Online travel agency Webjet is gearing up to release a number of “substantial marketing, product and unique customer servicing initiatives designed to further accelerate and extend its market footprint in both Australia and overseas”. This was shared as t

Published: 23 Jul 2006

Online travel agency Webjet is gearing up to release a number of “substantial marketing, product and unique customer servicing initiatives designed to further accelerate and extend its market footprint in both Australia and overseas”. This was shared as t

Webjet managing director David Clarke said the profit would reflects an increase of 330 percent on last year’s Australian-equivalent international financial reporting standards (AIFRS) adjusted profit of $700,000.

“It demonstrates the economic success of Webjet’s increasing market footprint, which has been progressively reported to the market in our total transaction values over the last four quarters, which have in turn, increased 122 percent relative to the same period last year,” Clarke said.

“The results also demonstrate the potential leverage of Webjet’s low cost base, tightly controlled marketing expenditure and deliberately focused business plan,” Clarke added.

The company said it had cash reserves of $23.1 million as at June 30, and that its debt free balance sheet, along with cash flow generation from trading activities would give it “significant flexibility”. The company said its board would consider appropriate capital management activities and potential strategic opportunities that might arise over the next 12 months.

As per the information available, the company reported an annual net profit of $1.44 million in 2004/05, after struggling to carve out a successful business model since listing in 2000. Webjet staged the turnaround through the addition of special features on its website, such as the ability to search for the cheapest flights across Australia.