# WEB - Webjet Limited



## whooyeah (25 January 2006)

I have been watching webjet for a while; working in an online environment i noticed them for their business model. Which of late has been quite fruitful.

I further research i found out that WEB has no debt with all its cash in the bank.  This coupled with the low running overheads of the online environment ensure they have room to grow and reinvest all profits. 

Over the past 5 years the average investor return has been 40.2%
The intrinsic share value is $0.55, last year it outperformed all of its targets.

I bought today at 0.37.

Definitely will buy more when i get some more cash.


----------



## Richard Willoughby (25 January 2006)

*Re: Is WEB undervalued?*

i think they are, announcement today says revenue grew 200% last year they continue to put the runs on the board, report due any day now should be excellent. 
   regards tricky


----------



## nizar (25 January 2006)

*Re: Is WEB undervalued?*

yeh i been watching this stock for a while now, but not holding... but i agree that it does seem undervalued, especially seeing its potential..

i think it will do well esp as qan cut flight centre commissions and also in one of their reports they said they will start a marketing campaign soon which is good as i dont think many ppl know of this service...


----------



## whooyeah (25 January 2006)

*Re: Is WEB undervalued?*

yeah i saw an add on late night tv the other day. 

hopefuly they will use some of that cash on a branding campaign, though they seem to be quite conservative with spending.

I also heard that due to past losses they wont have a tax bill for a while.


----------



## Stan 101 (25 January 2006)

*Re: Is WEB undervalued?*

Web is certainly an interesting one. I've bought in and sold several times between 32c and 40c. Advertising is required as there are very few mainstream people getting the message from my megre experience.
It is a great model, with a slick front end for the layfolk to use easily.
I nice advertising budget with a slick campaign would work twofold. People would use the company and savvy mum and dad investors may buy the stock...

let's see in 6 months


----------



## TjamesX (7 February 2006)

Still been watching this one, although I don't have any.....

A lot of movement. S8 has got rid of holding it aquired through HWT. Thorney group has increased holdings again.

If you want my tip ---- things are not all good for webjet   

1) Airlines are no longer providing commissions (OK we knew that - but I think this will hurt a lot more than they are letting on)
2) Webjet is having to spend on advertising to keep growing - and its selling itself as a place to book flights, not as an integrated travel agency.

Before they stopped disclosing their monthly bookings, webjet sales through bookings were on a steep upward trajectory. Below are a couple of reasons I think this trajectory will severly plateau or even reverse as a result of personal experience with their site;

1) Webjet is no longer the cheapest way to book domestic flights!!!!! On a return trip to Melbourne (from Adelaide) webjet quoted $226 (with a webjet commission of $17) flying with virginblue. The same flight numbers booked direct on virginblue's site was $205...... so webjet states they don't need the airlines commission but are now slapping on their own - I'm sure just as quickly as people flocked to the site, people will now leave.

2) funny buggers are being played with the airline comparison costs. Qantas often show up as cheaper when comparing the flights - but by the time you got to the checkout quote, the flights are more expensive than virgin...... ??? I am unsure if this is Qantas playing with the system (by adding taxes onto the flight costs) or this is done with webjets knowledge......

The reason anyone would book with webjet now????????

I would get ready for some rude shocks over the next year unless they change their business model

My thoughts
TJ


----------



## britishcarfreak (7 February 2006)

I have to agree with this last statement.

I am a director of a web development firm and have plenty of knowledge on building web based businesses.

Advertising is going to cost them in one way or another.  If they don't do it properly the cost will be lack of market recognition and increasingly weaker sales.

If they do it properly it's going to cost them at the agencies and in the placements themselves i.e. advertising nation wide to a broad target audience won't be cheap.

Couple this fundamental market awareness issue with the fact that they're losing their basic point of difference in the marketplace (cost advantage) and this means they're on the way out.

I met an exec from Virgin Blue recently and asked him about webjet and he said.... " that sort of activity doesn't really bother me... we'll get the sales anyway"  I interpreted this as they would neither support people like webjet nor would their demise affect them in anyway.  When I questioned the exec about  building up some greater loyalty to Virgin Blue (as an example of testing webjets sales profile) he was just about to role out their corporate plans and so on.  In fact Brett Godfrey (CEO of Virgin Blue) spoke later than day at a seminar and detailed his plans to secure more flights - cost conscious business people and so on - through some membership plans.  In my opinion these sorts of targetted airline membership deals won't do any good for people like webjet as some loyalty will come in.  This in my opinion means that regular travellers will stick with safe easy same 'ol same 'ol and WEBJET and others like them will just get the cost savers on the occasional family trip.

WEBjets model of trying to offer all bookings in one place is interesting but I don't know too many people that really want all that done for them (car - accomm - flight etc).

Anyway,... sorry for rambling a bit... but I don't see Webjet as a strong business model.  It may well be cost effective as most web-businesses are, but given that they're losing cost advantages (i.e. market difference - and or profit margin per activity) and they're also going to have to increase spending to maintain customer base - I don't think they'll grow too much.  Surely other established channels for travel stuff (that already have big ad. budgets) will be able to build a better competing product to webjet in time.  The hard truth with web based businesses - or any other form of technology based business is that it's hard to build in some monopolistic factor (compelling and non-repeatable edge) as so many people can get their team together and copy your functionality in a short time.

The better backed, better marketed products will win.

The question of whether it's good value at present is not something I'm smart enough to answer.  I've done a few trades up and down the 30-40c ramps and will probably do another.  I'd be reluctant to jump in in the high 30's and expect much more upside.

Given that it seems on a slide back to mid 30's and theirs bound to be some shake up and unsettled punters responding to the SE8 sell out I'd guess we'll see this as an opportunity to jump in at low 30's and pull atleast 20odd% in a few weeks.


----------



## TjamesX (7 February 2006)

britishcarfreak said:
			
		

> WEBjets model of trying to offer all bookings in one place is interesting but I don't know too many people that really want all that done for them (car - accomm - flight etc).




As it sits I think this is their only point of differentiation at the moment. But the bottom line is you can now buy cheaper direct from the airline websites and there are plenty of hotel accom websites around to book cheap accom.... which only leaves the car rental as real convenience....

Basically for the reasonably web savvy, I don't think webjet makes sense for domestic travel and accom anymore. This leaves overseas travel - and I for one can't picture myself booking that over the net without talking to a person about it, couple this with flight centres extensive network for this type of travel and the fact they are under pressure to perform.

Whoever is advising Pratt on his holdings (via Thorney group) in WEB..... well I hope they some other info that paints a better picture.... 

TJ


----------



## britishcarfreak (8 February 2006)

Also... how long will their tax effective position last?  Having a number of losses means some fantastic profit potential in the short term but this only lasts so long (the line of credit so to speak with the ATO will dry up).  

I haven't watched the WEB announcements too closely - but I did read the annual report.  Where's the budget for marketing???

Another thing that struck me as odd was the costs for web development work was litteraly peanuts.  I think it was like $30k or something.  Now if they had good dev staff internally I'd understand that outsourcing might form say 10% of their expenditure on system builds (new features, support, extensions etc.) - but from what I remember it detailed that an external web agency did all the build work on the actual product.  This is sus.


----------



## Richard Willoughby (24 February 2006)

great 6 monthly report, net profit up nearly 1400%. record jan 06 trans +all time record for 1 week in feb 06. what do they have to do to inprove sp? they continue to excel..
  cu tricky


----------



## burmans (5 July 2006)

TjamesX said:
			
		

> As it sits I think this is their only point of differentiation at the moment. But the bottom line is you can now buy cheaper direct from the airline websites and there are plenty of hotel accom websites around to book cheap accom.... which only leaves the car rental as real convenience....
> 
> Basically for the reasonably web savvy, I don't think webjet makes sense for domestic travel and accom anymore. TJ




The trouble with this statement is it fits into the assume everyone is like you theory. I've been assisting a few people with their flight/accomodation/car rental queries over the web recently and while it's certainly true that by researching accross a number of websites you can get a better deal, I'm finding many people are crying out for a central place to do this and are quite willing to pay out the $15 or so for one central site.

