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Webjet soars on Zuji sale, new guidance

AAP logoAAP 8/11/2016

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 will make a gain of $26 million on the sale of the business it acquired in March 2013. The company has accordingly raised its earnings guidance to $78 million for the current financial year, including one-off charges of $8 million.

Earnings from continuing business is now forecast to be $60 million.

Webjet's earnings before interest, tax, depreciation and amortisation in 2015/16 were $36.6 million.

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.

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