REPORTING SEASON: Webjet Limited (WEB)
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Figure 1: Webjet Limited 12 month chart
Online travel agency Webjet Limited (WEB) has reported a 52.4% drop in FY13 profit to $6.5M, due to a flat domestic travel market and the cost of acquisitions.
Stripping out those costs, normalised profit rose almost 6% to $14M.
The one-off costs included the purchase of Zuji travel operations in Australia, Hong Kong and Singapore; along with the launch of the Dubai-based Lots of Hotels business.
WEB bought Zuji in December last year, with the business losing money in the three months to June.
However the company said so far in FY14 Zuji is profitable.
WEB has declined to give earnings guidance until its annual meeting on November 13.
Shareholders will receive a final fully franked dividend of 7cps to be paid on the 17th October.
It brings the total dividend payments to 13cps, unchanged from FY12. WEB shares rose in early trade on Wednesday before dropping into the red.
WEB shares are down 6% so far in calendar 2013 after rising almost 76% in 2012.