Good morning, and welcome to Webjet Limited Financial Year 2021 Full Year Results Briefing conference call. Today we are joined by John Guscic. I'll now hand over the call to him. Thank you operator. Good afternoon everyone. Welcome to the Webjet FY 2021 results. The first that reflects our March 31st year-end. Joining me on the call today, I have our CFO, Tony Ristevski. Whilst we wait for markets to open, we've not stood still. We've taken the opportunity to transform our business to be ready for the recovery. We've looked at ways to be more agile, lean, and efficient across the entire business, from service and quality to operating and marketing, to capital strength and management restructuring. We've created a global platform that will reduce costs at scale by at least 20% and provide the structural support to focus on those markets that we will rebuild fastest, where competitors are weakest, and we can target the number one position. We see a world of opportunity. We know people cannot wait to travel, to reunite with families and loved ones, to embark on adventures, and to explore the world. Webjet has significant cash reserves. We have a team that's always been agile and hungry to win, and we are ready to go. Business is powered for recovery, and we're already seeing that in the results in FY 2021. In every market that's opened up and has had material volumes, and I'm talking about the domestic flights market in Australia, the WebBeds North American market, we have increased our market share by at least 50% compared to pre-COVID levels. We saw in FY 2021 the key highlight is the Webjet OTA return to profitability, and that's been driven by domestic leisure markets reopening, and we have continued to take significant share. On the WebBeds side, we've seen improved booking performance over the last few months, but many regions are still being impacted by lockdowns and travel restrictions. The transformation initiatives that we will cover later on in the presentation enable us to refocus our business in maintaining and extending our cost efficiency lead and improving ourselves when we get to scale. We started that business in 2013. We targeted 853, 8% revenue TTV margin, 5% cost, 3% EBITDA. We then shifted two years ago to 844. Our new target is 835, and we'll talk about how we're going to get there a little bit later on in the presentation. A strong capital position has us with pro forma cash of AUD 431 million. Our FY 2021 average cash burn was AUD 5.5 million a month, and all our debt has moved out. All the maturity of our long-term debt has moved out from November 2022 to November 2023. We are ready to capture demand when travel returns. Our global footprint remains intact. Our customer base is diverse and large. We have significant exposures to domestic leisure markets. Where domestic leisure markets do now open up, we're able to tap in with the new contracted hotel rates that we have for that business. We have improved efficiencies across all businesses, which you'll see a reflection of our revised cost base for all of our businesses. As markets reopen, we are starting to see bookings come through in all businesses. Moving on to slide four. TTV and bookings growth are occurring as markets reopen. The standout performer for our business in FY 2021 was the Webjet OTA business, where we're seeing consistent growth over the course of the full financial year, over the nine months. As we roll into April of the start of the new financial year, we're seeing that we are delivering 95% of pre-COVID flight bookings for the corresponding April period of 2019. Online Republic has improved its performance during the course of the final quarter, and that continues to step up in April. We actually made money in the month of April. It's the first time Online Republic has made money since the pandemic, and we are through the combination of a better product mix for domestic markets, lower cost base, and revitalized management. We're continuing optimistic about the outcomes probable for the Online Republic business. The WebBeds business has been the most impacted by ongoing travel restrictions in many regions. As markets open up, we are seeing bookings pick up. The best example is North America, which is now traveling at 83% of April 2019 numbers. To put that into context, the overall flight market in North America is at less than 60% of its 2019 capacity. If you reflect on our historic WebBeds business, it's been an international outbound business in a market like North America, in which international outbound has been severely curtailed over the course of the last 12 months. That reflection of our market share is a pick-up of our domestic-led strategy in that particular market. We go to our financial summary. Tony will go through this in more detail. The difficulty obviously is it's the first of our new financial year. It's a nine month financial year that we've just completed. The EBITDA result doesn't make for an immediate compare. However, for the underlying operations for the business for the nine months, we had a loss of AUD 56.3 million at an EBITDA level. At a statutory level, the loss was AUD 125.3 million, but it included AUD 69.4 million of non-cash items. Cash position remains extremely strong. We started the financial year with AUD 210 million and on a pro forma basis, based on the convertible note being raised on the 1st of April, we finished the year at AUD 431 million. Clearly, it provides us