Webjet Group Posts $39.4M EBITDA, 7% Booking Decline in FY25
Webjet Group posted a solid FY25 financial performance with underlying EBITDA up 1% despite a 7% drop in bookings, supported by growth in international travel and disciplined cost management. The company maintains a strong cash position and sets FY26 guidance in line with current results.
- Underlying EBITDA rises 1% to $39.4 million despite 7% bookings decline
- Domestic flight softness and Rex Airlines administration weigh on OTA segment
- Cars & Motorhomes division shows early signs of recovery post-restructuring
- Net cash position strong at $118.1 million with $20 million credit facility
- Dividend policy targeting 40-60% payout from FY26; share buyback deferred
A Year of Transition and Resilience
Webjet Group Limited has reported its first full financial year results since its demerger from Web Travel Group Limited, delivering a performance largely in line with market expectations despite a challenging macroeconomic backdrop. The company’s underlying EBITDA edged up 1% to $39.4 million for the year ended 31 March 2025, even as total bookings fell 7% and total transaction value declined 6%. This resilience was underpinned by a strategic pivot towards higher-margin international travel and ancillary products, which helped offset softness in the domestic flights market.
CEO Katrina Barry highlighted the company’s disciplined focus on revenue optimisation and cost control, noting that while domestic travel demand softened due to economic pressures and the voluntary administration of Rex Airlines, international bookings showed strong growth. The company’s proprietary Trip Ninja technology and NDC partnerships continue to enhance its competitive edge, contributing to sustained EBITDA margins above 40% in its online travel agency (OTA) segment.
Segment Performance and Strategic Adjustments
The Webjet OTA business faced headwinds with a 7% drop in bookings and a 5% decline in EBITDA, reflecting the domestic market challenges. However, growth in international flight bookings and ancillary sales helped limit revenue decline to just 1%. Meanwhile, the Cars & Motorhomes division, formerly GoSee, showed promising signs of turnaround following a strategic restructuring that reduced expenses by 10%. EBITDA in the second half of FY25 improved significantly, signaling a potential return to profitability in FY26.
Corporate overheads decreased by 24%, reflecting efficiencies gained post-demerger, while the Trip Ninja platform expanded its customer base and launched new analytics capabilities, positioning it as a key innovation driver within the group.
Strong Balance Sheet and Capital Management
Webjet Group’s balance sheet remains robust, with net cash of $118.1 million and no borrowings as of 31 March 2025. The company also has access to a $20 million revolving credit facility, providing flexibility to pursue growth opportunities. The board has announced a capital management framework targeting dividend distributions of 40-60% of underlying net profit after tax from FY26 onwards, contingent on sufficient franking credits. An on-market share buyback program has been deferred following the rejection of a non-binding offer from BGH Capital, with the board committed to returning surplus capital to shareholders when conditions allow.
Looking Ahead
Guidance for FY26 anticipates underlying EBITDA to remain broadly in line with FY25, assuming no further deterioration in trading conditions. Early trading in FY26 shows subdued domestic flight bookings, partly influenced by holiday timing, but international bookings are trending higher. The company continues to invest in its FY30 strategic priorities, aiming to leverage technology and market opportunities to drive long-term growth.
Webjet’s first Annual General Meeting as an independent entity is scheduled for August 2025, where investors will be keen to hear more about the company’s path forward amid ongoing economic uncertainties.
Bottom Line?
Webjet’s steady FY25 performance and strong cash position set the stage for cautious optimism as it navigates a complex travel market and pursues growth through innovation and strategic discipline.
Questions in the middle?
- How will ongoing domestic travel softness impact Webjet’s FY26 performance?
- What growth opportunities might Webjet pursue with its strong cash reserves?
- How quickly can the Cars & Motorhomes division return to sustained profitability?