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Webjet 1H profit grows 2%

Webjet 1H profit grows 2%

Online travel booking service operator Webjet (ASX:WEB) has revealed its adjusted profit grew 2% in the first half, as trading volumes increased.

The company reported profit of $5.3 million for the period, from 17% higher revenue of $21.6 million.

Minus $250,000 in due diligence costs related to an abandoned European acquisition, profit was $5 million.

Gross profit margins were flat at 7.2%, while ebitda fell 3% to $6.6 million.

The company has declared an interim dividend of 5 cents per share for its investors, to be paid out on April 14.

The company said it is commencing marketing of services for its Hong Kong and Singapore operations, and plans to enter into various European markets via a joint venture agreement over the next six months.

Webjet managing director David Clarke said he was pleased the company was able to meet its profit targets while still absorbing significant development costs.

But he warned that Australian market was currently being impacted by uncertainties - including the recent wave of natural disasters - that were dampening consumer confidence.

As such, Webjet said its “best estimate” is that it will maintain 2H10 profit levels in FY11, but that it did not believe it was possible to give definitive guidance at this time.

WFM shares fell 9.5% on Wednesday to close at $2.190, as the market reacted to this caution.

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Tags Webjettravelconsumer confidencefinancial resultsASX:WEB

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