with significant liquidity for any circumstances in the recovery, as well as giving us the opportunity to look at M&As down the track. If we look at our cash burn rate, the third quarter cash burn rate increased to AUD 6.9 million. This was due to two factors. One is that we paid some finance costs during the month of roughly AUD 700K. The significant improvement in working capital driven by the improvement in our B2B business plateaued during the quarter, so we didn't get the tailwind of improved working capital. Overall, the business has done a good job in incorporating getting everybody back to 100% salary and a reduction in significant government subsidies, all of which have been offset by the strong trading performance of the Webjet OTA business. As we had explained many times over the years, as our business grows, the working capital cycle is a positive to the production of cash for the business. As markets open up during the balance of calendar 2021, we would expect to see a continued improved working capital position for the business. Moving on to a more detailed look at our respective business units. We'll move to WebBeds. A transformation strategy has been underway for 12 months now. There are a significant number of initiatives that the entire business has been focused on. As we can see, our cost base is down for the nine month period of 42% on a compare basis. We are seeing, as I've already called out, bookings being impacted by when markets open up and how markets have handled the vaccination process. We are starting to see an improvement in the underlying business, and we expect that to continue throughout the new financial year. Our business margins are expected to be similar at a TTV level to pre-COVID margins, which will be around about the 9% number. The current margins are clearly impacted by a skewing to our lower margin businesses, primarily in APAC and the U.S.A. As I've just mentioned, the standout performer for us is the first market that's opened the business in the B2B side is North America, and we're seeing an improvement that's quite material against the underlying market. We have a high degree of certainty that the North American market will exceed the pre-pandemic results by the middle of this calendar year. We're well-positioned in markets that open up to outperform at a top-line level, primarily because as the world has changed over the course of the last 12 months and supply arrangements have been modified and consumer behavior has changed, we have skewed our sales efforts to two areas. One is on the supply side, getting domestic inventory across all of our markets, and you already can see the success of that in the North American business. On the customer side, we are leveraging the relationships that we have with OTAs across the world. The consequence of having a more viable product offering for the OTA market sees that the overall B2B market that WebBeds is addressing has actually expanded beyond the AUD 70 billion market opportunity that we saw pre-pandemic. The OTA business will continue to be the key driver of the WebBeds business, and we think that will be sustainable in the recovery, notwithstanding that we have a diverse customer base and a broad geographic mix, which incorporates not only OTAs, but super apps, which we expect to grow, and wholesalers, which give us access to niche providers of sales of hotel rooms that we previously would not be able to tap. We think they'll be the three drivers that will give us an expanded market opportunity. We have an expectation that retail travel agents, corporate travel agents, and tour operators will still exist and will still continue to have a viable place in the travel ecosystem. We also believe that they won't grow at the same rate as the aforementioned OTAs, super apps, and wholesalers for our particular business. Moving on to slide 10, our transformation strategy has been well underway for the last 12 months. The primary motivation behind the transformation strategy is to be the low-cost provider in a business of scale that is the WebBeds B2B business, in a business in which competitive advantage is derived by being the low-cost provider. We've taken and continue to undertake significant works that will enable us to take costs out of our business at scale and improve our ability to generate efficiencies at scale by reducing our cost base by at least 20%. There are a broad range of initiatives. We previously, a couple of months ago, gone through these quite extensively over a 1.5 hour presentation. The information is still available on our website for people who want to look at what we're doing and explore the initiatives underway and how we expect to drive the outcomes that we're focused on. The net results of that cost-based improvement is that our profitability target can now reflect with a high degree of confidence that we can get to a 5% EBITDA margin against our TTV. The net result is we expect on a targeted basis that our 844 can transform quite seamlessly at scale to an 835 model. As we go to slide 12, we have the opportunity of looking at how that has progressed over the journey of the WebBeds business. Our profitability pre-COVID continued to improve at an EBITDA level, and we started the business back in financial year 2013. As I reflect back on our first sales of AUD 14,000 in February of 2013, we spoke about at scale, trying to get to a target of 3% EBITDA on the back of 8% revenue to TTV margins. As