The company’s FY21 revenues took a big hit from pandemic travel restrictions.
The post How has the Webjet (ASX:WEB) share price performed since reporting FY21 results? appeared first on The Motley Fool Australia. –
The Webjet Limited (ASX: WEB) share price is tumbling, down 2.5% in late afternoon trade to $5.77 per share.
It’s not just Webjet’s share price in retreat though. The S&P/ASX 200 Index (ASX: XJO) is down 2.3% at this same time.
With 4 months now having come and gone since Webjet reported its full 2021 financial year results (FY21), we take a look at how the travel agency has been faring since reporting.
Along with a brief recap of its results…
What FY21 results did the ASX 200 travel share report?
The Webjet share price was in sharp focus on 19 May, the day the company reported its FY21 results before market open.
Among the core results, Webjet saw its revenues plunge, falling from $266.1 million in FY20 to $38.5 million in FY21.
The travel company’s underlying losses more than doubled year-on-year, to an $88.8 million loss, compared to an underlying loss of $42.3 million the previous financial year.
On the positive end of the ledger, Webjet’s balance sheet was strong, with $431 million pro forma cash on hand.
Webjet did not pay an interim or final dividend in FY21.
Commenting on the pandemic stymied results and the company’s ability to bounce back quickly when travel resumes, Webjet’s managing director, John Guscic said:
We know there is strong demand for travel – we’ve seen that with the performance of Webjet OTA, with Australian domestic bookings reaching 95% of pre- Covid bookings in April. Webjet OTA has always had a key strength in servicing the domestic leisure market and our ability to scale costs in line with demand meant it was profitable as soon as borders opened.
How has the Webjet share price performed since reporting results?
The Webjet share price gained 0.6% on 19 May, following the release of its FY21 results. Since then, Webjet shares are up 24%.
By comparison the ASX 200 is up 3% over that same period.
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To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.