Record-Breaking Results: Webjet delivered a net profit of $72.7 million for the twelve months ending March 31, 2024, reflecting a remarkable 400% increase year-over-year. This exceptional performance is primarily attributed to the robust growth of WebBeds, the company’s B2B bedbank platform.

WebBeds Drives Growth: WebBeds continues to demonstrate exceptional momentum, offering travel agencies, tour operators, and wholesalers access to a comprehensive network exceeding 430,000 hotels across 16,000 destinations.

Demerger to Unlock Value: Webjet intends to create two separate listed entities – one focused on WebBeds and the other encompassing its traditional travel booking operations (Webjet OTA, GoSee, Trip Ninja). This strategic move acknowledges the increasingly distinct growth trajectories of these core businesses.

Diverging Business Models: Webjet CEO John Guscic emphasizes the evolving nature of the company’s divisions. While Webjet OTA leverages the post-pandemic surge in online bookings, WebBeds prioritizes scaling its global B2B presence.

Enhanced Focus, Optimized Growth: The demerger is expected to create two industry leaders with well-defined operating profiles and distinct growth strategies. This separation will empower each entity to better serve its customer segments and capitalize on individual market opportunities within the dynamic travel ecosystem.

Subject to Shareholder Approval: The proposed demerger is contingent upon shareholder approval and is anticipated to be completed in FY25.

Strong Financials Support Demerger: Webjet’s record-breaking financial performance strengthens the rationale for the demerger. Total transaction value (TTV) reached a historic $5.59 billion, reflecting a 29% year-over-year increase. Notably, WebBeds contributed a significant $4 billion to this total.

WebBeds Sets Ambitious Target: Webjet has outlined an ambitious goal of achieving a TTV of $10 billion for WebBeds by FY30.

International Travel Boosts Webjet OTA: Webjet’s online travel agency (Webjet OTA) capitalized on the resurgence of international travel, experiencing a remarkable 33% market share increase since the pandemic.

Dividend Update: Webjet will not be declaring a dividend for FY24.

Investor Confidence on the Rise: The market responded positively to Webjet’s strong earnings and demerger announcement, with the company’s stock price surging to a four-year high of $9.72. While there has been a slight correction, Webjet’s shares remain up over 9% at the time of writing.

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