we made scalable acquisitions during our journey, primarily through JacTravel and DOTW, our margins kept improving, and as we reduced the organic investment in our business, we saw those EBITDA margins get above the 853 target. We revised that target in the first half of FY 2019 to 844. Pre-COVID, first half of FY 2020, we got to a 4.5% EBITDA target, which was well on track for the 844 numbers. With the cost efficiency program that has been embedded, the cost taken out of the business, the utilization of robotics, machine learning, AI across the entire portfolio, the streamlining of diversified regional structures into a consolidated centralized structure provides us with a high degree of confidence that we're able to deliver against the 835 target once the markets open up and we get to scale. Moving on to the Webjet OTA business. Clearly the standout performer at an EBITDA level. For the last three months, we made AUD 3 million, providing with a AUD 4.1 million full-year result for the business. The improved profitability in the second half is down to a high degree of consumer confidence in being able to travel domestically. As domestic borders have opened, we're seeing significant improvement in underlying volumes across every state of Australia. The key driver has always been the fulcrum that's delivered value for Webjet shareholders is the significant brand strength that we have. As a consequence of the quality of service that we have provided during the pandemic, we are seeing a significant uplift in our market share in the Australian marketplace. Our costs are down 74% across the nine month period. The key driver in the reduction of costs is the scalable cost base that's tied primarily to TTV, and the biggest driver of that cost improvement is marketing and other volume-related expenses. We believe that in a market that continues to open up over the course of calendar years 2021 and 2022, that we will be able to drive a sustained above-market performance without the significant marketing cost that we have had historically. We're already seeing that as a reflection in our EBITDA margins already being back up above 30% for the second half of FY 2021. We believe that EBITDA margin will continue to improve in the new financial year. That level of outperformance has continued at the start of the new financial year, as reflected by April numbers showing us at 95% of April 2019 levels in a market that is a long way from 95% domestic availability in Australia. If we move to slide 15. Historically, we have been the number one OTA with more than 50% of the OTA flight market. We have picked up share, and we would have more than 50% of the entire OTA flight market. Our business has historically been skewed primarily to leisure. We have been the beneficiary of a strong shift from offline to online, which has continued to enable us to outperform the market. There has been great demand for leisure travel as markets have opened, and our ability to provide a unique booking platform to combine the four domestic carriers in Australia as they battle for market share. We give a unique consumer insight into pricing, and we give a unique consumer ability to combine fares across the entire spectrum that gives us a competitive advantage that sees us deliver the results that we have seen. As per the graph on slide 15, you do see an immediate impact as state premiers shut down borders, but an immediate rebound once those borders unlocked. We've been now profitable, with the exception of the Christmas new year period when there was the outbreak in New South Wales. That we've been profitable since the start of November, and our profitability continues to improve over the course of the last quarter of the financial year. We move to slide 16. You can see that as a reflection of whatever metric you wish to compare us to demonstrate that we have increased market share over the journey of FY 2021. Against the total market, as represented by BITRE data, we have outperformed the market by the top bracket you can see by 1.7 times. If we compare ourselves to anybody outside supplied the airline direct, we have more than doubled our share across our traditional competitive set. That structural shift is continuing to accelerate. As you can see, it accelerated again into April, which is again our best-performing month compared to our historic average of doing 5.5% of all GDS bookings. That doesn't capture the non-GDS bookings, in which we have been able to demonstrate significant outperformance, in particular with Rex and Jetstar in the Australian marketplace. What we're seeing is a shift to our platform primarily because our mix-and-match capability is well suited to a changing and reduced airline schedule. As new entrants and variable airfares enter the market, we're seeing lots of consumers take advantage of our incomparable matrix display that gives people the ability to compare and book multiple carriers instantaneously. It's been a great success over the course of that, and we have no doubt that in FY 2022 that we will continue to see an improved performance from the Webjet OTA business. Moving on to Online Republic. A similar strategy and ability to execute as per Webjet OTA. However, the Online Republic business is more levered to international travel. As soon as the Australia and New Zealand border opened, we became profitable in the Online Republic business in April. As I've mentioned, our focus in our recovery