$56 million deal represents a significant profit for Webjet.
Webjet has just announced the sale of its Zuji businesses in Hong Kong and Singapore to subsidiaries of Hong Kong-based travel technology group Uriel Aviation Holding Limited.
The company will receive a total of $56 million, representing a $26 million gain on its $30 million purchase price in March 2013.
Webjet ceo John Gucsic said since the acquisition the company had taken out more than $5 million in annual costs and turned the businesses into “profitable operations in a competitive market.
“We remain committed to expanding our presence in Asia through B2B hotels and are delighted to announce that we will be launching FIT Ruums later this month. FIT Ruums is a new start-up which extends our B2B division across key Asian markets,” Gucsic said.
The company also announced EBITDA guidance for the 2017 financial year of $78 million, including $60 million for its ongoing businesses and the $26 million gain on the sale of Zuji. The result will be impacted by a one-off $5 million cost associated with an “accounting policy change due to a shift in supplier contracting arrangements for Webjet Exclusives” and a $3 million investment in the establishment of FIT Ruums.
More details in today’s issue of Travel Daily.