Webjet Provides Earnings Guidance for the Fiscal Year 2019
November 04, 2018 at 10:05 pm
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Webjet announced earnings guidance for the fiscal year 2019 saying it is on track to deliver at least AUD 110 million underlying EBITDA for the existing businesses for the year to 30 June 2019. This compares to EBITDA of AUD 87.4 million for the same businesses (continuing operations) reported in the fiscal year 2018. In addition, based on the current AUD/USD exchange rate, the company expects pro-forma EBITDA for the DOTW business for the year to 30 June 2019 to be at least AUD 23 million. Assuming an acquisition close of 22 November 2018 and having regard to seasonality in that business reflecting timing of the Northern Hemisphere summer holiday period and corresponding weighting of bookings to first half of 2019, the company expects DOTW to contribute incremental EBITDA of at least AUD 10 million for the year to June 2019, pre-synergies. The company therefore expects total fiscal year 2019 EBITDA to be at least AUD 120 million, comprising EBITDA from the existing businesses as well as the 7-month contribution from DOTW, pre-synergies. The company anticipates the acquisition of DOTW will generate incremental cost and revenue synergies. These include anticipated cost synergies of USD 3 million (AUD 4 million) per annum (excluding associated one-off costs) and revenue synergies primarily relating to the distribution of WebBeds' and DOTW's unique directly contract hotel inventory through the various WebBeds platforms of USD 7 million per annum (AUD 10 million) (excluding associated one-off costs). The company expects these synergies to be realised progressively over fiscal year 2019 and recognised in full in fiscal year 2020.
Webjet Limited is an Australia-based global travel company. The principal activity of the Company and its subsidiaries includes the online sale of travel products, including flights and hotel rooms. The Company's business consists of a business-to-business (B2B) wholesale division, which includes WebBeds and two retail business-to-consumer (B2C) businesses, which include Webjet OTA and GoSee. WebBeds is a global marketplace for the travel trade, an intermediary connecting hotels and other travel service suppliers to a distribution network of travel buyers all over the world. Webjet OTA is an online travel agency, which enables customers to compare, combine and book domestic and international travel flight deals, hotel accommodation, holiday package deals, travel insurance and car hire worldwide. GoSee is a global travel e-commerce group, enabling customers to search, compare and book rental cars and motorhomes via two websites, Airport Rentals and Motorhome Republic.