strategy is to take costs out of our business. The cost for the Online Republic business is down 43% on a comparable nine month basis. We expect ongoing margins to normalize around the nine to 10% level. We have appointed a new CEO for that business. We will be launching a brand rejuvenation in the first quarter of FY 2022 for this business and continue the rollout as markets open up across the board. What we are seeing, and April's results are testament to that, is that when the ability for people to travel internationally opens up, it makes the motorhomes business a viable alternative. We saw an immediate rebound of that business in April as markets did open up. If we go to slide 19. As for all of our businesses, the unifying elements of our strategy are as follows. Cost reduction to maintain a cost leadership position, as well as an ability to focus on domestic marketplace offerings. The Online Republic business is no different. We have captured domestic demand that previously we weren't addressing, that's across the numbers that you're looking at on page 19. You demonstrate that those two weeks of profitability were enough to tip the entire month of April into a profitable outcome, which is a testimony to the cost reduction strategy that we've now got and the ability for the revised management team to energize the employee base in our New Zealand-based business to outperform the overall market. Moving on to the financial summary, I'll hand across to Tony Ristevski, the CFO. Thank you, John. Good afternoon, everyone. I'll turn everyone's attention to slide 21 and go through at a high level the summary of the non-operating expenses. There's probably two major call-outs in the three months ending March, which despite the smaller numbers, the first half are worth mentioning. The first one being the fair value change in the embedded derivative for the convertible note. The way to think about it is that the AUD 55 million at the end is a combination of us determining what the intrinsic value was for that instrument, which aggregates to about AUD 93 million. When we initially bifurcated that instrument back at the start of the settlement period, it was roughly about AUD 38 million was the initial value, and then the residual value of AUD 55 million incorporates the incentive fee of AUD 33 million, and then the remaining amount of AUD 22 million is attributable to the ultimate intrinsic fair value to the debt instrument. It is a complicated process, and there is quite a bit of detail in our statutory accounting section 2.3 for those who are interested in understanding further the details and the policies that we've adopted there. The second major item worth raising for the audience is the write-off of our ERP cost- to- date. There is again, further detail in the capital sections I'll go through, in essence, there was a direction from the IFRIC organization that looked at the application of IAS 38, and effectively the direction taken was any cost via configuration or customization of software where it's under a SaaS arrangement, i.e., you're renting it, that no ownership transfers across so therefore the consequence the cost incurred should be accordingly expensed. Look, I'll park that for the moment and go into a bit more detail when we get to CapEx. They're probably the major two major call-outs on this slide. I'll turn to the next slide, which is our corporate costs. Consistent with past periods, the inclusion of Kyasa being like for like on a going-forward basis. The quarter ended slightly down or slightly up should I say on a quarterly basis at AUD 3.6 million. We'll see that number grow going forward in FY 2022 to approximately AUD 4 million per quarter. The growth is going to come from primarily from the increase in directors and officers insurance. Our process is to renew that every 31st of March. We've already seen a significant step up in that, and that's been consistent with many ASX 200 companies in the main, unfortunately. Going forward, the way to think about is AUD 4 million per quarter as what we expect to spend for FY 2022. Moving to the next slide, being slide 23. As John mentioned earlier, our pro forma cash is at a healthy AUD 431 million. At the time of raising the AUD 250 million of the convertible note on the 31st of March, we had AUD 130 million of term debt. One-third was paid off as part of the raising of the AUD 250. One-third was extended from November 2022 to November 2023, and one-third remained at November 2022. Since then, we've been working actively with our banking partners and managed to extend the residual amount that November 2022 to November 2023. That effectively gives us close enough to two and a half years of any sort of renewal events occurring, which gives us plenty of time to obviously look for the recovery to occur in due course. The other thing to mention here is, despite the healthy cash balance, and given the ongoing market uncertainties regarding travel resumption at this stage, we thought it'd be best prudent to defer any decision regarding paying the last year's first half dividend at this stage until late this calendar year when we announce our results late November of 2021 for the first half of FY 2022. Moving to the next slide on to balance sheets. The biggest item to call out here is as a consequence of the convertible note being settled soon after year-end, the existing EUR 100 million, the embedded derivative, which was traditionally cash classified