WebJet posts profit six months after demerger, defers dividend and buyback
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The news: Online travel agency WebJet reported a net profit after tax of $5.1 million but a decline in revenue and bookings in the financial year ending in March — six months since demerging from business-to-business focused Web Travel Group.
In the previous year, the company recorded a net loss of $10.6 million.
The numbers: WebJet's revenue fell 3% to $143.7 million and booking numbers dropped 7% to 1.53 million, impacted by a softening domestic travel market and Rex Airlines going into voluntary administration, the company said.
Underlying net profit after tax for the year rose 18% from $17.7 million to $20.9 million.
EBITDA fell 46% to $21.3 million in financial year 2025, down from $39.8 million in the previous year, while underlying EBIDTA was up 1% from $39.1 million to $39.4 million.
Revenue fell 3% to $143.7 million, and booking numbers fell by 7% from 1.64 million to 1.53 million.
The context: Consumer-focused WebJet de-merged from business-focused Web Travel Group and debuted on the ASX in September 2024.
The company said will not be issuing dividends this financial year due to insufficient franking credits, with an interim dividend intended to be declared for FY26 in November.
The board has adopted a dividend policy that will pay shareholders between 40% and 60% of underlying net profit after tax as annual dividends and/or capital gains.
In the absence of franking credits, the company had intended to announce an on-market share buyback, but the board has deferred implementation of capital management initiatives following the recent rejection of BGH Capital’s non-binding acquisition proposal.
The company intends to complete a buyback "when circumstances permit", WebJet chair Don Clarke said in a statement to the exchange.
The source: ASX