There are many many people for whom time is money and there is no doubt that searching multiple web sites does take time.



			
				TjamesX said:
			
		

> This leaves overseas travel - and I for one can't picture myself booking that over the net without talking to a person about it, couple this with flight centres extensive network for this type of travel and the fact they are under pressure to perform.
> 
> Whoever is advising Pratt on his holdings (via Thorney group) in WEB..... well I hope they some other info that paints a better picture....
> 
> TJ


----------



## burmans (5 July 2006)

TjamesX said:
			
		

> Still been watching this one, although I don't have any.....
> 
> A lot of movement. S8 has got rid of holding it aquired through HWT. Thorney group has increased holdings again.
> 
> ...




Don't you hate having your predictions in print, the ongoing market announcements from WEB suggest both their bookings and revenue are continuing to increase markedly. So someonone is booking with these guys.


----------



## lewstherin (5 July 2006)

I use Webjet all the time.  I just don't book anything through them.
Simply look up the cheapest fare provider, then go direct to that airline/hotel/car company's site and book directly there.  This way I avoid the Webjet fees, and in fact I've gotten better bundle deals (car+flight) off Virgin Blue than advertised on Webjet.


----------



## 3 veiws of a secret (5 July 2006)

Well I just booked flights for 8 people to QLD ....tried Webjet ,then Zuji.....then rang my local travel agent I use often. 
Interestingly I agree with your posts  re WEB fees!!!!! but nut this one out .Travel agent calls me back if I pay within 48 hours cash ! they will match Zuji.com ,and do a better deal for a peoplemover van also !!!!
So is WEB really sharpening it's pencil or the local travel agent -its got me buggered ! 
Coincedentally Huntleys has this as a BUY ( I think !!) that' s why I posted on this thread. Alas no charts,or other words of wisdom! :bowser:


----------



## burmans (5 July 2006)

lewstherin said:
			
		

> I use Webjet all the time.  I just don't book anything through them.
> Simply look up the cheapest fare provider, then go direct to that airline/hotel/car company's site and book directly there.  This way I avoid the Webjet fees, and in fact I've gotten better bundle deals (car+flight) off Virgin Blue than advertised on Webjet.




Yes I do this too, but that's missing the point. Just because we experienced web users do this does not mean what this site does not offer a valuable service for some. There are many, many examples I can think of where it's not the cheapest service that wins, it a cheapish service with good facilities. Persoanlly I think their volume numbers indicate they are providing a useful service regardless of whether I will book through them!

Assuming everyone else behaves like you do is in my experience a very poor way of judging companies.


----------



## gregcourageous (24 April 2007)

*WEB - Webjet*

Hello, I've heard a little bit of banter around the place regarding webjet being a takeover target, by who i don't know. Has anybody been following that may have some more info? 

Cheers.


----------



## BIG BWACULL (24 May 2007)

*Re: WEB - Webjet*



gregcourageous said:


> Hello, I've heard a little bit of banter around the place regarding webjet being a takeover target, by who i don't know. Has anybody been following that may have some more info?
> 
> Cheers.



Nah no news sorry, been holdin for a while and finally yesterday some interest 33.5c open to 36c close on 2 million shares, i smell a PLANITONEARTH announcement is due sniff sniff cause its overdue but who knows whats goin on
At least their makin money and are lookin to start paying dividends to share holders Wahoo .Oh by the way webjet dont own any Uranium tenements LOL


----------



## bigdog (24 May 2007)

BIG BWACULL said:


> Nah no news sorry, been holdin for a while and finally yesterday some interest 33.5c open to 36c close on 2 million shares, i smell a PLANITONEARTH announcement is due sniff sniff cause its overdue but who knows whats goin on
> At least their makin money and are lookin to start paying dividends to share holders Wahoo .Oh by the way webjet dont own any Uranium tenements LOL




I hope that "gregcourageous" suggestions come about.
--I am now watching for unusual after market transactions!

Perhaps David Clark is buying WEB shares!!!

Back in November 2006 David sold shares three days after share issue and the SP dropped from 38 to 36.5 cents yesterday

Nov 21 AXS ANN - WEB issues 2,000,000 @ 0.17493 = $349,860 to Managing
Director (David Clark) pursuant to ‘Resolution 4’ approved at Annual General Meeting held 10th November 2004.

Nov 24 ASX ANN - David Clark sells 1,938,226 (ord. shares) for $731,486 

No. of securities held after change 161,774 shares and 4,000,000 options

I hold WEB


----------



## GRTRADER (17 July 2007)

Anyone know what the deal with webjet is - there shares are now worth around $1.30?

Seems they jumped a huge amount in June?


----------



## bigdog (17 July 2007)

GRTRADER said:


> Anyone know what the deal with webjet is - there shares are now worth around $1.30?
> 
> Seems they jumped a huge amount in June?




Share restructure of five shares now converted to one share

So divide the $1.30 by five and old share equivalent is now worth 26 cents and well below the mid thirties prior to the change
-- we have all gone backwards!!!!

WEB will pay an unfranked dividend of 2 cents for new shares


----------



## deftfear (18 July 2007)

I thought the consolidation was only 4:1, not 5:1 bigdog. The company also bought back some shares from a substantial shareholder, not sure how many but over 5% for sure.


----------



## bigdog (18 July 2007)

deftfear said:


> I thought the consolidation was only 4:1, not 5:1 bigdog. The company also bought back some shares from a substantial shareholder, not sure how many but over 5% for sure.




Yes you are right
the 4 to 1 share consolidation will take place on Thursday, 7 June 2007.

$1.30 / 4 = 32.5 cents on old basis.


----------



## GRTRADER (18 July 2007)

Thanks - thats pretty much what i thought - i dont hold but someone in my family does and they said they still had the same amount of shares - but that was before WEB came back on the asx - so they have probably now been sorted.


----------



## bigdog (2 August 2007)

WEB SP has been very disappointing over the years despite being a recommended "buy" for over 12 months (by Westpac Broking).

I look forward to the SP increasing and David Clarke not selling his bonus shares two days after receiving them in November 2007!
-- the SP dropped in Nov 2006 after David's last sale!!

Herald Sun report today covered ASX ann below:
http://www.news.com.au/heraldsun/story/0,21985,22173874-664,00.html

*Internet travel agent boosts profit*
August 02, 2007 12:00am

ONLINE travel agent WebJet expects to continue its upward climb this financial year, pointing to a satisfactory trading environment after boosting its annual net profit by almost 70 per cent.

Webjet yesterday reported a net profit of $4 million for 2006-07 - a 67 per cent increase on the $2.4 million it reported the previous year.

And the company expects further growth this year, despite the sensitivity of travellers to vagaries such as interest rates and the price of petrol.

Webjet has forecast net profit after tax to rise a further 30 per cent to about $5.2 million in 2007-08.

The company also expects earnings before interest, taxes, depreciation and amortisation to grow to $6.4 million, versus $3.7 million in 2006-07, and total revenue to jump to $22.3 million from $17.5 million last year.

Its total transaction value (TTV) soared 45 per cent to $250 million.

The overall strong result meant Webjet could declare its first dividend of 2 a share.

Managing director David Clarke said the results coincided with an increase in the size of the company's market.

