Webjet leads ASX 200 rise on plans to double market growth
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The news: Webjet led ASX 200 gains on Thursday, as the online travel business set out plans to double market growth for its wholesale travel trade brand WebBeds by 2030.
The numbers: Webjet released the presentation for its 2024 WebBeds Strategy Day to the market, noting that WebBeds is "on track" to achieve total transaction value (TTV) of $4 billion in FY24, followed by $5 billion in FY25.
The company is targeting a TTV of $10 billion by FY 2030 with a 50% EBITDA margin.
Earlier this week, Webjet reaffirmed its full-year earnings guidance, with EBITDA expected to be above the midpoint of its $180 million to $190 million range.
In November, Webjet posted half-year net profit after tax of $47.3 million, up from $4 million in the prior corresponding period, with the company expecting full-year earnings to climb up to 20% higher than pre-pandemic levels.
Webjet was trading 8.2% higher at $8.61 by 2:45pm AEDT.
The context: Webjet's WebBeds business, which helps hotels sell rooms to travellers, drove the company's first-half earnings rise, with earnings and booking volumes significantly higher than pre-pandemic levels.
In its strategy day presentation, the company said that "all metrics" for WebBeds are "significantly ahead of both 1H23 and pre-pandemic levels".
The source: ASX announcement
