#Webjet had a monthly cash burn rate of $15 million for the June quarter and “nominal” revenue in April/May yet says it sees opportunity in adversity and is open to buying other companies despite the global travel slowdown almost certain to extend well into 2021. Optimistic.
MD John Guscic said the business is raising a further EUR100m – some of which may be used for acquisitions – while revealing its online travel business generated “nominal” revenue in April and June.
“We continue to believe the strength of Webjet’s capital position in the current uncertain environment will provide a strategic advantage longer-term, enabling the company to execute its strategy and take advantage of opportunities as they arise,” Guscic said.
“As expected TTV and total revenue in April and May were nominal.
“While the company has started to see some booking activity in its Australian OTA and WebBeds business, the Company anticipates that any revenue contraction in the near term will be modest only until the situation improves and broad-based travel activity resumes.”
Webjet said the the money, which is being raised via convertible notes at annual yield of 2.5%, will be used to pay down $50m debt, extend current debt maturity to 2022, “as well as for potential acquisitions and ongoing capital management”.
Webjet raised $346m in April and had $215m cash at 31 May.
Meanwhile Flight Centre has secured access to GBP65m via the Bank of England’s COVID financing facility.