"As a consequence of a pre-alerted aggressive marketing campaign during the year, Webjet added, in this year at a TTV level, approximately $78 million -- an amount the equivalent to the total turnover in financial year ended 2005," Mr Clarke said.

"This increase of 45 per cent on the previous year represents a growth rate many times that of the Australian travel industry."

Full-year costs were $12.2 million compared with $8.4 million the previous year.

Most of that increase was because of Webjet's more aggressive marketing.

Despite its buoyant results, Webjet shares fell 3.4 yesterday to $1.18. 

*WEB has made a number of good ASX ann this week which include:*

01/08/2007	 	Letter to Shareholders
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744916
ANNUAL RESULTS TO 30 JUNE 2007
• TTV up 45% to $250M
• NPAT up 67% to $4M


01/08/2007 2007 Full Year Results Presentation
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00744918

01/08/2007 Change in substantial holding
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00745068

Thorney Holdings (D Pratt) now has increased holding to 16.78% from 14.66%


----------



## bigdog (2 August 2007)

The share market has liked the announcements of past days

SP  $1.25  	   	  +$0.07   	  +5.93% high of   	 $1.25 low of  	 $1.20  	 146,600 shares 	 $181,962 @ 	 02-Aug 12:03:48

*Webjet also launched their new website Planitonearth *

Planitonearth automatically saves your Webjet booking or search results to its' unique Trip Planner. You can then add externally booked items, plot your trip on Google Maps and share your trip with friends & family online. 

Welcome to Webjet's new online trip planner, Planitonearth. Using Planitonearth you can plan your trips by adding items from Webjet search results, Webjet bookings, external travel services and other items such as meeting friends and catching taxis.

https://securetravel.webjet.com.au/PLANIT/Login.aspx?ReturnUrl=/PlanIt/Default.aspx


----------



## bigdog (6 September 2007)

ASX ann today
06/09/2007	*Trading Halt*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00756755

Pending release of announcement and remain in pre-open until Monday or when ann released.

Can only guess the ANN will be VG based upon increasing SP!

Yesterday's SP was all time high of $1.41 since share restructure on June 25.
-- any suggestions?
-- I always considered WEB as potential low cost target (IMO)
-- they use to have 19 staff two years ago!

Date-----	 Close   	Volume  
05-Sep-07	 1.41 	569,430
04-Sep-07	 1.35 	187,218
03-Sep-07	 1.35 	221,396
31-Aug-07	 1.28 	56,506
30-Aug-07	 1.27 	50,775
29-Aug-07	 1.27 	137,111
28-Aug-07	 1.28 	107,962
27-Aug-07	 1.26 	366,297
24-Aug-07	 1.24 	221,753
23-Aug-07	 1.23 	304,779
22-Aug-07	 1.21 	490,939
21-Aug-07	 1.18 	1,019,028


----------



## bigdog (6 September 2007)

ASX ann

WEB  	1:21 PM  	*Intention to Make Takeover Bid*
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00756869

6 September 2007
*Webjet Limited to acquire travel.com.au Limited*
Webjet Limited (Webjet) (ASX: WEB) and travel.com.au Limited (TVL) (ASX: TVL) today announced a proposal under which Webjet would acquire 100% of the issued shares in TVL under a cash and scrip takeover offer. The acquisition is to be implemented by Webjet making a recommended off-market takeover bid for all of the issued ordinary shares in TVL.

Webjet will offer TVL shareholders:
• $0.10 cash; and
• 0.23 Webjet shares, 
for each TVL share.

Webjet's offer will be subject to the conditions set out in Annexure 1, which include (among others):
• Webjet acquiring 90% of TVL shares;
• receipt of all regulatory approvals, including any approval required from the Travel Compensation Fund;
• no restraint that adversely affects Webjet’s offer;
• certain conduct of business conditions;
• no prescribed occurrences; and
• no material adverse change.

Webjet's offer will extend to any new TVL shares issued during the offer period due to the exercise of TVL options in accordance with their terms.

_Implied value_
Based on Webjet's closing price of $1.41 on 5 September 2007, the implied value of Webjet's offer is $0.424 per TVL share. This values TVL at approximately $42.3 million, excluding unexercised TVL options. The implied value of $0.424 per TVL share represents:
• a premium of 21.2% to the closing price of TVL shares on 5 September 2007;
• a premium of 37.0% to the one month VWAP of TVL shares prior to the date of this announcement; and
• a premium of 29.3% to the three month VWAP of TVL shares prior to the date of this announcement.

The cash component of Webjet's offer will require Webjet to pay a total of approximately $10.0 million to TVL shareholders. This will be funded from Webjet's internal cash reserves.

The scrip component of Webjet's offer will result in the issue of approximately 22.9 million new Webjet shares. Following completion of the takeover, TVL shareholders will own approximately 23.4% of Webjet's expanded capital.

While the cash component of Webjet's offer provides certainty to TVL shareholders, the value of the scrip component depends on the market value of Webjet shares. Therefore, the implied value of Webjet's offer will fluctuate during the offer period depending on movements in the market price of Webjet shares.

_TVL directors' recommendation and intentions_
TVL's independent directors have evaluated Webjet’s proposed offer and have unanimously agreed to recommend Webjet's offer, in the absence of a superior proposal and subject to the independent expert to be engaged by TVL concluding that Webjet's offer is fair and reasonable.

Subject to those same qualifications, all directors of TVL intend to accept Webjet's offer for all of the TVL shares they hold or in which they otherwise have a relevant interest.


----------



## bigdog (7 September 2007)

http://www.smh.com.au/news/technology/webjets-bid-for-travelcomau/2007/09/06/1188783414095.html

Webjet's bid for travel.com.au
September 7, 2007

THE online travel agency Webjet is making a $42.3 million takeover bid for travel.com.au in an effort to create Australia's leading online travel agent.

Webjet is offering 10c cash and 0.23 Webjet shares for each travel.com.au share. The offer implies a value of 42.4c per share.

Travel.com.au's independent directors have unanimously recommended the offer, barring a superior proposal and subject to an independent expert's report concluding that it is fair and reasonable.

Travel.com.au, which owns the travel booking website lastminute.com.au, said the combination of the companies would create a "highly profitable, industry-leading online travel agent".

"Directors believe that the offer proposed by Webjet provides … shareholders with the opportunity to benefit from the increased scale and profitability that a combination of the two businesses would achieve," said the chairman of travel.com.au, Roger Sharp.

Webjet will fund the cash component of its bid from reserves. If the takeover succeeds, travel.com.au shareholders will own about 23.4 per cent of the combined group.

Webjet said it viewed its takeover target as a valuable and strategically significant addition. "It will provide Webjet with the opportunity of realising even more substantial economies of scale," said the managing director, David Clarke.


----------



## bigdog (28 September 2007)

SP today was down 4.5 cents
WEB  $1.55  	   	  -$0.045   	  -2.82   	 with high of	 $1.595  	 	 264,689 shares 	 $415,092  	@ 28-Sep 16:10:05

ASX ANN
28/09/2007	 	Update on Webjet Offer for TVL
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00764713
*UPDATE ON WEBJET OFFER FOR TVL*

Webjet notes the announcement by TVL earlier today that it has received an unsolicited approach by an unnamed third party that may be interested in making a competing bid for TVL and that no assurance can be given that such party will proceed with an offer for TVL.

The Webjet offer for TVL announced on 6 September 2007 is the only offer for TVL that has been publicly proposed. Webjet's offer has been unanimously recommended by the directors of TVL, in the absence of a superior proposal. If TVL receives a competing proposal, Webjet has the right to revise its current offer to match or better the competing proposal prior to TVL publicly endorsing that competing proposal.

