Knobby22
Mmmmmm 2nd breakfast
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But is it cheap or just fair value?
WEB - Web Travel Group
- Thread starter whooyeah
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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
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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
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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.
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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.
Disclosure : holding both WEB and HLO.
bigdog
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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).
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.
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.
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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
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
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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.
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
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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
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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.
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.
Attachments
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bigdog
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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
I Hold
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
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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
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
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bigdog
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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
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
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Clarification or not, they are going to take a beating with the virus crisis/scare...
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WEB in a trading halt prior to announcing a raising.
WEB will be the first of many...
WEB will be the first of many...
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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?
"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?
