Webjet Group Faces Regulatory Penalty and Acquisition Rejection Amid Growth Drive

A New Chapter as a Standalone Travel Business

Webjet Group Limited officially separated from Web Travel Group Limited on 30 September 2024, marking its debut as an independent ASX-listed digital travel company. The demerger was designed to sharpen focus on the business-to-consumer (B2C) travel market, enabling Webjet Group to pursue growth initiatives tailored to its unique assets and customer base.

Despite operating as a standalone entity for only six months of the FY25 financial year, Webjet Group adopted predecessor accounting to present comparative financials as if it had always existed independently. This approach provides continuity but means comparative figures are representative rather than audited standalone results.

Financial Performance Amid Challenging Conditions

For the year ended 31 March 2025, Webjet Group reported total revenue of $139.7 million, a 3% decline on an underlying basis compared to the previous corresponding period. Underlying EBITDA increased slightly by 1% to $39.4 million, reflecting disciplined cost management and revenue optimisation efforts. Underlying net profit after tax rose 18% to $20.9 million, supported by improved net interest income and the cessation of related party interest charges post-demerger.

The company faced headwinds including cost-of-living pressures impacting domestic travel demand and the voluntary administration of Rex Airlines, a key distribution partner. However, growth in international flight bookings and ancillary products helped offset these challenges, with Webjet OTA maintaining a strong EBITDA margin above 40%.

Strategic Initiatives and Growth Outlook

Webjet Group unveiled an ambitious FY30 Strategic Plan aiming to double its total transactional value (TTV) from $1.5 billion in FY25 to $3.2 billion by FY30. Key pillars include expanding international flights market share, enhancing hotel and holiday package offerings, developing a tailored business travel solution, and refreshing brand and loyalty programs to deepen customer engagement.

The company is investing in technology, notably through its Trip Ninja platform, which optimises complex travel itineraries and is integrated across Webjet OTA’s multi-stop flight searches. Operational improvements in the Cars & Motorhomes division, including brand refreshes and cost-saving initiatives, are also underway to improve profitability.

Robust Balance Sheet and Capital Management

Webjet Group’s financial position remains strong, with net cash of $118.1 million and zero debt as at 31 March 2025. The company reduced its bank guarantee facilities ahead of schedule, underscoring disciplined balance sheet management. While no dividends were declared in FY25 due to insufficient franking credits, the Board has signaled a dividend policy targeting 40-60% of underlying net profit after tax in future years, with an interim dividend anticipated in FY26.

Regulatory and Market Developments

In regulatory matters, Webjet Group reached an agreement with the Australian Competition and Consumer Commission (ACCC) to resolve proceedings related to fee disclosures, including a proposed $9 million penalty subject to court approval. Additionally, the Board rejected a non-binding acquisition proposal from BGH Capital Pty Ltd, deeming it undervalued and not in shareholders’ best interests.

Governance remains a priority, with a board comprising experienced directors and a management team led by CEO Katrina Barry, focused on executing the strategic plan and navigating the evolving travel landscape.