UK Acquisition Result Sends Webjet Soaring

By Glenn Dyer | More Articles by Glenn Dyer

Webjet shares jumped sharply as the $A360 million JacTravel acquisition in the UK a year ago this month paid off in spades.

The online travel agent posted a 54% lift in full year revenue to $291 million and a 30% jump in net profit to $43.2 million for the year to June30.

Just before 1pm Thursday the company’s shares were up 15% to a record $16.65.

Webjet CEO, John Guscic said 2018 was another outstanding year for the company.

“Our strong brand is also playing a key role in driving ancillary growth, particularly in packages, car hire and insurance, which helped contribute to the increased TTV (total transaction value) margins this year,” he said.

Mr Guscic says Webjet is the largest online travel agent in Australia, with more than 5% of the domestic market and 3% of the international market.

“We believe we are well positioned and have substantial headroom for ongoing bookings growth as the B2C market continues to shift online,” he says.

The company declared a final dividend of 12 cents a share (8 cents a share previously) taking the total payout to 20 cents, up from 17.5 cents a share for 2016-17.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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