Online travel service provider, Webjet (WEB) today updated its profit guidance for fiscal 2008 saying that trading results for the first quarter are materially better than previously foreseen.
"The first four months of the financial year currently indicate a profit before tax result which, if continued to 30 June 2008, would suggest a result in the range of 10-15% better than current guidance numbers," managing director David Clarke said.
In a statement to the stock exchange, the company said:
"Whilst it is clearly too early in the year to reach a forecast position, we are extremely pleased with the indicators for the first half which suggest a percentage improvement of between 60% and 70% which would produce a profit before tax of between $3.3m to $3.6 million compared with $2.1 million last year for the six months to December."
In August, Webjet said on the basis of half year trends in 06/07, turnover in 07/08 may increase by approximately 32%.
While it said it is sensitive to petrol prices, travel prices and consumer confidence, interest rates and mortgage repayment impact, these factors do not appear to be impacting its business at all this year.
More than likely, the strength of the Australian dollar is leading to an increase in overseas travel, benefiting companies like Webjet.
In October, Webjet launched a takeover bid for travel.com.au.
However, this was superseded by a superior offer from rival online travel agent Wotif.
Webjet rose 2.8% or 5 cents to $1.80.
