The Webjet Limited (ASX: WEB) share price is up 2.3% to $11.80 today after the online travel booking company released a stunning half-year result after the market closed yesterday.
Key highlights from its continuing operations include:
- Total transaction value (TTV) up 35.1% to $900 million.
- Revenue up 48% to $92 million.
- EBITDA up 68.4% to $30.6 million.
- NPAT up 86.9% to $20 million.
- Earnings per share up 56% to 20.6 cents.
- Interim dividend up 15% to 7.5 cents.
Today's result means Webjet has now reported an impressive 33 consecutive months of record TTV.
Driving the strong result was its Business-to-Consumer (B2C) segment which posted a 38.8% increase in TTV to $666 million and a 52.6% jump in revenue to $68.4 million.
Pleasingly bookings growth in the segment continued to outperform the market by more than five times.
Webjet's Business-to-Business (B2B) segment also performed strongly, delivering a 25.4% increase in TTV to $235 million and revenue growth of 25.4% to $23.6 million.
Its Sunhotels business was a particular segment highlight. The Sunhotels-Thomas Cook alliance helped the business post a 33% jump in TTV.
Following the fantastic first half and a strong start to the second half, management has increased its full-year EBITDA guidance for continuing businesses to $61.1 million. Previous guidance for FY 2017 was set at $57 million.
Should you invest?
I believe today's result demonstrates why Webjet is one of the best growth shares on the ASX.
Although at 33x trailing earnings its shares are far more expensive than rival Flight Centre Travel Group Ltd (ASX: FLT), I feel the company's strong growth potential more than justifies the premium.
Because of this I would class this fast-growing travel bookings company as a great buy and hold investment today.
