Webjet result exceeds market expectations

Robert Frost

OC Funds Management

Webjet (ASX:WEB) announced a result that exceeded market expectations driven by an outstanding performance from the B2C division where TTV margin accelerated by 0.6% in the second half as a result of strong operational leverage brought about by continued market share gains. But the result itself was somewhat overshadowed by a £21m deal signed in its hotel business which provides hotel inventory to travel agents. The deal with large UK-based travel company, Thomas Cook, involves WEB taking over Thomas Cook’s 3000 hotel supply contracts and in turn WEB entering a minimum five-year deal to supply these hotels, and its other hotels, to Thomas Cook. This provides WEB’s B2B division a material step change in scale, as well as directly related financial benefits (not material until FY19), providing us greater transparency on continued high EPS growth into the future for the company. (VIEW LINK)


1 stock mentioned

Robert Frost
Head of Investments
OC Funds Management

Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.