as non-current, has moved into current as a consequence of that. All things being equal, the balance sheet from where we were three months ago in December to where we are has relatively remained constant. I'll move on to the next slide being cash flow. As John mentioned earlier, our working, be it our cash burn or working capital has remained or been around AUD 5.5 million going forward. The key thing there to call out is obviously as trading improves, not only do we start to turn into the black into that EBITDA level, but above and beyond that, we also get the benefit of working capital, in particular for B2B. When we look at last year as an example, our overall burn over the 12 months was roughly around AUD 24 million, whereas this first nine months, we're down to about AUD 5.5 million. It's been a significant step down from the horrific last 12 months. Finally, lastly, to the CapEx slide. Consistent with the first half results, we did see a step down in our spending in B2B. That's primarily on the back of efficiency being driven by the team, and that hasn't compromised our ability to execute on approaching dominant initiatives that John's outlined in the B2B transformation. That remains still on track to this calendar year under that transformation strategy within the parameters of the existing CapEx program and including on the second dot point there, what we expect to spend in the next 12 months is sufficient to drive that transformation strategy. Separately, as mentioned earlier in the one-off section, obviously the IFRIC guidance that came out late March is quite new as we try to understand the consequence of our organization, and this will apply to every organization both here and abroad. That's not unique to Webjet, its application. We'll spend the first half of the new financial year understanding what portion can be capitalized and what can't be. We thought it best be prudent at this stage to take a more conservative approach and expense the spend at this point in time, then we'll provide an update later this calendar year as we begin to understand its application and what portion can be capitalized. The way to think about it is because this software is rented, we don't own the code. To the extent we've got changes made to our booking platforms, to our Webjet Data Lake and the like, those items can be capitalized because that's software that is owned and controlled by Webjet Group. On that point, what I'll do then is hand back to John to talk about outlook. Thank you, Tony. The Webjet business is powered for travel and recovery. We know there's strong pent-up demand for travel. We see it in every market that opens up, that there's an immediate influx of bookings. I can just give you anecdotally a great example from this week. The U.K. opened up to Portugal on Monday the 17th. Clearly there were a substantial surge in bookings from that market. We are seeing the capacity for our business to plug into the existing infrastructure that it has in regards to our global footprint, our diverse customer base. That will enable us to capture that demand when and where borders do open. The factors around the shift to online continues to accelerate. All our businesses from the Webjet OTA, Online Republic, and the WebBeds business are all well-positioned to capture that demand. Our cost base, as I have mentioned earlier, is going to be materially lower going forward, providing us with substantial leverage opportunities and a substantial competitive advantage that enables us to aggressively pursue our corporate objectives. As Tony just covered, we have significant cash reserves, and our underlying objectives continue to be leadership in the segments that we compete in. For Webjet, that translates to being the global number one B2B provider, the Webjet OTA to increase our market share, and Online Republic to drive improved underlying performance. As we look to FY 2022, the vaccine rollouts are well underway on a global basis. The two standout markets that have a material impact to the Webjet business are the U.S.A. and the U.K. We are now seeing Europe accelerate the vaccine rollout across their markets, which will enable a Northern Hemisphere summer to take place in which travel will be possible. Many of the Mediterranean markets are open for business, and it will be a factor of those source markets whether or not they're prepared to travel to those destinations. We know there is a number of markets that are already open, and over the course of the last three weeks, we have seen a substantial improvement in the European business as we roll into May, and we would expect that to continue as we go to our historic peak period of the Northern Hemisphere summer. Across other markets, as vaccines roll out, we believe that the reopening of those markets will occur, though there is great uncertainty around the timing of when those markets do reopen. Looking at our business and looking at the data rather than the hyperbole around what we believe we can achieve, we do know that as markets open up, that we are picking up share as a consequence of the strategic initiatives that we've undertaken to drive a domestic output. The best example, which I've referenced, is the United States, in which we're already at 83% of 2019 volumes. The transformation initiatives across our broader Webjet business will enable us to outperform our historic base. I have no doubt that will occur. That will be a factor of a differing