Webjet outperforms travel sector in Q1

Webjet outperforms travel sector in Q1

Travel website operator Webjet (ASX:WEB) has revealed it grew its total transaction values (TTV) by 25% in the first quarter to $188 million.

Managing director John Guscic said he believes the company outperformed overall growth in the travel market, which he pegged at less than 10%.

The gain is also significantly higher than the 17% TTV growth recorded in FY11. When these results were announced in August, the company forecast an increase in TTV of at least 10% for the whole of FY12.

The result was achieved despite the suspension of low-cost airline Tiger Airways in the first six weeks of the quarter due to safety concerns. This lends credence to Webjet's forecast from July that it does not expect the Tiger suspension to materially impact FY12 earnings.

Tiger itself estimates it swung to a large loss for the quarter as a result of the suspension. Webjet first reached a deal to begin offering bookings on Tiger flights in early 2009.

As well as the TTV gains, Webjet reported a 5% increase in FY11 profit to $11 million, and 18% higher total revenue of $45.7 million.

WEB shares traded as high as $2.050 on Thursday on the strength of the news, before closing 4.66% higher at $2.020.

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Tags travelTiger AirwaysWebjetonline salesGuidanceASX:WEBJohn Guscic

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