Online travel company Webjet is targeting the US business market and looking for further acquisitions after lifting full year underlying earnings 20 per cent.
The company will invest $3 million in its business-to-business ventures, which sell to companies rather than directly to consumers, in the 2015/16 financial year.
It plans to establish a new US hotels operation and beef up the SunHotels business it acquired in August 2014, and expects the big spending to pay off within three years.
“We expect this investment to offer attractive returns,” managing director John Guscic said.
Pre-tax earnings are now forecast to rise 30 per cent each year over five years – an improvement in its previously stated target of 20 per cent growth.
“We continue to see real growth opportunities in the global B2B market,” Mr Guscic said.
“We have been actively looking for acquisitions, however to date have not found real value either in price or asset quality.”
Webjet said total transaction values – or the price it sells travel products and services at – in July and August were up in all of its businesses.
Total transaction values rose 31 per cent to $1.3 billion in the year to June 30, and earnings rose 20 per cent to $28 million, slightly above its previous forecast.
Net profit dropped nine per cent to $17.5 million, mainly due to higher tax rates linked to its businesses in Australia and Europe, as well as costs associated with the acquisition of SunHotels.
Shares in Webjet gained eight cents, or two per cent, at $4.09.
WEBJET PLANNING FOR GROWTH
* Net profit down 9pct at $17.5m
* Revenue up 21pct at $120m
* Final dividend up 0.25 cents at 7.25 cents
