Webjet Boosts Annual Profit by 15 percent

Submitted by Jim Thesiger on 7 August, 2009 - 06:13

The online travel agent Webjet (WEB) has increased its annual profit by 15 percent and claimed that it is expecting to see another increase in the new year, travelers who are looking for cheap deals were considered to be the key power behind the recent serge in its profit. According to the a statement of the company, Webject’s net profit climbed to $7.7 million for the 12 months to June 30, from prior corresponding period’s $6.7 million excluding credit from the establishment of a deferred tax asset. The profit was $9.4 million for 2007/08, after including the deferred tax benefit of $2.5 million. The company saw its revenue hitting 20 percent to $30.1 million, while the total transaction value of the company gained 17 percent to $388 million.

David Clarke, the chief executive of the company claimed that due to a fall in demand, the probable drop in the unit value of travel, the possibility of consumers aggressively approaching for bargains, the probability of sites like Webjet acquiring market share, have proven to be true. He also admitted that he didn't expect the market conditions to get better until the next year.

This is why Webjet might consider boosting up its marketing expenditure to take advantage of lower advertising expenses especially in local areas. Webject freezed its base salary for the year 2009/10. The company is expected to launch new products in the market to go for wining further market share. Mr. Clarke also mentioned that based on the recent developments in the market and Webjet’s response to it, the company was poised strongly to post another profit increase for 2009/10. The company is supposed to pay its last per share dividend of 3.5 cents (which includes half a cent special dividend). The Webjet stocks enjoyed a 4.76 percent or 6 cent gain in the share market.

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