WebBeds is still forecast to increase 30%-39% in EBITDA (excl. impairment of TC receivable of $44m). - EBITDA margins are also forecast to increase - We know ex TC that WebBeds is already up 50% in TTV after 10 weeks - The growth of WebBeds is revolutionary.
Don't be surprised if another acquisition is announced very soon.
From almost $17 to under $11 doesn't justify the normalised growth of WEB.
By Feb20, nothing will be able to stop the upward momentum.
TC's liquidation saw 2.8% of the company value lost today however its EBITDA margins will increase and we could see growth in other areas to replace lost TC profit.
My estimate of FY20 NPAT pre one-offs is a conservative $100m (<25% rise from FY19), valuing WEB at 14 times earnings. TC probably cost WEB around $10m in NPAT. Overall a screaming buy. Tell me a business that experiences a negative announcement but still looks attractive .... Webjet
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