competitive set, a reduced number of direct competitors in the B2B space, an expansion of the B2B market by providing a unique offering to the OTA market. The fact that we will be the low-cost provider fills me with high confidence that when markets do rebound, that our market share position will reflect the outperformance that we've already been able to achieve in the U.S., in conjunction with the fact that the domestic market opportunity in those large domestic markets like the U.S. will enable that to happen. Speaking of business continues to prove [audio distortion] to be a focal point that we do not need much exposure to the customer since beginning. A strong active booking market, a highly scalable cost base. The unique platform that we have in place makes us well-positioned, puts us in a strong position to ensure that market share will continue to improve. On Online Republic, the breakeven number where the modest profit we made in April 2021 is a reflection of the travel bubble opening. As more travel bubbles open, we believe the Online Republic business will revert to being a significant contributor to our overall business itself. We have, obviously, substantial capital strength to pursue our leadership ambitions with significant cash reserves. The prudent actions that the board has undertaken in providing the improved access to capital gives us strategic options that very few travel companies have on a global basis. We have the capacity to invest in our business. We certainly will do that over the course of the next couple of years. As I open up the commentary, we see a world of opportunity ahead of us, and the Webjet team is agile, energized, and ready to go. With that, operator, I will take any questions. Thank you so much, John. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. A voice prompt on your phone line will indicate when your line is open. Please state your name before posing your question. Again, press star one. Sorry, Tony, can you hear me? Yes, John, I'm able to hear you. Are you able to hear me, John? Sorry, John's line just dropped out. He's redialing back in, so bear with us for a minute. In the meantime, I would just like to remind everyone, just to press star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off. Also, do remember to state your name before posing a question. Once your question has been answered, you may press star two to remove yourself from the queue. Everyone, kindly just do stay on the line. We're having some technical difficulties, and John will be right with us. Thank you. Hey, guys. John. Apparently, I've disconnected, and I believe we're in the middle of Q&A. Okay. We will be taking the first question. Your line is open. Please go ahead. Operator, can you hear me? Yes, I can hear you loud and clear, John. Okay. Let's start the Q&A. John, Tony. Quinn Pierson, Credit Suisse. Good afternoon. Thanks for taking time to answer some questions. Maybe just firstly, in terms of B2B market share, the Americas looks like a pretty clear story where you have emerged with a higher share of the hotel market. I guess outside of the Americas, do you feel that you've also, based on current data, that you've emerged with a higher share of booking activity? I don't necessarily mean just within the bed bank industry, but I guess, do you think you've taken share, or do you think that maybe the closure of some of your distribution channels, i.e., retail brick-and-mortar stores, that potentially in the near term you might have a lower share of the hotel booking activity? Any thoughts there would be appreciated. Hi, Quinn. Thanks for the question. Sorry, I'll rephrase. The markets, when they do open up, we clearly see there's an opportunity to win share. We have done that, as demonstrated by the activity that we've undertaken to reposition the North American market that primarily was an international outbound market to become a domestic-focused market. That's a substantially larger opportunity than the one that we were pursuing previously. As I mentioned, we're starting off at a pretty good clip, where we're at least 50% greater than the underlying market performance of North America, as measured by domestic flights in that particular marketplace. That's that market. Now, if I go to every other market where there's still very low level of activity, and most other markets don't have the same domestic opportunity that North America provides us, I'd say it's impossible for us to give you a clear answer on that performance relative to the market. What I will say is that when we get to a market that's opened and our customer base, which is more reflective of not immediate short-term bookings and people have a high degree of confidence to make bookings, I am confident that we will outperform the market because of the superior supply arrangements we now have, the broader supply arrangements we now have, and the broader distribution offerings and the bigger addressable market that we have. For all those reasons, when markets do open up, we will be able to tap into them. When the markets are operating on a book now, travel tomorrow basis, and there's not a high degree of confidence, I've got no way of reflecting that in my data at the moment. That's helpful color. Secondly, related to the Americas and the U.S., can you help us, I guess, put in context how big or material that region can be for you? I guess I'm trying to understand in terms of your distribution capabilities, in