WebBeds TTV hits $2b

WEBJET’S business-to-business division WebBeds has boosted its annual TTV to more than $2 billion on a pro-forma basis thanks to the group’s acquisition of Dubai-based Destinations of the World (DOTW) earlier this month (TD 05 Nov).

At the group’s Annual General Meeting today, Managing Director John Guscic outlined further details of the $240 million purchase, which is expected to be completed tomorrow.

He said the acquisition will significantly enhance WebBeds’ business in the Americas and Asia-Pacific, while also expanding the company’s presence in Europe, the Middle East & Africa.

Having already integrated JacTravel after its purchase last year (TD 03 Aug 2017), Guscic said the addition of DOTW added a further $734 million to WebBeds’ TTV on a FY18 proforma basis, on top of the $1.35 billion of existing TTV.

Webjet Chairman Roger Sharp said the B2B division had already become the world’s number two hotels business.

“Clearly, we are building a powerhouse global B2B business, which after the acquisition of DOTW will account for more than 50% of group TTV,” Sharp said.

“After the acquisition of DOTW we will have more than 2,000 employees around the world.”

In a trading update, Webjet said it expected DOTW to contribute incremental earnings (EBITDA) of at least $10 million this financial year, reflecting the timing of the northern summer holiday period and weighting of bookings to the first half, with pro-forma EBITDA of $23 million.

Total expected EBITDA for the existing Webjet business and the seven-month contribution from DOTW was calculated at $120 million, pre-synergies.