Webjet Limited

FY18 EPS Guidance Remains Unchanged: Webjet Ltd. (ASX: WEB) released an update on EPS guidance that remains unchanged against as reported by Bloomberg on softening of the group’s guidance. With this news, the stock price edged up slightly on April 18, 2018 with an 11.7% fall of last one month. Besides this, the company has presented at the Goldman Sachs small and mid-cap conference highlighting its business prospects. Webjet is a digital travel business with a strong presence in both its markets i.e., global consumer market through B2C and wholesale market through B2B, and this has taken a spotlight this reporting season. The company is currently the fastest growing B2B player in the world, significantly outperforming market growth rates in all regions and continuing to gain market share among the peer groups. WebBeds is the no. 2 global player with less than 3 percent of total global market share. The company sees significant market growth potential with the global market representing over US$50 billion total transaction value (TTV) per year. In the 6-months’ period to 31 December 2017, the Company’s Continuing Operations delivered a significant uplift in all key financial metrics over the prior corresponding period with TTV, Revenue, EBITDA and NPAT up by 54.9%, 52.2%, 62.8% and 25.4% respectively. However, FY18 EBITDA guidance is on track to deliver more than $3 Bn TTV.

Recently, the Group has announced the appointment of Tony Ristevski as WEB’s Chief Financial Officer (CFO), effective from 21 May 2018. He will replace the current CFO and Company Secretary, Michael Sheehy, who is leaving to pursue other opportunities. The company has started to find a new Company Secretary and an appointment will be announced in due course. Michael Sheehy will remain as Company Secretary until 31 July 2018. On the other hand, UBS Group AG and its related bodies became the substantial holder of the Group since March 29, 2018, by securing 6,777,836 securities with 5.72 percent of the voting power. Additionally, Challenger Limited and its entities also became a substantial holder of WEB in March 2018 by holding 5,942,134 securities with 5.0 percent of the voting power. Despite the stock price fall seen in past few days, WEB still looks to be little “Expensive” at the current price of $ 10.900.
 

No. 2 Ranking at Global Space with less than 3% global market share (Source: Company Reports)

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