In addition to being the only offer for TVL that has been publicly proposed, Webjet's offer is subject to minimal conditions. Subject to the fulfilment or waiver of those conditions, Webjet's offer will deliver compelling value to TVL shareholders, together with an opportunity (through the scrip component of Webjet's offer) to participate in the benefits that a merger of the businesses of Webjet and TVL would deliver.

In addition, Webjet notes that it has a relevant interest in 19.9% of TVL shares through a pre-bid acceptance agreement, particulars of which were disclosed to ASX on 7 September 2007.

The documentation in relation to Webjet's offer will be sent to TVL shareholders shortly. This will comprise a Bidder's Statement and offer from Webjet and TVL's target's statement, in a single consolidated booklet. TVL's Target's Statement will contain an independent expert's report expressing an opinion on whether Webjet's offer is fair and reasonable.

Travel.com.au receives third party offer
http://www.smh.com.au/news/Business...ird-party-offer/2007/09/28/1190486551172.html
September 28, 2007 - 3:49PM

Travel.com.au, the takeover target of Webjet Ltd, has received an unsolicited third party proposal.

Travel.com.au did not name the company and said "no assurance can be given that such party will proceed with an offer for the company".

Earlier this month, Travel.com.au's directors recommended Webjet's offer of 10 cents cash and 0.23 Webjet shares for each travel.com.au share.

The offer values the company at $42.3 million.

Travel.com.au, which owns travel booking website lastminute.com.au, said it will continue to comply with the obligations of its agreement with Webjet.


----------



## bigdog (2 October 2007)

*Wotif launches bid for travel site*
http://www.smh.com.au/news/technolo...for-travel-site/2007/10/01/1191091029770.html


Scott Rochfort
October 2, 2007

AUSTRALIA's largest online hotel booking service, Wotif.com, has launched a $49.8 million takeover offer for Travel.com.au, trumping a rival bid made by online competitor Webjet.

Wotif said yesterday it planned to offer Travel.com.au shareholders 50c a share in either cash or scrip, which it said was 9.5 per cent higher than the scrip bid Webjet has on the table.

"It's a pretty big increase for [Travel.com.au] shareholders," said Wotif's chief operating officer, Robbie Cooke, who also noted the share price was 35c before Webjet's offer received the backing of Travel.com.au's board a month ago.

"What we bring to the table for [Travel.com.au] shareholders has some attraction too," Mr Cooke said.

He said Wotif had "direct relationships" with 10,000 hotels worldwide, which would greatly boost what was offered on Travel.com.au's online hotel website, lastminute.com.au.

However, there could be some complications to Wotif achieving its condition of snaring 90 per cent of the online travel retailer.

Aside from the fact Travel.com.au's board has backed the Webjet offer, the company's largest shareholder, Co-Investor Capital Partners, has entered into a deal to sell its 19.9 per cent stake to Webjet.

"Certainly Co-Investor is not in a position to simply jump ship because there's a new offer being announced," Travel.com.au's chairman, Roger Sharp, who also runs the Sydney investment company, said.

But Co-Investor is free to renege on the deal if Webjet does not increase its offer within 10 days of Travel.com.au dispatching its bidder's statement.

Webjet did not return the Herald's calls yesterday, and is yet to indicate whether it could match or better Wotif's offer.

The company's second-largest shareholder, Netus, also backed Webjet's lower bid last month.

Asked what he thought of the Wotif offer, the Netus founder and Travel.com.au director, Daniel Petre, said it would be "inappropriate to comment" ahead of today's board meeting.

Wotif's plans to buy the nation's fourth-largest travel website represent a big challenge to Flight Centre. But Flight Centre has played down any notion it should enter the battle for Travel.com.au to protect its turf.

"We've got a website that is already the No. 1 site in Australia," a Flight Centre spokesman, Haydn Long, said, adding the company's recent focus had been on expanding into the corporate and "wholesale" end of the travel market.

Travel.com.au shares rose 3c to 58c on hopes Wotif's bid could trigger a bidding war for Travel.com.au. Webjet fell 2c to $1.53, while Wotif shares rose 9c to $5.34.

Wotif shares have nearly trebled since it listed in June last year and the company recently exceeded its prospectus forecasts by posting a 60 per cent lift in full-year profits to $26.4 million.


----------



## bigdog (3 October 2007)

Todays news
http://www.smh.com.au/news/business...avelcom-pursuit/2007/10/02/1191091114432.html

*Third vehicle joins travel.com pursuit*
Scott Rochfort
October 3, 2007

THE online hotel booking service Wotif's $49.8 million takeover bid for travel.com.au is already under challenge, after the Melbourne-based tour group Australia Online Travel emerged with a 7.8 per cent stake in the online travel portal.

Amid speculation AOT wants to grab a 10 per cent blocking stake in travel.com.au, the company's owner, Andrew Burnes, said: "We're building a stake in the company. That's all I've got to say about it." Mr Burnes also sits on the Tourism Australia board.

Travel.com.au is already subject to two rival takeover bids and its board last month endorsed the initial, lower, bid from Webjet.

As consolidation of the online travel sector accelerates, there is speculation Mr Burnes wants to build a blocking stake to force either Wotif or Webjet to the negotiating table.

It has been suggested Mr Burnes might want to strike a deal with the new owners of travel.com.au, which may involve a joint venture with his own travel websites Travelmate and Need It Now.

Travel.com.au declined to comment on Wotif's 50c-a-share offer.

"This really does require the travel.com board to indicate what it's going to do," said Wotif's chief operating officer, Robbie Cooke. Mr Cooke said he had yet to talk to travel.com.au about his company's proposed offer.

Webjet, which has a lower, 44.5c cash and scrip offer on the table, has not returned the Herald's calls for the past two days.

But even before AOT disclosed it had built up its stake - after appearing as a substantial shareholder only last Thursday - travel.com.au shares rose 2c to 60c yesterday, well clear of Wotif's offer.

The chairman of travel.com .au, Roger Sharp, admitted it could be difficult for him to endorse automatically the higher Wotif offer.

Mr Sharp, who runs travel .com.au's largest shareholder, Co-Investor Capital Partners, has already entered into a deal to sell its 19.9 per cent stake to Webjet.

Aside from making an easy profit from an impending bidding war, there are rumours Mr Burnes's AOT might be in favour of Webjet taking control of travel.com rather than Wotif. AOT and Webjet have engaged in joint marketing deals in the past.

Flight Centre has so far played down its interest in launching a rival offer to protect its No. 1 position in the fast-growing online travel market.

The Queensland property and travel company MFS, which bought out Australia's largest travel agency franchise operator, S8, last year, did not respond on whether it could have an interest.


----------



## bigdog (4 October 2007)

News today

http://www.smh.com.au/news/business...for-travel-site/2007/10/03/1191091194078.html
*Suitors dig deeper in fight for travel site*
Scott Rochfort
October 4, 2007

AFTER trading at a fraction of its listing price and having never posted a profit over the past eight years, the once unloved travel.com.au has suddenly become a highly sought stock.

Shares in the flight and hotel booking website are set for another surge this morning, after its online rival Webjet indicated late yesterday it was preparing to better Wotif's $49.8 million offer for the travel portal.

Webjet broke its two-day silence over Wotif's higher bid to inform the market late yesterday that it had "secured commitments" to raise $15 million in fresh equity from a range of "institutional and other investors".

After its original 44.5c-a-share friendly takeover bid was trumped by Wotif's 50c-a-share offer on Monday, a Webjet statement said: "The funds raised in conjunction with existing resources means Webjet is in a strong and flexible position to consider the nature and structure of the revised bid."

Webjet's managing director, David Clarke, and the company's head of investor relations, David Turner, declined to discuss Webjet's plans. "I don't talk to the press," Mr Turner said. "My official brief is no comment."

