Webjet OTA profitable but TTV slammed by COVID-19.
Webjet has just released its results for the six months to 31 December 2020, with Total Transaction Value down 89% year-on-year to just $267 million for the period.
The company has reduced its monthly cash burn to $4.8 million and has $283 million in the bank, with lending waivers extended through until 31 March 2022.
“These results reflect the devastating impact COVID-19 continues to have on the global travel industry,” said MD John Guscic, noting that the opening of domestic borders had already seen the online travel agent operations return to profitability.
The WebBeds accommodation division is undertaking a major Transformation Strategy which aims to see it emerge as the number one global B2B player, with initiatives on track to deliver cost efficiencies of at least 20%.
The overall statutory loss for the period was $112 million, which included $74.3 million in non-cash items, the Webjet MD said.
“Webjet is focused on capitalising on travel recovery…domestic and leisure travel markets are expected to lead the travel industry recovery and the company’s global footprint and diverse customer base allows for demand to be captured when and where the borders reopen, while also leveraging the structural shift from offline to online,” Gucsic added.
He said the OTA business was focused on increasing its market share leadership “as domestic leisure markets reopen and physical stores decline”.
More details in today’s issue of Travel Daily.