Webjet share price lower despite FY19 profit jumping 46% higher

web asx

Webjet (ASX:WEB) on Thursday reported a full year profit for the 12 months ending 30th June 2018 of $81.3 million, up 46 per cent on the same period a year earlier.

On a per-share basis, the company said it had a profit of 63.3 cents, a 31% increase on the corresponding period last year. The company declared a full year fully franked dividend for the period of 22 cents per share, an increase of 10 per cent.

Managing Director John Guscic said: “FY19 was an outstanding year of profitable growth for Webjet – transacting $3.8 billion in total transaction value (TTV) and delivering another record profit for our underlying business.”

He went on to say “It was a phenomenal year for our WebBeds business – in just over 6 years since launching our start up in the Middle East, our global business is now delivering over $2 billion in TTV. We continue to gain share and consolidate our position as the #2 global B2B player and our increased size and scale is allowing us to focus on pursuing more profitable growth, resulting in higher TTV and EBITDA margins coming through in all regions.”

Strong start to FY20

Looking ahead, John Guscic said: “The first 6 weeks of trading have shown a strong start to FY20. WebBeds TTV is up over 50% compared to the prior corresponding period, Webjet OTA TTV is up 9% and Online Republic TTV is up 4%. As well as driving organic growth in all our businesses, we have a strong pipeline of acquisition opportunities”

In early trading on Thursday, Webjet shares have fallen 65 cents or 4.7 per cent to $13.20.

The Webjet share price has risen 25 per cent since the beginning of the year, while the ASX 200 Index has gained 17 per cent. 

Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au