Expectations of a third bid for travel.com.au intensified yesterday, even before Webjet released its statement amid signs the Melbourne tour operator AOT was building a stake in travel.com.au.

Travel.com.au shares rose 2c to 62c yesterday, well clear of Wotif's latest offer and their mid-August low of 25c.

The company listed at $1.25 in 1999 and at the time spoke of holidaymakers switching from booking trips through their local travel agent to booking online instead. But with a small proportion of people booking international trips online eight years later, only now does it appear travel retailers are seeing the importance of having a strong market position online.

Webjet is expected to use the extra $15 million in funds to lift the cash component of its offer, presently valued at $43.5 million.

A new offer from Webjet could help travel.com.au's chairman, Roger Sharp, avoid making any awkward decisions. Mr Sharp heads travel.com.au's largest shareholder, Co-Investor Capital Management, which has struck a deal to sell a 19.9 per cent stake in the company to Webjet.


----------



## bigdog (4 October 2007)

ASX ANN
04/10/2007		Variation of Takeover Bid
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00766541

Webjet, Australia’s multi-award winning agency² today announced an improved proposed offer to shareholders of Travel.com.au Limited (TVL) under the takeover bid for TVL that Webjet announced on 6 September 2007.

------------------------------Improved proposed offer Original proposed offer
Cash amount per TVL share--------------------- $0.22 -------$0.10
Number of Webjet shares per TVL share ---------- 0.21 ------- 0.23
Implied value¹ --------------------------------$0.5447 ------ $0.4581

Webjet has 19.9% of shares in TVL as advised to the market on 7 September 2007 through a pre-bid agreement with Co-Investor and its associated entity.


----------



## bigdog (11 October 2007)

ASX ANN today

11/10/2007	TVL: Proposed offers for TVL - Change of Recommendation
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00768634

*Proposed offers for TVL Change of recommendation*
11th October 2007
travel.com.au Limited (TVL) refers to the previous announcements regarding the proposed offers for all of the shares in TVL by Webjet Limited (Webjet) and Wotif.com Holdings Limited (Wotif).

On the 10 October 2007 the board of directors of TVL resolved to change its unanimous positive recommendation for the proposed offer by Webjet as detailed in the market announcement on 6 September 2007 (Original Webjet Offer).

The board of TVL have withdrawn their support for the Original Webjet Offer but are continuing to consider the revised proposals from Webjet and Wotif and have instructed TVL’s advisers to explore the terms of the revised proposals with Webjet and Wotif.

The board of directors of TVL has withdrawn its recommendation for the Original Webjet Offer as the board unanimously considers the revised proposals from Webjet and Wotif to be superior to the Original Webjet Offer. The board of directors of TVL have terminated the Implementation Agreement with Webjet referred to in the market announcement on 6 September 2007.

The board of directors of TVL will provide guidance to TVL shareholders as soon as they have completed their assessment of the revised proposals. In the meantime, TVL shareholders are urged to take no action in relation to the proposed offers.


----------



## tinhat (9 February 2011)

H1 Interim Results announced Today

After informing the market on Jan 5 2011 that transaction values were up 15% in the first half and that transaction fees were up 25% Webjet today released its first half results...

NPBT $7.3 M flat
NPAT $5.0 M down 4% on H1 2010
EPS 6.7c down 3% on H1 2010

The report gives some balance sheet figures but is mostly a piece of spinning bull**** including charts that show how they are actually losing market share (flat to falling) despite rising sales and heavy advertising.

No explanation of why costs have obviously gone up to erode all profit from the increased sales revenue. Instead they try to fudge the figures with an esoteric graph titled "Margins Maintained".

Today the market punished WEB and rightly so too. The share price plunged 9.5% to close at 2.21

I took a small position and bought WEB at $2.50 on 19 Jan 2011 based on a re-evaluation of the company's worth based on the Jan 5 announcement. I was actually contemplating buying WTF at the time but changed my mind to WEB based on the rosy sales figure announcement. (Webjet's presentation today actually shows that wotif is gaining market share on webjet albiet from a low base). Today I got stopped out 5c below my stop loss trigger. No big deal but it wiped out my paper profits on CBA today.

I'm quite angry at Webjet's management. I feel that I was deceived by their January 5 announcement. It was a price sensitive announcement that effected analyst recommendations and valuations. How can they not have known that costs were up and margins were down at the same time? If you put the updated sales figures announced in Jan 05 together with the guidance issued in November 2010 you would not have expected profit and EPS to be down in H1 2011.

Today's guidance is for profit to remain flat in H2 2011. Frankly, I don't think the management of this company are credible and I don't believe them. I consider the Jan 05 2011 announcement as deceptive. I find the complete lack of information concerning costs and margins in today's report unacceptable.

Here is a list of the current Board of Directors as per the webjet website along with the other companies they are involved with. I would review any investment in any company that has any of this possy of clowns involved.

*Allan Nahum, Chairman.*
This guy retired as a partner in an accounting firm in 2004 so he probably sleeps through most meetings anyway.

*David Clarke (Managing Director)*
if the information service I subscribe to is correct he still has 1,000,000 options he can exercise.

*Steven Scheuer*
*
Christopher Newman*
Chris is presently a director of four ASX listed public companies including Gunns Limited, Austereo Group, Prime Financial Group Limited,Coneco Limited and Auspine Limited.

*Don Clarke*
Don is presently a director of ASX Listed companies, Circadian Technologies Limited, and Metabolic Pharmaceuticals Limited.
*
Richard Noon*

I'm quite glad I got stopped out of WEB today. Trustworthy and honest management is an important investment criteria for me.


----------



## tinhat (10 February 2011)

Just one more thing to add to my diatribe.

On the 18th January 2011, WEB made an announcement concerning the "Webjet Global Flight Plan". In it they wrote:


As at the half year filing in February we will provide some guidance metrics on the level of
start up costs and capital commitments which are being conservatively and cautiously
managed.​ 
Well, did we get that info today? No, costings were completely missing from the report.

Honestly, the half year report is just full of the most blatant spin. You should see the graphs they have thrown into this piece of propaganda. Just an absolute disgrace. I don't know how they can expect to maintain any credibility with any serious investor.


----------



## ROE (10 February 2011)

tinhat said:


> Just one more thing to add to my diatribe.
> 
> On the 18th January 2011, WEB made an announcement concerning the "Webjet Global Flight Plan". In it they wrote:
> 
> ...




One thing I found a little worry about these business

they use your site to search for flights then they use the airline sites to book
cheaper, no middle man taking a cut.

Internet it take a few clicks to go to another stores, switching cost is CHEAP as


----------



## skc (10 February 2011)

ROE said:


> One thing I found a little worry about these business
> 
> they use your site to search for flights then they use the airline sites to book
> cheaper, no middle man taking a cut.
> ...




Exactly. I've visited webjet website many times but never bought any airfares there. Why pay the booking fee when another window with qantas.com will do the job just the same and cheaper?

I do the same thing with Wotif... but do book with them every now and then as their rates are often better than what you can get from the individual hotel websites. Not to mention that some small hotels have pretty poor booking functions.


----------



## tinhat (10 February 2011)

I've been informed that during the analyst teleconference yesterday, Webjet did not allow any questions.


----------



## Noddy (10 February 2011)

skc said:


> Exactly. I've visited webjet website many times but never bought any airfares there. Why pay the booking fee when another window with qantas.com will do the job just the same and cheaper?




Agree with the sentiments expressed.
Booked a flight direct with Virgin Blue, after checking out the Webjet site.
Found that the prices were identical, but that Webjet charged a booking fee (from memory $10 ?).
Can't understand how they(WEB) do any business.
IMO Webjet don't offer anything of value.
Just book directly with the airlines.


