Webjet could spin off consumer business after record sales

(Source: Webjet)

Digital travel company Webjet is considering spinning off its consumer and business-facing divisions after posting record earnings for FY24.

The company said it is exploring the separation of Webjet B2C business and B2B travel distribution business WebBeds into two ASX-listed entities. Webjet B2C includes ANZ-focused digital travel business Webjet OTA, motorhome and car rental e-commerce site GoSee, and travel technology company Trip Ninja.

The demerger, if implemented, will allow both divisions to make optimal investment decisions, Webjet added. The new companies will have separate management teams, independent capital structures, and access to new investors.

“Our B2C businesses will continue to deliver organic growth through the shift to online, while separation will support our WebBeds business in its relentless focus on achieving scale in all markets, in a post-pandemic landscape characterised by a reduced number of smaller competitors,” said Webjet chair Roger Sharp.

Any potential transaction is expected to be completed in the company’s FY25.

For the year ended March 31, the company’s underlying EBITDA rose 40 per cent to $188.1 million, while underlying NPAT reached a record $128.4 million. Revenue was up 29 per cent to $471.5 million. 

WebBeds was the key driver of the company’s impressive performance, with total transaction value soaring 42 per cent and revenue up 39 per cent.

Webjet OTA continued to see strong growth in the international flight market, with international market share rising 33 per cent since the pandemic and 14 per cent in the last 12 months. 

“In transforming WebBeds and increasing Webjet OTA’s market share we have delivered what we set out to do in the post-pandemic recovery,” said Webjet MD John Guscic. “We are confident that travel demand will continue to grow and are excited for the opportunities ahead for both businesses.”

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