Webjet posts another record profit as it makes a massive push into wholesale travel

Photo: Jasper Juinen/Getty Images.

Webjet announced a record full year profit of $22.2 million, a 27% rise, as the online travel booking site starts to build its digital wholesale business.

Overall revenue from the website increased by 29% to $155.3 million.

EBITDA (earnings before interest, tax, depreciation and amortisation) was up 31.4% to $36.6 million, beating the company’s own guidance by more than $3 million.

Its traditional consumer division grew by 27% compared while the relatively new business to business (B2B) unit, selling packages wholesale to other retailers, jumped 37%.

Here’s how Webjet has grown:

Source: Webjet

Managing director John Guscic says Webjet has now reported 27 months of consecutive record top line revenue growth.

“Our planned growth strategy for the B2B division is delivering tangible results,” he says.

Webjet declared a final dividend of 8 cents a share, a 10.3% increase.

The company also announced a wholesale deal with Thomas Cook, a leading holiday company in Europe.

The agreement will see Sunhotels, Webjet’s European online accommodation business servicing the wholesale market, take responsibility for the majority of the volume of Thomas Cook’s hotel business.

This builds on the existing partnership that Sunhotels already has with Thomas Cook in its Nordic markets.

As part of the new deal, Thomas Cook will transfer around 3,000 hotel contracts from across the group to Sunhotels.

Under the terms of the agreement, Webjet will pay Thomas Cook £21 million ($A35 million).

Webjet in June bought New Zealand-based vehicle rental group Online Republic for $NZ85 million ($A80 million).

The move enables Webjet to expand its offering in car rental and enter the high growth motorhome rental market.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.