----------



## Eager (8 February 2012)

Half year results were released today with earnings, NPAT and dividends all up by approx 20%. A good result.

http://imagesignal.comsec.com.au/asxdata/20120208/pdf/01266673.pdf

I hold WEB.


----------



## Bazmate (13 February 2012)

Pretty happy with my little parcel too. Share buy backs, nice upgrade, steady dividend....  Big spike in share price.
Now trying to decide if it will keep going or crump


----------



## skc (2 April 2012)

Either there's a takeover rumour or a tipsheet pick, or there's a work experience student in charge of the buyback today. Up 7% on a bad day for the market. Volume is high for the company but still not that great in absolute terms. 

I find it difficult to believe that a buyback at current prices (PE >20) is good for EPS.

Then again I've been wrong about WEB since $2.5...


----------



## McLovin (2 April 2012)

skc said:


> Either there's a takeover rumour or a tipsheet pick, or there's a work experience student in charge of the buyback today. Up 7% on a bad day for the market. Volume is high for the company but still not that great in absolute terms.
> 
> I find it difficult to believe that a buyback at current prices (PE >20) is good for EPS.
> 
> Then again I've been wrong about WEB since $2.5...




I don't get WEB at all. Their website is so bad, I have no idea how they make money. You can't even edit your search criteria (change dates etc) without starting again from scratch.


----------



## Gringotts Bank (21 April 2012)

I'm liking WEB for a trade here at 3.48.  

Successfully making news highs, consistently over the last few months.


----------



## McLovin (21 April 2012)

McLovin said:


> I don't get WEB at all. Their website is so bad, I have no idea how they make money. You can't even edit your search criteria (change dates etc) without starting again from scratch.




I had to book a one way ticket to London yesterday. Being in a bit of a rush at the time, I only looked at my usual bestflights.com.au, expedia and WBB. For some reason, neither BF nor Expedia were showing an Asiana flight that was ~$3500 one way in business class, but WBB was. I had originally intended a Qantas/Finnair ticket that was about $4400, so was pleasantly surprised maybe WBB isn't so bad after all.

I will say their fees are a little steep. $30 processing fee + $20 "booking price guarantee". If I hadn't have been in a rush I could have probably just rung the airline and avoided all those fees.


----------



## DocK (13 December 2012)

Can someone enlighten me a bit re capital raisings?  I owned both Oceanic Gold (OGC) and Webjet when they went into trading halts due to capital raisings - both at roughly the same discount to last closing price.  Upon resuming trade OGC fell considerably, yet WEB opened higher.  I expected webjet's opening price to be lower after the halt due to dilution etc.  Is the difference that OGC raised capital only through institutions to reduce debt, but Webjet is offering a SPP to private shareholders and is making an acquisition that the market seems to approve of?


----------



## peter2 (8 July 2014)

> P.S. Bought some WEB this morning. Let's see if some of the enthusiasm brushes off.




Profitable comment by *skc* the day the takeover news for WTF was announced.

Nice one.


----------



## leyy (16 July 2014)

Some good value in WEB

Good up day today with no announcement on good volume.

No debt, decent dividend yield.


----------



## McLovin (17 July 2014)

leyy said:


> Some good value in WEB
> 
> Good up day today with no announcement on good volume.
> 
> No debt, decent dividend yield.




They're fighting a losing battle, IMO.

That dividend might be good now, but WEB has some pretty stiff competition.


----------



## skc (17 July 2014)

leyy said:


> Some good value in WEB
> 
> Good up day today with no announcement on good volume.
> 
> No debt, decent dividend yield.




There was an announcement the day before yesterday on acquisition of a hotel booking group in Europe. The next day quite a few brokers gave it the thumbs up, and hence the strong gain.



McLovin said:


> They're fighting a losing battle, IMO.
> 
> That dividend might be good now, but WEB has some pretty stiff competition.




Yes but in the short term I think WEB will move primarily due to the WTF glow. I remember a long time ago, there was rumour that WTF and WEB should merge....


----------



## clowboy (27 February 2015)

WEB has risen quite decently since the HY results, which seemed to be quite ordinary?

Did I miss something somewhere?


----------



## leyy (22 February 2016)

clowboy said:


> WEB has risen quite decently since the HY results, which seemed to be quite ordinary?
> 
> Did I miss something somewhere?




Some good results from WEB this week. tracking very nicely it is at an all time high with no resistance.

the recent acquisition of lots of hotels (LOH) is paying off and is seeing tremendous growth 89.6% increase in revenue YOY 1H.

good growth in B2B and B2C business over 20% in all businesses. More importantly margins have not decreased significantly despite competitive trading environment down 0.1% only.

increased dividend. good cash at bank circa $70M to fund potential acquisitions.

The current environment is quite positive for tourism and hospitality. I think most will benefit with the current macroeconomic market low Australian dollar, low oil prices, low interest rates.

Hoping to see some positive results with QAN, FLT.


cheers
leyy


----------



## leyy (8 June 2016)

The market really liked the announcement for WEB taking over the Online Republic business. This has taken WEB to an all time high at over $7.00!!

I think this is an excellent acquisition for WEB to further strengthen their OTA presence in the digital market. Especially in areas they do not have presence in (Car rentals, Cruise bookings, Motorhome bookings etc). There will be  synergies from both businesses in terms of distribution and cost savings and will certainly complement each other. 

I am very impressed with the CEO John Guscic (they both have substantial share holdings along with other directors so they have some stake in it).

I will be taking up my offer with an additional 100%.


----------



## piggybank (10 June 2016)

Thanks Leyy for the update on Webjet. Here is the link to a presentation FY15 Full Year Results carried out by the company's Managing Director John Guscic, at the Credit Suisse Travel Conference.

http://www.stocknessmonster.com/news-item?S=WEB&E=ASX&N=450516


----------



## leyy (15 August 2016)

hi all,

need your thoughts on WEB.

It has cracked $8.00 for the first time and is at an all-time high with strong uptrend, the chart looks good.

After the new shares from both retail and institutional have landed in the market the price held even with the profit takers. After some short-term consolidation it still shows lots of buyers support.


Webjet is due to report on Thursday 18th. I am holding two large parcels both personal and SMSF with over a 300% CG so far. It is too much weight in my portfolio for my liking but i cannot see any compelling reasons to sell the stock.

I am not overly concerned as i dont think they will shock the market with any disappointing news but again its a lot of risk.

Has anyone been following? and what are your thoughts? i have a trailing stop loss on WEB right now.

Has anyone been in a similar position with another stock? and what did you do?


Cheers
leyy


----------



## Triathlete (15 August 2016)

leyy said:


> hi all,
> 
> need your thoughts on WEB.
> 
> ...




Well done with your investment..!!
Having a look at the valuation by Stock doctor they have the stock at $5.45 and a consensus value of $6.89 so slightly over valued based on their valuation.

Having a trailing stop is a good idea this way it can take you out if you get an unlikely pullback.

Presently on a value perspective it is overvalued but I would just keep riding the trend and since you have a trailing stop that should take you out on the pullback provided it does not gap through your stop.


*Strategic Comment*

Last Updated: 7 June 2016

WEB is a Star Growth Stock  that suits growth investors looking for capital appreciation and who are prepared to pay a premium for a quality business . The company has a strong track record and we continue to believe that with strong organic growth the company will be able to meet our Star Growth Stock criteria into the future.