terms of your supply capabilities in that market, when the U.S. really gets to full steam over the summer and onwards over the next six to 12 months. I'm just trying to put in context in terms of order of magnitude, what the Americas could be for you compared to some of your other regions. Sure. Structurally, what we have done during the 12 months is we've pulled out the Americas as a separate division within our management structure. We have populated that with deeper local management experience, and that doesn't just extend to the U.S., but also to South America. We've got more people on the ground, a high degree of familiarity and expertise within those markets, and as I've touched on, we've got a focus on the contracting strategy for those markets to get the appropriate inventory that makes us saleable to the domestic marketplace, primarily in the U.S. The context of all of that is that instead of us operating as we have historically on the fringes of the. I'm not sure if you can hear me. I'm actually in our Dubai office doing this call, and someone keeps calling me on this conference line. To finish the answer, Quinn, the addressable market is greater than it was before. Previously, we were operating at 10% of the overall market's ability, and clearly, we've increased that size by 10-fold, which means that the North American market has the capacity to be roughly 80%-90% of the entire European market, and you've got our historic European numbers to look at as the benchmark pre-COVID. That's very helpful, and yes, I can hear you. I guess third and lastly from me, please, is in terms of EBITDA margins, you've given us a very helpful target for the B2B division. Most of your cost efficiency initiatives are focused primarily in the B2B division. I look at the B2C division, you've already hit 30% EBITDA margin with about half of your pre-COVID bookings, and you're talking to improved scalability in that business, with marketing seeming to be one line. Can you maybe give us some idea in terms of what the potential margin capacity of that division is at a full run rate, post a full reopening of travel? Thanks. Yeah. We consistently achieved EBITDA margins pre-COVID in the 40s. We are clearly targeting that number going forward. Access to that would be getting ahead of myself. Probably get back to in line, but not necessarily permanent cost efficiencies in that division? There's an assumption that there's a compression on the revenue side, driven by a smaller product mix of international, which has historically been a higher margin offering for us. We do have a more moderate revenue top line, but the overall EBITDA margins we think will be at least in line with what we've done historically. That's helpful. Appreciate your time. Thank you. Thank you so much. We will now take our next question. At the tone, please state your name before posing your question. Hi, guys. It's Tim Flynn here from UBS. Just two questions from me, if possible, please. John, you mentioned within the Webjet OTA business, 95% of April 2019 levels for the domestic business, you guys are doing roughly 50% more market share. Does that imply that the overall domestic market is still down 45, 50%? Do you see a scenario whereby as that comes back, you guys are likely to go well over 100% of what you were previously doing calendar year 2019? Hey, Tim. How are you? I'll answer the second part of the question and then come back to the first. Yeah, clearly, we'll see that we'll be well over 100% when markets get closer to the full pre-COVID capacity. That's a given. As to where the market is, the data we did publish in the top half of the graph, the market share show data till March, that's not published yet for April. I can't make a comment accurately, but we think that the market of available seats is around about 60% of utilization. It'd probably be a little bit less than that compared to the pre-COVID operations. Our guess, well, sorry, the facts were the March data you have in front of you. April, we would guess we're at least 50% to 60% to 70% ahead of those sorts of underlying available seat numbers. There's no data yet published that we can reference to for that month. Great. Just the other question around the convertible. You mentioned opportunity for acquisitions. Are you able to touch at all in terms of what sort of businesses you'd be interested in looking at or what sort of verticals? When we did our first convertible note, the message to the broader travel market is that we're available and open to acquisition ideas. Having done the second, we're seeing obviously a ramp-up of renewed vigor for people wanting to engage with us on that level. We're going to look at opportunities that are presented to us, and there are some things that we are definitely interested in. It'd be premature to call those out until it happens. There are plenty of conversations being had in the background at the moment. Great. I might just sneak one last one in, if I can. Are you able to talk about the Asian market at all, what you're seeing coming out of China in particular, please? Yeah. The Asian market hasn't had the same rebound that we're now starting to see in Europe and obviously have already seen in North America. The two markets that have been the least elastic over the last three months have been the Middle East and followed by Asia. We're seeing a strong domestic market in China and very little interregional opportunity at the moment. It's