Webjet Reports 1% Revenue Dip, 16% Profit Rise, and $9.1M ACCC Penalty
Webjet Group reported a slight revenue dip and a mixed earnings performance for the half-year ended September 2025, while unveiling its inaugural dividend and receiving a non-binding takeover offer from Helloworld Travel.
- Total revenue down 1% to $67.9 million
- Underlying EBITDA declined 9% to $14.4 million
- Underlying net profit after tax rose 16% to $7.8 million
- Declared inaugural fully franked interim dividend of 2.0 cents per share
- Acquisition of Locomote Holdings and non-binding offer from Helloworld Travel
Financial Performance Amid Challenging Conditions
Webjet Group Limited (ASX, WJL) has released its preliminary half-year results for the period ending 30 September 2025, revealing a resilient profit performance despite a challenging travel market. Total revenue from ordinary activities edged down by 1% to $67.9 million, reflecting subdued domestic leisure travel demand and the lingering impact of macroeconomic pressures such as elevated airfares and geopolitical tensions.
Underlying EBITDA, a key measure of operational profitability excluding non-recurring items, declined by 9% to $14.4 million. However, underlying net profit after tax (NPAT) rose by a notable 16% to $7.8 million, boosted by improved net interest income and disciplined cost management. The company’s statutory net profit after tax also increased by 51% to $6.2 million, underscoring the strength of its core operations.
Strategic Investments and Regulatory Resolution
During the half, Webjet Group continued to invest in its FY30 Strategic Plan, focusing on expanding international flight market share, enhancing hotel and package offerings, and developing its business travel segment through the acquisition of Locomote Holdings Pty Ltd. The acquisition, valued at approximately $23 million, is expected to accelerate Webjet’s business travel capabilities and was completed on 1 October 2025.
The company also resolved a significant regulatory matter with the Australian Competition and Consumer Commission (ACCC), agreeing to pay a $9.1 million penalty related to historical disclosure issues. This resolution included publishing a corrective notice and implementing a compliance program, which temporarily impacted website traffic and marketing activities but is viewed as a necessary step to strengthen consumer trust and regulatory compliance.
Capital Management and Shareholder Returns
Reflecting confidence in its financial position, Webjet declared its inaugural fully franked interim dividend of 2.0 cents per share, representing a 100% payout of underlying NPAT and exceeding its stated target payout ratio of 40–60%. The company holds a robust balance sheet with net unrestricted cash of $111.9 million and no borrowings, providing flexibility to fund growth initiatives.
Meanwhile, the company has received a non-binding indicative offer from Helloworld Travel Limited to acquire the remaining shares it does not own at an all-cash price of A$0.90 per share. The Webjet Board has granted due diligence access but cautions that there is no certainty the proposal will lead to a binding offer or transaction.
Outlook and Market Positioning
Looking ahead, Webjet Group adopts a cautious stance for the remainder of FY26, anticipating continued subdued domestic leisure travel demand amid persistent macroeconomic headwinds and elevated airfares. The company forecasts underlying EBITDA for FY26 to decline by 9–14% compared to the prior year, reflecting moderated investment in growth initiatives and a delayed brand relaunch.
Nonetheless, Webjet remains committed to its long-term strategic objectives, including doubling total transaction value by FY30 and leveraging its technology and AI capabilities to enhance customer experience and operational efficiency. The company’s recent industry accolades affirm its position as a leading online travel agency in Australasia.
Bottom Line?
Webjet’s half-year results highlight resilience and strategic focus, but the market awaits clarity on the Helloworld offer and the full impact of its growth investments.
Questions in the middle?
- Will Helloworld Travel’s indicative offer lead to a formal takeover bid?
- How will the Locomote acquisition affect Webjet’s profitability and integration costs in 2H26 and beyond?
- What is the anticipated timeline and impact of the Webjet OTA brand relaunch on customer acquisition and revenue?