WEB is currently trading at a significant premium to its valuation on the back of a very strong run up in price. A current holding in the stock should be part of a well diversified portfolio should you be a growth focused investor. *Existing investors should potentially rebalance their exposure when they next make a portfolio decision*. The company's investment in the business to business space is set to bear fruit in the coming periods, giving further access to a high growth area. The business has announced that it intends to raises capital to finance an intended acquisition of Online Republic, a New Zealand based online business, for approximately A$79 million. 

Following further analysis of the capital raising and acquisition numbers of Star Growth Stock Webjet Limited's (WEB*) Online Republic acquisition, they have remained a Star Growth Stock. Of the total capital being raised ($72 million) the retail equity component falls in FY17 and this currently should see the company remain as a Star Growth Stock in the immediate period. This of course assumes there are no surprises in the FY16 result and they perform relatively in line with our expectations .


*Currently Lincoln indicators have a 14day free trial*....www.lincolnindicators.com.au


----------



## leyy (16 August 2016)

Triathlete said:


> Well done with your investment..!!
> Having a look at the valuation by Stock doctor they have the stock at $5.45 and a consensus value of $6.89 so slightly over valued based on their valuation.
> 
> Having a trailing stop is a good idea this way it can take you out if you get an unlikely pullback.
> ...





Appreciate the feedback and comments Triathelete.

I will monitor closely and i will look at increasing the trailing stop loss

cheers
leyy


----------



## leyy (18 August 2016)

An excellent result!

9.2% above guidance of $33.5M EBITDA

$36.6M EBITDA

Huge gap up 24% increase on open  

Glad i didn't sell.


----------



## peter2 (17 October 2018)

I'm continually amazed by the mentality of the market mob. Here's WEB, less than two months ago lauded for some great results (Aug 18), the mob bid the price higher with exuberance. Now after some panic selling in the US markets and the ASX the price of WEB is lower than before the good news announcement.


----------



## Knobby22 (17 October 2018)

But is it cheap or just fair value?


----------



## peter2 (17 October 2018)

Knobby22 said:


> But is it cheap or just fair value?




That's not the question I think about. Many others do and I'll wait for their opinions. 

The chart indicates to me that the probability of price going higher from here is greater than the probability of it falling. The potential reward is greater than the risk I'm prepared to accept if my timing is wrong. 

Retail traders won't move price in any direction. Price movement will be determined by institutional traders and these are mostly guided by institutional analysts who'll decide if the price is cheap or at fair value.


----------



## galumay (17 October 2018)

peter2 said:


> Price movement will be determined by institutional traders and these are mostly guided by institutional analysts who'll decide if the price is cheap or at fair value.




Institutional analysts usually have little idea of the fair value of a business! But, yep, they are often the price makers in the short term. Its the old wvoting/weighing machine again.


----------



## bigdog (31 December 2018)

Year High of $17.93 and year low of $9.30

Todays share price currently $11.08 or 38% below year high

Webjet was established in 1998 and has since become the leading online travel agency (OTA) in Australia and New Zealand. Its core webjet.com.au website enables customers to easily compare, combine and book domestic and international travel fares along with hotels, packages, car hire and cruises.

The model is relatively simple, customers purchase their travel needs through its website and Webjet collects fees for facilitating the booking. In 2018, just over $2 billion in fares and accommodation was booked on its customer-facing (B2C) website which translated to revenue of $177 million.


----------



## Miner (21 February 2019)

What a stellar performance . I wish HLO (once it gets rid of the controversy with Fed) would follow them.
Disclosure : holding both WEB and HLO.


----------



## bigdog (21 February 2019)

Motley reports
https://www.fool.com.au/2019/02/21/webjet-share-price-rockets-on-stellar-profit-growth/
*Webjet share price rockets on stellar profit growth*
James Mickleboro | February 21, 2019

In morning trade the *Webjet Limited* (ASX: WEB) share price has rocketed higher following the release of its half year results.

At the time of writing the online travel agent’s shares are up 19% to $13.50. At one point the company’s shares were 28% higher at $14.59.

* What happened in the first half? *
For the six months ended December 31, Webjet delivered a 29% increase in total transaction value (TTV) to $1.9 billion, a 33% lift in revenue to $175.3 million, and a 42% jump in EBITDA to $58 million.

Half year net profit after tax rose 59% to $31.8 million or 48% on a per share basis to 31.5 cents. The Webjet board declared an 8.5 cents per share fully franked interim dividend, which was up from 8 cents in the prior corresponding period.

* What were the drivers of the result? *
The key driver of this strong result was the company’s WebBeds segment. From its continuing operations booking growth increased 50%, TTV rose 65%, and EBITDA surged 136% higher to $30.1 million. Whilst some of this growth came from acquisitions, organic TTV growth was 21% and organic EBITDA growth was 24%.

Pleasingly, management believes “there are considerable global growth opportunities for WebBeds, particularly in the Asia-Pacific region.”

Supporting this growth were the Webjet OTA and Online Republic segments. Although TTV growth in both segments was reasonably subdued, they both contributed to the company’s EBITDA growth.

The Webjet OTA business posted a 7% increase in TTV, a 12% lift in revenue, and an 11% jump in EBITDA to $28.5 million. Whereas the Online Republic business saw its TTV decline 5%, revenue rise 8%, and EBITDA increase 14% to $6.9 million.

Webjet’s managing director, John Guscic, was deservedly pleased with the result.

He said: “This was another outstanding result for our business. Our WebBeds business continues to consolidate its position as the #2 global B2B player and is now delivering significant EBITDA growth.”

Before adding: “Following the acquisitions of JacTravel and more recently Destinations of the World, our increased global size and scale means we have been able to shift our focus from growing market share to pursuing more profitable growth. As a result, we saw increased TTV and EBITDA margins in all regions. The Webjet OTA continues to gain share despite a slowing domestic flights market and our strategy to focus on profitable bookings in Online Republic saw improved TTV and EBITDA margins.”

* Outlook. *
No changes were made to the company’s guidance. Management has reconfirmed its guidance and advised that it remains on track to deliver at least $120 million EBITDA (excluding one-offs associated with the acquisition of Destinations of the World).


----------



## leyy (26 February 2019)

A very happy holder of WEB. I have been in and out of this stock for many many years.

John Guscic is an outstanding CEO, he has amassed a nice little fortune of over $110M in shares plus another 3 million in LTI/options which could be worth over $50m (very well deserved).

The most exciting part of Webjet's business is actually it's B2B division WebBeds, there is huge upside for WebBeds which delivered the highest EBITDA in the group at $30.1M at a growth rate of 136% YOY.

They are only starting to scratch the surface as market leaders in EMEA and Europe, with huge growth prospects in Asia Pacific and The Americas. It is a very unique B2B model which will give the traditional leisure travel agents and corporate agents some real competition as they continue to grow, aggregate hotel contracts and become the leading suppliers of hotel rooms and gain market share in other key markets.


----------



## Miner (16 April 2019)

https://www.asx.com.au/asxpdf/20190416/pdf/444cfc8hwmxp32.pdf
https://www.asx.com.au/asxpdf/20190409/pdf/4445qqy0cd76xn.pdf
Both conference reports are pretty much-recycled stuff.
There are a couple of interesting points:
WEB is getting into Air BNB type business taking leverage of existing network and agents/employees - low overheads and low risks. I would welcome the whole heartily to an Australian company to be successful than AIR BNB to be successful. Yes, competitive.
Secondly, a totally new market segment by attracting pilgrimage travellers.
Wait and see.
Oh, yes- a happy investor


----------



## bigdog (24 July 2019)

Motley Fool reported today
https://www.fool.com.au/2019/07/24/why-megaport-ramelius-webjet-zip-co-shares-raced-higher-today/

The *Webjet Limited* (ASX: WEB) share price has charged 3% higher to $13.72. This morning the online travel agent was the subject of a broker note out of Ord Minnett. Although the broker has trimmed its price target on the company’s shares, this price target is still significantly higher than where its shares trade today. Ord Minnett has a buy rating and $19.32 price target on Webjet’s shares.


