Webjet Lifts Profit By One-Third But Says The Domestic Australian Travel Business Is Flat

A stunt plane. Bryn Lennon/Getty Images

Webjet has delivered a record full year profit of $19.1 million, up an adjusted 33% or up 195% on unadjusted numbers, despite a flat travel market in Australia.

The online travel group was helped by the Zuji business, concentrated in Hong Kong and Singapore, which delivered around $2 million in earnings.

And the Lots of Hotels business continued to grow, reporting $0.5 million earnings.

The two businesses pushed revenues up 31.9% to $98.6 million.

John Guscic, Webjet managing director, said the result was driven largely by the turnaround performance of the Zuji business, which in turn was due to the successful extraction of various cost synergies identified at the time of acquisition.

“The core Webjet business experienced an essentially flat result, in line with the general domestic travel market.

“Our ongoing focus on pursuing higher margin business streams continued to grow our non-air revenues, with the packages business in particular showing good traction.”

Webjet used tax losses from Zuji and other overseas tax losses to reduced its effective tax rate to 9.3%. It now expects its tax rate to be 20% to 25%.

The company announced a fully franked final dividend of 7.25 cents, bringing the total dividend to 13.5 cents, an increase of 0.5 cents.

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