, 90 per cent of pre-pandemic levels, revenue was at $175.7 million, up 217 per cent and 77 per cent of pre-pandemic levels and an underlying EBITDA of $72.5 million, up 557 per cent and 69 per cent of pre-pandemic levels.

Commenting on the result, Webjet’s managing director John Guscic said the result demonstrates a spectacular turnaround of $88.4 million in underlying EBITDA from the 1H22 loss of $15.9 million.

“It underpins the efforts we took as soon as the pandemic hit to ensure each business was optimally positioned to recapture demand once travel returned,” Guscic said.

“Recovery is substantially accelerating and WebBeds is leading the charge.

“All WebBeds regions saw significant organic growth, particularly Europe which benefited from a strong northern hemisphere summer, and North America which is now more than three times larger than it was when the pandemic began.

“Despite a number of large markets yet to open, since May WebBeds bookings have exceeded what they were before the pandemic hit and profitability is getting close to pre-pandemic levels.”

Guscic said Webjet OTA significantly increased in profitability during the period, even with limited international capacity and higher airfares, bookings were 79 per cent of what they were pre-pandemic.

“Prior to the pandemic, Webjet was one of the most profitable online travel agents in the world and EBITDA margins are already back over 41 per cent, despite inflationary wage pressures and after absorbing the loss of overrides and commission usually earned on international travel,” he continued.

“The new GoSee brand is being rolled out in key markets and the rebrand strategy continues to go to plan.”

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FY23 john guscic pre-pandemic profitability webbeds webjet