WebBeds comes to the rescue in Webjet’s strong FY23 results

Webjet bookings, total transaction value (TTV), revenue, and earnings before interest tax depreciation and amortisation (EBITDA) for FY23 are all up significantly compared to the same period last year.

The company delivered an underlying FY23 EBITDA of $134.8 million, reflecting $150 million turnaround from FY22.

WebBeds performed ahead of pre-pandemic levels on all key metrics for FY23 with momentum accelerating in 2H23. Its FY23 EBITDA of $117.1 million was 22 per cent ahead of pre-pandemic levels and its 2H23 EBITDA was 130 per cent ahead of pre pandemic levels.

Webjet OTA saw strong rebound in international travel and continued to gain market share although high prices and capacity constraints subdued overall bookings. Webjet OTA reported an FY23 EBITDA of $43.4 million – 71 per cent of pre pandemic levels.

GoSee’s profitability increased with an FY23 EBITDA of $1.6 million, up $4.6M over FY22. This continues to be impacted by lack of inbound tourism and supply chain issues in its largest markets.

Webjet also revealed a strong cash position of $514 million cash as at 31 March 2023 after repaying $86 million bank debt.

Webjet’s managing director John Guscic said the company has emerged from the pandemic better placed to deliver growth than even before.

“Even though travel has yet to fully return to what it was, in the second half of FY23 we saw Group Bookings, TTV, Revenue and EBITDA all ahead of where they were when the pandemic hit. This reflects all the efforts we took to make sure we would not only recapture demand when travel returned, but also further accelerate our growth profile,” Gudcic said.

“The key driver of these results has been the outstanding performance of the WebBeds business. Executing against our transformation strategy is paying off – we have retooled that business, streamlined the technology platform, eliminated inefficiencies and found ways to service markets that had not previously been open to us…

“By continuing to find ways to get closer to our supply partners and better understand client preferences, in the longer term we believe WebBeds can deliver $10 Billion TTV while continuing to deliver best-in-class EBITDA margins.”