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Date : 31/08/2021

Webjet Share Price Up On ASX Following New Business Announcement

Webjet Limited (ASX: WEB) is engaged in the provision of online travel bookings. The Company is in the digital travel business providing services in regional consumer markets, as well as global wholesale markets via the online channel. It operates through the segments, including Business to Consumer Travel (B2C Travel) and Business to Business Travel (B2B Travel). The Company’s B2C division consists of Webjet and Online Republic brands. Webjet is Australia and New Zealand’s online travel agency. The Online Republic specializes in bookings of cars, cruises, and motorhomes. Its B2B division consists of JacTravel, Sunhotels, Lots of Hotels, FIT Ruums and Totalstay. JacTravel is the B2B supplier of hotel accommodation, offering application program interface (API) connectivity and a travel agent Website. Sunhotels platform provides global accommodation along with a range of ancillary products such as transfers and excursions.

Therefore, it is no surprise that Webjet has been affected by the impacts of the pandemic. The travel sector is arguably the most impacted and as a result WEB shares have experienced large degrees of volatility.

Why is the Webjet Share on Watchlist Today?

Today, Webjet announced a trading update and WEB share price soared on the ASX. Webjet announced that the Company will be cash flow positive for 1H22 (excluding investing and debt repayments) and that the WebBeds B2B business has been profitable since July 2021.

John Guscic, Webjet’s Managing Director said: “Our post-Covid strategy is delivering results and the Company will be operating cash flow positive for the first half of Financial Year 2022. The WebBeds business was profitable in July and August and is well on track to be profitable in September. We have seen strong demand as travel restrictions ease in North America and Europe, suggesting significant upside as more international markets reopen.”

“Webjet OTA was profitable for April to July but has been subsequently impacted by the current lockdowns in Australia and New Zealand. Online Republic was profitable in April and May, but like the Webjet OTA, has been impacted by lockdowns. However, we are confident that both businesses will return to profitability as soon as the domestic Australian and New Zealand markets reopen.”

Webjet will be reporting their H1FY22 earnings on the 25th of November and on the back of a trading update released by Webjet, WEB shares surged and ended the day in the green. WEB share price closed at $5.69 a share, gaining 3.45% today.

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