Market Guidance - Quarter Ended 31 March 2006 - Increases Net Profit Margin

Webjet today announced:

(six months to 31 December 2005 – 2.0%)

Commenting Webjet Managing Director, David Clarke, said:  

“The quarter has produced what we consider to be an exceptional result with net profit margin increasing to 2.2% for the quarter and has demonstrated that Webjet has the profit generating capacity to produce good short term profits, but critically is also able to substantially invest in brand position in the market and drive increasing transaction values and market share in an environment where that investment is likely to prove an essential prerequisite for longer term sustained growth. The following graph shows clearly the extent of that capacity and strategy which we intend to continue over the next year.

We also note that our cash generation has accelerated to the extent that funds on hand as at 31 March 2006 total $7.3 million which provides us with ample capacity to maintain appropriate prudential reserves after ongoing and tightly controlled capex of $124,000 for the nine months.

We respectfully remind the market that in common with our half year filing to 31 December, full year accounts will adjust under AIFRS for tax affect accounting although Webjet does not yet physically pay tax(1).