SERVICE fees now comprise 66% of Webjet’s revenue, while commissions earned by the online retailer have slumped dramatically in the six months to December 31.
According to Webjet’s half-year report, service fees generated $4.8 million revenue compared with $2.2 million for the same period in 2005.
Commission revenue was down 30% from $2.3 million to $1.6 million. At this rate interest income (which increased 670% to $773,000) on the $25 million Webjet has in the bank will overtake commission revenue sooner rather than later.
The company recorded an after tax profit of $1.489 million on revenue of $7.357 million, against $991,000 from $4.68 million in the previous comparable timeframe.
Its marketing expenditure rose to $2.6 million from $974,000, while other costs remained steady.
Copyright TRAVELtech Asia Pacific
30 January, 2007