Webjet has tested positive for cashflow thanks to a new and improved post-COVID strategy.
Background: Webjet is the Aussie travel platform where you can book from different airlines all in the one spot. It's got a market cap of a huge $2 billion, but with COVID obliterating the entire travel industry, Webjet took a pretty big hit.
What happened: For the 2020 financial year, Webjet posted a $143 million. And for the nine months to March 2021, they lost a further $156 million. All in all, Webjet copped a bigger beating than Scott Disick's ego after seeing Kourtney and Travis Barker together.
What else: Now, Webjet reckons it will be cashflow positive in 2022, thanks to its new post-COVID strategy which involves its WebBeds biz. FYI, WebBeds is like the middle-man between hotels and travel agents, and it's been hugely profitable for the company. And, it'll only get better once Australia begins opening up borders.
A company makes money from their products or services (cash coming in) and loses money on expenses (cash going out). This is called cashflow.
Being cashflow positive means a company's cash on hand is increasing, which means it has more flexibility to do things like cover expenses, reinvest into the biz and return money to shareholders.
Positive cashflow is a good sign that a company has some seriously strong financial management. And, it shows the company has long-term viability. And after a shocker year for Webjet, shareholders could use some good news.
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