AS with discount doss house agent Wotif, the internet-only travel intermediary is reaping the benefits of an early take off on the online runway.
Webjet yesterday reported June-quarter revenue (total transaction values) of $49.3 million, compared with the previous $23.7 million.
Revenues for the 12 months to June 30 were $172 million, a lofty gain on the previous $77 million.
Considering the flat state of the overall travel market, in World Cup terms it's a case of Webjet 1, traditional agents 0 (and with no unfair help from the ref).
Webject promises profit guidance later in the month. Broker Ord Minnett tips a net profit of $2.4 million, translating to earnings per share of 0.9c (rising to 1.6c next year).
Webjet's share price hasn't done much since we rated the stock a BUY at 34c on December 13 last year. But the number of shares on issue rose by 23 per cent after travel group S8 exercised (and then onsold) 56 million options.
In February S8 sold its 19.8 per cent Webjet stake, also acquired through S8's Harvey World Travel takeover, thus removing the prospect of corporate action for Webjet holders.
Criterion likes the Webjet revenue approach, which is based on a flat service fee rather than commissions.
Webjet has cash reserves of $25 million and is solidly generating more. BUY.
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