Azzet reports on two ASX large caps with notable trading updates today.
Webjet soars on major bookings jump
Previously hailed as a post-covid ASX darling, Webjet Travel Group (ASX: WEB) – which subsequently slumped following the spinout of its hotel aggregator Webjet Group (ASX: WJL) last September – appears to be finally emerging from its demerger funk.
The stock’s share price was up around 15% at the open after the reporting a 20% jump in bookings, while total transaction volumes (TTV) of $4.9 billion were up 22% in the full year to March.
The market appears to have responded favourably to reassurances that Web Travel Group – which houses the WebBeds business - has finally recalibrated after last year's spinoff and is now back on track.
The group’s CEO John Guscic told the market today that bookings were up 29% in the eight weeks to Monday.
TTV growth included year to date include:
- Up 36% in the Americas.
- Up 22% in Asia Pacific.
- Up 25% in Europe.
- Up 32% in the Middle East and Africa.
However, the market appeared to have been willing to accept a 22% drop in net profit to $79.2 million due to higher corporate costs and tighter sales margins.
Given that the group’s strong results defied recent downgrades by its travel peers – Flight Centre (ASX: FLT) and Corporate Travel Management (ASX: CTM) - brokers suspect earnings upgrades for FY26 are on the cards.
Meanwhile, cash reserves fell from $529.7 million to $363.6 million as the group maintained capital management initiatives to offset any dilution from convertible notes due in April 2026.
Commenting on today’s update Guscic said:
“At almost $5 billion, TTV is nearly double what it was before the pandemic, with our key growth markets of Asia-Pacific and the Americas now accounting for 53% of TTV, up from 31% pre pandemic…” he said.
“WebBeds' TTV growth rate is the highest of the global travel companies and at 42%, EBITDA margins remain world class.”
Guscic expects TTV margins to be at least 6.5% for the medium term.
The company is target record earnings in FY26 and remains committed to delivering $10 billion TTV in FY30 at circa 50% earnings margins.
Webjet Travel Group’s market cap is $1.8 billion making it the ASX’s 217th largest stock; the share price is down 31% over one year and up 25% over the last month.
Up until today, the stock shares have been in a long-term bearish trend confirmed by a falling 200-day moving average.
Consensus is Moderate Buy.
Woodside jumps on NWS green light
Shares in Woodside Energy (ASX: WDS) were up around 5% in afternoon trading following revelations that the Albanese government has approved a bid by the oil and gas giant to extend the life of its North West Shelf gas facility until 2070.
This afternoon, Environment Minister Murray Watt told the market that the government plans to grant Woodside a conditional approval, subject to strict environmental conditions.
Woodside has 10 days to accept the conditions, which puts paid to a 7-year hiatus in federal environmental approvals.
"Following the consideration of rigorous scientific and other advice including submissions from a wide cross-section of the community, I have today made a proposed decision to approve this development, subject to strict conditions, particularly relating to the impact of air emissions levels from the operation of an expanded on-shore Karratha gas plant," Watt said.
Watt's first major approval as environment minister has been welcomed by the Coalition but it has been fiercely opposed by the Greens.
While WA draws 14% of its domestic power supply from the Woodside network of offshore oil and gas facilities and Karratha processing plants, climate groups expect the extension to add an additional decade's worth of emissions if fully utilised.
Interestingly, the Act that governs environmental approvals does not include provisions to consider the climate change impact of a project - and as such, projects cannot be approved or rejected on that basis.
Woodside has a market cap of $42 billion; its share price is down 20% in one year and up 10% in the last month.
Prior to today’s decision, the stock’s shares appear to have been weak with little demand from investors.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
