WEBJET SOARS ON THE ASX WITH PROFIT RESULT
Written on the 18 August 2016 by Melbourne Business News
WEBJET (ASX: WEB) has posted a record profit for the full year.
The Melbourne-based travel booking company's shares jumped 20 per cent upon the announcement today to around $9.65.
Webjet also announced it will partner with Thomas Cook, a leading European holiday company, on a new distribution agreement.
Webjet managing director John Guscic attributes the profit rise of 27 per cent, to $22.2 million, to strong organic bookings and gaining greater market share during the year in both the digital retail and digital wholesale divisions.
"Webjet has now reported 27 months of consecutive record TTV, with bookings outperforming the market by more than five times and international bookings continuing to demonstrate superior growth," Guscic says.
"In order to accelerate the digital wholesale division, we invested 5 million during the year to build our direct contracting, increased sales force across all businesses and undertake preparatory work in relation to the distribution agreement with Thomas Cook.
"The agreement provides a unique opportunity to significantly expand our digital whole sale business in Europe across the next five years and beyond."
As part of the deal, Webjet will pay Thomas Cook AU$35 million for the transfer of 3000 hotel contracts across the group to Sunhotels.
The company will pay a final dividend of 8c per share, taking the full year dividend to 14.5c per share.
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