Webjet (ASX:WEB) has announced another strong half with growth across all businesses for 2H2015. Webjet Ltd is an online travel agency operating in Australia, New Zealand, North America, Singapore and Hong Kong. The company specialises in reservations for flights, hotels, cruises and car hire as well as holiday packages and travel insurance.
For the 6 months leading into 30 June 2015 the company has announced a Total Transaction Value of $646 million, reflecting a 41% growth when compared to the previous corresponding period. The growth was experienced across all business including the core Webjet business, Zuji operations and the B2B divisions, Lot of Hotels and SunHotels. Webjet has shown continued growth after reporting a 22 per cent growth in 1H2015 TTV earlier this year.
The core Webjet business saw domestic bookings rise by 18 per cent and international bookings rise by 33 per cent, resulting in record TTV for every month in the second half. Following a first half downturn the Zuji business recorded a 22% TTV growth and the B2B divisions also performed well.
Webjet experienced a rally in their share price earlier this year as 1H2015 results came in better than expected. A typical over reaction from the market took the price to unsustainable levels resulting in a steady decline since late April. Recent times have seen Webjet suffer from increased competition in the travel services industry. A saturated market has resulted in price wars and in turn travel service providers have struggled. The companies short term stock price has been volatile, however monthly prices have followed a long term ascending channel.
This morning’s growth update has been received well by the market as Webjet experienced a 7.3% rise in the first few hours of trading on Wednesday.
Author: Ben Visser
Jul 08, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.