half year results fy14 john guscic managing director 13 february 2014 0
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HALF YEAR RESULTS FY14John GuscicManaging Director
13 February 2014
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Half Year Results FY142
Highlights
• Revenue up 64% to $52.2m
• Increase in margins: TTV margin up 23% to 10.3%
− Improved operating terms
− Evolving business mix
• Reported EBITDA up 45% to $12.3m; 21.5% above Normalised FY13
• NPAT growth of 60% to $9.1m, 24% higher than Normalised FY13.
− Utilisation of Zuji carry forward tax losses, reduced the average tax rate to 20.1%
− Impact of lower interest rates (c.$238k impact)
− Absorbs impact of revised useful life for technology assets ($565k impact)
• Year of significant core infrastructure investment
− Webjet platform moved into the cloud
− Successful migration of Zuji onto Webjet Platform
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Half Year Results FY143
Result summary
3
1. Result adjusted for the impact of one-off costs: Start-up costs for Lots of Hotels business of $1.1m, Zuji acquisition costs of $0.5m.
Half Year Ended 31 December$m FY14 FY13 FY14 FY13 (1)
TTV 507 380 33.4% 507 380 33.4%
Revenue 52.2 31.8 63.9% 52.2 31.8 63.9%Costs 39.9 23.3 70.8% 39.9 21.7 76.1%
EBITDA 12.3 8.5 45.0% 12.3 10.1 21.5%
Depreciation and Amortisation (1.4) (0.6) 119.5% (1.4) (0.6) 120.9%Interest 0.4 0.6 (38.0%) 0.4 0.6 (38.0%)Associates 0.0 (0.1) (100.0%) 0.0 (0.1) (100.0%)
EBT 11.3 8.4 34.3% 11.3 10.1 12.4%
Tax Expense (2.3) (2.8) (18.5%) (2.3) (2.8) (18.5%)
NPAT 9.1 5.6 60.3% 9.1 7.3 24.2%EPS (cents)- Basic 11.6 8.0 44.3% 11.6 10.3 12.1%- Diluted 11.5 7.9 44.7% 11.5 10.2 12.4%Margins
Revenue Margin 10.3% 8.4% 10.3% 8.4%EBITDA Margin 23.6% 26.7% 23.6% 31.8%NPAT 17.4% 17.7% 17.4% 22.9%Effective Tax rate 20.1% 33.1% 20.1% 27.7%
Reported Normalised
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Half Year Results FY144
Accelerating growth in revenue margin
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7.1% 7.3% 7.4% 7.4% 7.5%8.6%
10.3%
FY08 FY09 FY10 FY11 FY12 FY13 H1 FY14
Revenue / TTV marginRevenue / TTV margin
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Half Year Results FY145
4.9
6.9 6.6
8.2
10.3
11.6
Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
Normalised EPS (cents)
Normalised EPS (cents) (1 )
Continued growth in EPS
5
1. Result adjusted for the impact of one-off costs: Start-up costs for Lots of Hotels business of $1.1m, Zuji acquisition costs of $0.5m.
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Half Year Results FY146
Dividends
6
2.0 3.0
5.0 5.0 6.0 6.0 6.25
3.0
3.5
5.5 6.0
7.0 7.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14
Category Interim Final
Cents paid – fully frankedCents paid – fully franked
• Interim dividend increased to 6.25 cents
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Half Year Results FY147
Strong balance sheet
7
• Zuji integrated and terms of trade aligned
• Debt free
• Cash includes $9.5m of client funds; [ $29m at 30 June 2013 ]
$m Dec-13 Jun-13 Change
Cash 45.4 66.8 (21.4)
Other current assets 18.6 22.0 (3.4)
Non-current assets 48.3 45.4 2.9
Total Assets 112.3 134.2 (21.9)
Liabilities 47.6 73.5 (25.9)
Equity 64.7 60.7 4.0
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Half Year Results FY1488
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Full Year Results 2012/13
AIR
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Half Year Results FY1410
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(1) Number 1 AIR OTA in AU/NZ as determined by Hitwise.
ZUJI - NO 1 OTA – AIR(2,3)
Singapore & Hong Kong
Australia & New Zealand
WEBJET- NO 1 OTA – AIR(1)
(2) SG: Aggregated internet metrics 2013
(3) HK: Aggregated internet metrics 2013
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Half Year Results FY1411
Air
• Delivered profitable growth through improved margins
• Enhanced targeted digital marketing to maximise ROI
• Grown share of visits H1 FY14
11
Source is Htiwise.com.au
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Half Year Results FY1412
Webjet leads brand awareness amongst OTA’s
12
Source: Hitwise upstream search terms .
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Full Year Results 2012/13
NON - AIR
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Half Year Results FY1414
Organic Packages Growth
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$21m Run Rate
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Half Year Results FY1415
Lots Of Hotels
• Lots of Hotels
−Online B2B hotels business
−Now in 18 markets across Middle East, North Africa, Southern Europe
−Plan to launch into 30 markets by December 2014
−Proven and experienced management team
−Currently on a $65m+ annualised TTV run rate
−Margin continues to improve
−Scale is the objective for 2014
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Full Year Results 2012/13
TECHNOLOGYINVESTING IN THE FUTURE OF TRAVEL
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Half Year Results FY1417
Growing from firm foundations
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Scale global platform capability
Expand content base
Expand content base
Extend reach
Extend reach
Leverage device
distribution
Leverage device
distribution
• Completed transition of ZUJI online presence to Webjet Cloud Services platform in all markets
• Increased payment options for customers through new payment platform
• Devised tools to provide more air content options across our flight markets
• Continued focus on our mobile strategies and solutions
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Half Year Results FY141818
“COWARDS DIE MANY TIMES BEFORE THEIR DEATHS THE VALIANT NEVER TASTE OF DEATH BUT ONCE”
- Shakespeare, Julius Caesar Act II
BOOKING FEES
AIRLINES
METASEARCH
GOOGLE FLIGHTS
AMERICAN OTA COMPETITORS
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Half Year Results FY141919
The myth of modern man – Part 1
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Half Year Results FY142020
The myth of modern man – Part 2
Booking.com DOES NOT sell air
Since 2011 Webjet has grown hotels:
From $2m annually to
$57m in first half of 2014
A run rate of $120 million a year, a 60 fold increase over just three years
Webjet sells hotels via:• B2C through Webjet & ZUJI sites
• Stand alone • Inflight path • Packages
• B2B through Lots Of Hotels
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Half Year Results FY142121
Webjet Exclusives
• New product offering
• Exceptional short term fixed price travel deal
• Seasoned travel executive Paul Ryan• Ex Flight Centre, Scoopon
• Launching in Q4 2014
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Half Year Results FY142222