----------



## bigdog (22 August 2019)

ASX FY19 Full Year Results reporting today
















270


----------



## Miner (22 August 2019)

bigdog said:


> ASX FY19 Full Year Results reporting today
> 
> View attachment 96954
> 
> ...



WEB and FLT both reported outstanding results today.
HLO did earlier.
Question is between WEB and FLT Z Which one flies today by the market ?
Own both


----------



## bigdog (22 August 2019)

Miner, the market did not like today's report






Motley reported
https://www.fool.com.au/2019/08/22/why-webjets-b2b-bookings-business-is-going-gangbusters/

*Webjet share price slumps despite B2B bookings business going gangbusters*
Tom Richardson | August 22, 2019

This morning *Webjet Limited* (ASX: WEB) reported an adjusted net profit of $81.3 million on revenue of $366.4 million on total transaction value (TT) of $3.8 billion for the fiscal year ending June 30, 2019. The adjusted profit (backing out acquired amortisation costs), revenue and TTV are up 46%, 26%, and 27% respectively over the prior corresponding year.

In early trade, the Webjet share price has fallen 12.4% to $12.13.

Webjet will be familiar to Australian consumers as the eponymous travel and package holiday bookings website, but nowadays its consumer-facing operations make up less than half of group operating income.

Its crown jewel in terms of growth and its largest business by EBITDA (operating income) is its WebBeds business-to-business (B2B) bookings business that posted organic EBITDA growth of 30% to $78 million.

Moreover, margins are rising sharply as it pulls operating costs out of its acquired businesses and acquires greater revenue (better margin on) TTV or bookings sold.

Essentially, the WebBeds business is a digital middle man connecting hoteliers to tour groups, travel agencies, or block bookers of accomodation, which is still an incredibly popular method of travel globally despite many Australians preferring to travel independently.

In particular emerging travel markets in Asia and the Middle East still prefer to travel in groups, while many more ‘independent’ budget-focused travellers still prefer to have hotels booked for them if going overseas.

The WebBeds business now has operations across Europe, Asia, Latin America, the Middle East and Africa, with religious travel packages to Saudi Arabia now growing in popularity to provide an idea of the kind of service its block booking B2B business provides.

WebBeds aims to lift its margins to earn 8% in revenue from each booking (TTV), with 4% costs on TTV, to translate into 4% EBITDA on TTV for Webjet’s gross profit margin. In effect this would equal a 50% EBITDA margin by FY 2022, way above the 36.4% delivered today.

Take a look below at its FY 2022 target if you do the maths yourself on its 8/4/4 target you can see what it’s talking about.






For investors rising TTV and margins is an attractive prospect and the under appreciated growth of Webjet’s B2B business is one of the reasons I first bought into the stock around $3 in 2015.

The one fly in the ointment for now is that Webjet’s 2016 deal to acquire 3,000 direct contracts from Thomas Cook and outsource has turned sour as the UK’s largest package holiday business is under huge pressure. In 2019 its shares crashed 40% in a day as analysts claimed it could go bankrupt. Thankfully that looks unlikely for now, but Webjet reported sagging confidence in Thomas Cook will hurt this part of B2B EBITDA in FY 2020.ly

Webjet’s consumer-facing business under the Webjet.com.au URL in Australia had a relatively soft year with EBITDA up 4% to $60.8 million on the back of a 5 basis point growth in EBITDA margin.

After a tough FY 2019 for consumer spending, pleasing the group reported it has seen TTV for the 6 weeks to August 12 2019 up 9%.

Webjet has net debt of just $23.7 million including $211.4 million cash on hand and a return on equity of 15%.

It will pay a final dividend of 13.5 cents per share to take annual dividends to 22 cents per share on 61.8 cents on adjusted earnings per share.


----------



## Miner (22 August 2019)

Thanks @bigdog  for a very good analysis.
I did see market reaction and believed myself for a change  .
Doubled up my holding at $12. Previous purchase was at  $10  or so. I could be a stupid as always  to add  but will wait.


----------



## bigdog (4 October 2019)

The Webjet Limited (ASX: WEB) share price fell to a 52-week low of $10.03 on Thursday. This online travel agent’s shares have fallen heavily over the last couple of weeks due to the collapse of its UK partner Thomas Cook. This triggered a number of broker downgrades and sent many shareholders to the exits.






I Hold


----------



## ashainp (4 October 2019)

bigdog said:


> The Webjet Limited (ASX: WEB) share price fell to a 52-week low of $10.03 on Thursday. This online travel agent’s shares have fallen heavily over the last couple of weeks due to the collapse of its UK partner Thomas Cook. This triggered a number of broker downgrades and sent many shareholders to the exits.
> 
> View attachment 97787
> 
> ...



Same. I bought WEB purely on fundamentals to test Phil town's rule 1 despite being on a downtrend. Current prices are more than 30% discounted to it's intrinsic value based on fundamentals.
Let's see


----------



## bigdog (11 December 2019)

SP up 10% today

Asx Announcement
11/12/2019 8:24:35 AM  *RESPONSE TO MEDIA SPECULATION* early this morning

Webjet Limited (ASX: WEB) (Webjet) notes recent media speculation in relation to expressions of interest in the Company.

Should a proposal be received that was compelling and certain, the company would put it to shareholders. No such proposal exists at present.

It seems the speculation sparked earlier this week following a release from the Australian Financial Review.

The AFR stated the travel retailer was the subject of a pitch by Goldman Sachs' merger and acquisition team in Melbourne.






Webjet didn’t deny it receives interests from bidders from time to time, it stated that no compelling proposal exists at present

The have been subsequent rumours of a takeover bid sent the have sent their share price being higher this morning.







706


----------



## bigdog (31 January 2020)

ASX announcement 29/01/2020 10:30:59 AM  *Webjet seeks to clarify inaccuracies in analyst report
*
Webjet has published details of how it generates online bookings in a rebuttal of what it called "factual inaccuracies" in an analyst report that had warned investors the business was vulnerable to Google's approach to monetising travel listings.

Webjet shares were trading at $14.39 last Friday, but by Tuesday had dropped 14 per cent to $12.33 after a Morgan Stanley report cut its 12-month price target for the stock to $10 and raised concerns that the company could end up paying more to boost its position in search engine listings.

Share price currently $11.93
HY20 Results Presentation due 19/02/2020 *
*

*



*


----------



## qldfrog (1 February 2020)

bigdog said:


> ASX announcement 29/01/2020 10:30:59 AM  *Webjet seeks to clarify inaccuracies in analyst report
> *
> Webjet has published details of how it generates online bookings in a rebuttal of what it called "factual inaccuracies" in an analyst report that had warned investors the business was vulnerable to Google's approach to monetising travel listings.
> 
> ...



Clarification or not, they are going to take a beating with the virus crisis/scare...


----------



## Ferret (19 March 2020)

WEB in a trading halt prior to announcing a raising.
WEB will be the first of many...


----------



## MattySquareleg (3 April 2020)

Webjet makes a successful institutional raise and will now open up a large retail entitlement offer.  Shares were offered at $1.70.  Currently trading around $3.   

"The money raised includes $231 million coming from institutional investors via a placement of new shares and an entitlement offer, allowing them to purchase one Webjet share for every one already owned. Ninety per cent of institutional shareholders took up that offer, Webjet said.

An offer for retail investors is underwritten and is expected to raise $115 million."  -AFR

What are the thoughts on how this will affect prices over the next few weeks?


----------

