Webjet Group posts 7% slide in first-half EBITDA
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The news: Webjet Group has posted a 7% year-on-year slide in EBITDA as a result of a decline in bookings due to “difficult macro conditions” and the impact of an Australian Competition and Consumer Commission (ACCC) infringement notice displayed on its website.
The numbers: Webjet’s EBITDA fell to $11.7 million in the first half of FY26, lower than the $12.6 million in the first half of FY25, which was revised down due to accounting changes. Underlying EBITDA fell 9% to $14.4 million.
Bookings fell 8% year on year to 724,000 from 784,000. Revenue meanwhile fell 1% to $67.9 million from $68.4 million.
Net profit after tax lifted 51% to $6.2 million from $4.1 million in the previous corresponding period. Underlying NPAT lifted 16% to $7.8 million.
Underlying EBITDA for FY26 is expected to be in the range of $30 million and $32 million, which would be down between 9% and 14% on the previous year.
The context: Webjet flagged that the travel industry faced “difficult macro conditions” including tensions in the Middle East and elevated domestic airfares on major city routes after the departure of Rex.
It also blamed the display of an ACCC infringement notice on its online travel agency website for a two-month period to the end of September as a cause of a decline in leads and bookings. During this period, Webjet delayed the relaunch of its online travel agency brand and cut back on marketing activities, exacerbating “an already soft market”.
Cost savings were made within Webjet’s cars and homes division through automation and restructuring initiatives implemented in FY25.
What they said: “The subdued near-term outlook for the business has not altered our focus on delivering sustainable long-term growth. Whilst market conditions and performance have become challenging in the past few months, our strategy and long-term growth trajectory remain unchanged,” Webjet CEO and managing director Katrina Barry said.
The source: ASX
