Webjet to sell Zuji for $56m

Online travel group Webjet says it will make a gain of $26m on the sale of its Asia-focused Zuji business.

Webjet's CEO John Guscic.

Shares in Webjet have soared after the online travel group announced it was selling its Asia-focused bookings business Zuji and raised its full year earnings guidance.

Webjet shares gained 43 cents, or 4.6 per cent, to $9.75 in a significantly weaker market on the news the company will sell its Hong Kong and Singapore- focused Zuji business to subsidiaries of HK travel technology group Uriel Aviation for $56 million.

Webjet (WEB) will make a gain of $26 million on the sale of the business it acquired in March 2013.

The company has accordingly raised its fiscal 2017 earnings guidance to $78 million, including one-off charges of $8 million.

Earnings from continuing business is now forecast to be $60m. Webjet’s earnings before interest, tax, depreciation and amortisation in fiscal 2016 were $36.6m.

The company’s booking growth is continuing to outperform the market in both the business-to-consumer and business-to-business segments, managing director John Guscic said.

AAP