Webjet Group Ltd: Financial Highlights and Developments

Market Movements and Company Performance

On May 27, 2025, the ASX 200 futures indicated a rise of 51 points, or 0.60%, as of 8:30 am AEST. This uptick followed a surge in major US benchmarks, driven by the delay of a 50% EU tariff and easing bond yields. The S&P 500, in particular, recouped most of its previous week’s 2.6% decline, closing at its best levels. This positive momentum was partly attributed to Japan’s consideration of reducing debt sales, which led to a decrease in bond yields, including a 6 basis point drop in the US 10-year yield to 4.44%.

In this environment, Webjet Group Ltd, a company operating in the Consumer Discretionary sector, was highlighted for its strong FY25 earnings expectations. The company’s shares closed at 0.89 AUD on May 22, 2025, with a 52-week high of 1.24 AUD on September 26, 2024, and a low of 0.46 AUD on April 6, 2025. The market capitalization stood at 335.61 million AUD.

Demerger and Business Restructuring

Webjet Group Ltd underwent significant restructuring with the demerger of its B2C businesses—Webjet OTA, Cars & Motorhomes (formerly GoSee), and Trip Ninja—into a separate entity, Webjet Group Limited, effective September 30, 2024. This demerger resulted in Web Travel Group Limited, formerly known as Webjet Limited, focusing solely on its B2B business, WebBeds.

The FY25 results briefing highlighted that the demerger was reflected in the financial statements, with the B2C businesses categorized as discontinued operations. The Total Transaction Value (TTV) for Web Travel Group Limited increased by 22% year-on-year, reaching nearly $5 billion in FY25. However, revenue saw a modest 1% increase due to lower TTV margins, which stabilized at 6.7%. EBITDA decreased by 14% year-on-year, impacted by lower revenue and a 15% increase in costs.

Financial Summary

The preliminary final report for FY25 revealed a mixed financial performance for Web Travel Group Limited. Total revenue from continuing operations rose by 3% to 328.4 million AUD. However, profit from ordinary activities after tax from continuing operations saw a significant decline of 86%, dropping to 11.1 million AUD. In contrast, profit from discontinued operations attributable to members surged by 1896%, amounting to 190.4 million AUD. Consequently, the net profit for the period attributable to members increased by 196% to 201.5 million AUD.

Sustainability and Governance

In line with its commitment to sustainability, Web Travel Group Limited released its 2025 Sustainability Report. The report focuses on the ongoing B2B business, WebBeds, following the demerger. It outlines the company’s approach to sustainability, material topics, customer engagement, impact reduction, and responsible governance. The report also includes GRI disclosures and a SASB index, reflecting the company’s dedication to transparency and sustainable practices.

Overall, Webjet Group Ltd’s restructuring and focus on sustainability, coupled with favorable market conditions, position it for potential growth in the Consumer Discretionary sector.