The Webjet Limited (ASX: WEB) share price is down 3.3% to $11.13 today after the online travel agent revealed the financial hit it will take as a result of the collapse of UK travel giant Thomas Cook.
The bad news is that Webjet admitted it has €27 million of Thomas Cook receivables on its books that to be impaired as unpaid and taken as a one off profit hit on the income statement. Webjet claimed this loss was "non material" as it could be absorbed by its exiting cash balance around $211 million and any undrawn debt facilities.
It also conceded it would lose total transaction value (TTV) between $150 million to $200 million from Thomas Cook over FY 2020, with that expected to take $7 million in EBITDA out of the group result.
Originally it expected its high-performing WebBeds B2B bookings business to contribute another $27 million to $33 million EBITDA over FY 2020.
The good news is that for the first 10 weeks of FY 2020 WebBeds TTV is up more than 50% on the prior corresponding period when you exclude the Thomas Cook blow up.
The stock is only down 3% today, but down 33% since May 2019 once it became apparent that Thomas Cook was on its knees and may be forced to call in the receivers.
Other travel stocks to take a Brexit-slowdown related hit over the past 12 months include Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX: CTD).
