Internet operator boosts profit
An AAP report says that online travel agent WebJet expects to continue its upward climb this financial year, pointing to a satisfactory trading environment after boosting its annual net profit by almost 70 per cent.
Webjet yesterday reported a net profit of $4 million for 2006-07 – a 67 per cent increase on the $2.4 million it reported the previous year.
And the company expects further growth this year, despite the sensitivity of travellers to vagaries such as interest rates and the price of petrol.
Webjet has forecast net profit after tax to rise a further 30 per cent to about $5.2 million in 2007-08.
The company also expects earnings before interest, taxes, depreciation and amortisation to grow to $6.4 million, versus $3.7 million in 2006-07, and total revenue to jump to $22.3 million from $17.5 million last year.
Its total transaction value (TTV) soared 45 per cent to $250 million.
The overall strong result meant Webjet could declare its first dividend of 2 a share.
Managing director David Clarke said the results coincided with an increase in the size of the company’s market.
“As a consequence of a pre-alerted aggressive marketing campaign during the year, Webjet added, in this year at a TTV level, approximately $78 million — an amount the equivalent to the total turnover in financial year ended 2005,” Mr Clarke said.
“This increase of 45 per cent on the previous year represents a growth rate many times that of the Australian travel industry.”
Full-year costs were $12.2 million compared with $8.4 million the previous year.
Most of that increase was because of Webjet’s more aggressive marketing.
Despite its buoyant results, Webjet shares fell 3.4 yesterday to $1.18.
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