Webjet Group (ASX:WJL) reported its financial results for the half-year ended Sept. 30, marking its first period following a demerger from WEB Travel Group.
Despite a challenging economic environment, the company reported an underlying EBITDA of $19.4 million, a slight increase from $19.2 million in the previous corresponding period.
Underlying net profit after tax rose to $9.2 million, while net cash stood at $100.7 million, providing strong liquidity.
Bookings and total transaction value both decreased by 8%, attributed largely to ongoing economic pressures impacting domestic travel.
However, the focus on high-margin products helped maintain a strong performance, with revenue per booking now exceeding pre-pandemic levels.
The Webjet OTA segment excelled, with an EBITDA of $27.4 million, driven by a strategic focus on higher-margin international bookings and ancillary products.
Ancillary products now contribute 35% of Webjet OTA revenue, illustrating a strategic shift. The GoSee business faced challenges due to reduced long-haul inbound tourism and decreased car booking volumes.
Restructuring efforts are underway, targeting annualised operating expense savings of approximately $4 million.
Katrina Barry, Managing Director of Webjet Group, commented, "Today we report a very pleasing and strong result in the context of a challenged broader Australasian economy."
Looking ahead, Webjet Group plans to focus on enhancing its leadership position in the online travel marketplaces in Australia and New Zealand, supported by a strong balance sheet and a clear growth strategy.