Webjet (ASX:WEB) has announced a record-breaking financial year ending March 31, 2024, with impressive results across the board. The company reported a 40% increase in underlying EBITDA, reaching $188.1 million, while bookings surged by 21% to 8.7 million. Total Transaction Value (TTV) also saw a significant increase of 29% to $5.6 billion, with revenue up by 29% to $471.5 million.
Webjet’s WebBeds business performed exceptionally well, with a TTV of $4.0 billion and key metrics surpassing FY23 levels. The company’s online travel agency (OTA) also experienced substantial growth, with an EBITDA of $54.2 million, up 25% from the previous year.
Despite the remarkable financial performance, Webjet surprised shareholders with the announcement of a proposed split of the company. Chairman Roger Sharp explained that the Board sees significant value enhancement through separating the two industry-leading businesses and brands, WebBeds and Webjet B2C.
The demerger would result in two separate companies listed on the ASX, each with its own distinct operating profiles, strategies, and growth opportunities. The decision to explore the separation reflects the divergent growth opportunities available to the respective businesses and the need for independent capital structures to support optimal investment decisions.
After a decade of rapid growth and success, Webjet is now facing financial and operational pressures that have led to the decision to split the company. The move signifies a new chapter for the company, which has been a prominent player in the travel industry since its inception in 1998.
The proposed split marks a significant shift in Webjet’s strategy, as the company seeks to adapt to the changing landscape of the travel industry and position itself for continued growth and success in the future.