cracking result, page-10

First Read: WebjetLimited "UBS SnapShot: 1H19 Results" (Buy) Plumbe

ONE LINER

A strong result – in-line with UBSe, which on first cut suggests u/lyingorganic EBITDA growth of +16%, or +21% adj for FX loss. Strong performance fromEurope B2B and early Euro summer indications "show a strong rebound".TC the one disappointment.

KEY NUMBERS

Revenue $175m (+33% yoy / -1% vs UBSe $176m). EBITDA $58.0m (+42% yoy /-1% vs UBSe $58.3m. NPATA $38.3m (+61% yoy / +1% vs UBSe $38.1m). Interim DPS8.5cps (UBSe 12.5cps).

RESULT HIGHLIGHTS

1) Webjet rev +12%, EBITDA +11% (vs UBSe +11%), o/performing mkt growthby ~3x;2) Online Republic rev +8%, EBITDA +14% (UBSe +7%);3) B2B rev +72%,EBITDA +136% (UBSe+128%), but organic TTV +21% and EBITDA +24%;4) B2B Europeorganic TTV +22% vs mkt +2% and improving EBITDA margins;5) Corp costs included$1.8m FX loss to unwind hedging book;6) Operating CF of -$26.1m (UBSe -$18.7m),h/line conversion -7%, but normalised conversion (pre I&T) 95% (adj. for$53m ERP payments)

VALUATION

Our $20.20 PT is based on our blended 1yr fwd adjusted PER valuation of$17.39 (50%) and $22.99 DCF valuation (50%).

GUIDANCE

Management reconfirmed FY19E guidance of at least $120m EBITDA ($110munderlying + $10m DOTW). Targeting 3x mkt growth for B2C and 5x for B2B. FY20EThomas Cook TTV $300-450m (UBSe $526m). TC + DOTW + new Asia Pac opportunitiesto deliver > $40m in FY20E (vs UBSe $46m).

UBS COMMENT

A very solid result and outlook commentary (particularly around Europe)should be much stronger than market feared. U/lying growth stronger vs UBSe,but TC expectations disappointing (~$6m below UBSe, but this is only -3% ofFY20E EBITDA).