Webjet
(ASX:WEB) has taken off after the travel booking company delivered a positive working capital in the first half of the 2022 financial year as high booking volumes return.
Webjet delivered a cash surplus of $3.5 million per month, compared to a $5.5 million average monthly cash burn in FY21. Total transaction volume, revenue and EBITDA were all up compared to the previous comparable period, reflecting the gradual reopening of global travel markets. Total revenue reached $55.4 million, compared to $22.6 million.
The company's WebBeds business has been profitable since July, driven by domestic markets in North America and Europe.
“1H22 results largely reflect the turnaround in WebBeds with that business now producing positive cash. Our decision to target new domestic opportunities while international markets were closed and expand WebBeds’ presence in the large North American B2B market has returned that business to profitability," said managing director John Guscic.
Webjet said the third quarter of FY22 is currently tracking ahead of the second quarter. The company said it expects to be back at pre-Covid booking volumes by the second half of FY23.
Shares in Webjet
(ASX:WEB) are trading 2.3 per cent higher at $5.72.
