WEBJET’S financial results for the year to 31 Mar (TD breaking news) reflect the investments the group made in the pandemic, with the business returning to profitability in the second half.
The second half of the period also saw the WebBeds accommodation operation back in the black, but the overall result was still a loss, impacted by the $14 million write-off of the Online Republic brand which had previously operated Webjet’s now defunct cruise business.
Working capital continues to improve, with a cash surplus of $4 million per month – versus a $5.5 million monthly cash burn in the prior corresponding period.
CEO John Guscic acknowledged the “special cooperation of our global industry partners” as the company endeavoured to minimise disruption.
“This year has been one of incredible and unprecedented industry challenges, consequent upon the chaotic changes in travel plans and restrictions which have put all travel industry service levels under enormous stress,” he said, thanking customers for their flexibility and understanding particularly as resources are deployed to cater for markets rebounding strongly.
“FY22 was a year of recovery…we are now cash flow positive, our two largest businesses returned to profitability and we are seeing markets rebound strongly as travel restrictions continue to ease,” he said.
The OTA business benefited from bookings spikes as domestic borders opened in Australia, but international bookings are still subdued, which Guscic attributed to airline capacity still being well below pre-pandemic levels.
Webjet is forecasting a return to pre-pandemic booking volumes in the Oct 22-Mar 23 period.
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Source: traveldaily