muted opportunity at the moment, and we're still a long way from getting the growth objectives that we would expect to see from that market. Great. Thanks, guys. Thank you so much. We will be taking our next questions by Wei-Weng Chen. Please go ahead. Your line is open. Hi, John. Just wanted to start with maybe just a clarification around the OTA business and your expectation that you see margin compression. Margins in FY 2021 were 9.6%, and historical has sort of been about 11%. I guess I'm just wondering how margins are going to improve from here once you get back to selling a full complement of products, including international. You're talking about the domestic, the OTA business, Wei Wen? Yeah, that's right. Look, I think we had been in excess of 10% revenue TTV margins for the last couple of years pre-COVID. We wouldn't expect those numbers to come back. It'll be similar to the number that we've delivered in the last financial year. Okay. All right. Thanks. Just historically, just on the B2B, you talked about the value proposition that WebBeds offers hotel partners versus, say, OTAs, sort of providing long lead time, higher value, lower cancellation customers. How does this change when your customer starts doing more OTAs? Does price become your main value proposition? Price is always a key component of the value proposition we give to our travel partners and the ability to do what you just articulated around long lead time bookings, lower churn factors, is a key driver in that value proposition. If our bookings were exclusively OTAs, yes, we would reflect the OTA market in its absolute terms. However, whilst it is our fastest and it will be, I think, our biggest sector, it is not going to be 50% of what we sell. It still applies to the majority of bookings that we make across the board. All right, great. Thanks. Just the last one from me. The other ASX-listed travel names have indicatively provided break-even time frames. Two of your three businesses are now break-even. What are your general thoughts on, firstly, when the Group breaks even, and then secondly, when does B2B break even? We do give you the break-even levels that are required. I'm not in a position to know when markets are going to open up. It's highly variable. I'm not prepared to put a timeframe out there. What I do know is when markets open up and consumers have confidence to travel, we see an immediate rebound in our position. Those markets opening up, it's an unknowable event. If it's an unknowable event, I'm not sure how I could reasonably be expected to predict an outcome. Okay, thank you. That's all for me. Thank you so much. We'll be taking our next question from Tim Piper of RBC Capital Markets. Your line is open. Please go ahead. Hi, John and Tony. Just a quick one. You sort of talked to North America as an early sign, an early market opening up. Maybe Portugal is a good example, which you touched on as one of your core markets. When we look at that slide, on slide nine, that pre-COVID customer mix of B2B. Over the past couple of weeks, the bookings that you're seeing coming through from Portugal, how different is your channel mix? What proportion is OTA coming through? I guess the second part of that question is, what does the booking mix look like? How much of it is through your directly contracted hotels versus other wholesale and other supplied rooms? Thanks. Tim, look, I'll start with the back half of that question and then come back to the first because I can be more definitive. On the back end, more than 50% continues to be directly contracted hotels. That hasn't changed in what we do sell. Pre-COVID, that was roughly 60% of all our hotel sales were directly contracted. It's a similar kind of number that exists. I wouldn't want to go through the specifics of what the OTA channel versus the others look like other than to say, if we had substantial volumes, at the half I'd outline a new pie chart that would call out those numbers. The OTA number on the current volumes would be the largest of the half a dozen segments that comprise the pie chart on page nine. Okay, thanks. I think maybe one headwind you've seen is short lead time bookings. What are you seeing more recently with borders opening up, and particularly in Europe with a bit more certainty? Are you seeing that lead time on bookings push out more significantly? Absolutely. The best example is the U.K. putting in the traffic light system on Monday this week. An immediate surge in bookings across the board, but in particular to Portugal. We're not seeing, I'll say, the Scandinavian markets or the German markets, where historically they book their summer holidays in the second week of January. We're certainly not seeing that level of lead time booking, but we are seeing a substantially improved booking window into the Northern Hemisphere summer from the U.K. source market this week. We're looking out to June, July, August, September bookings. Is there sufficient airline capacity to service a reasonable volume of holidaying in Europe over the summer period? Airline capacity will be the least of the constraints that people have. The low-cost carriers, the easyJet, the Ryanair, et cetera, have substantial capacity and the legacy carriers, the national carriers, all have weathered the storm quite well over the course of the last 12 months and are open for business. Those guys will certainly ramp up very quickly. Utilization is very low at the moment, and there's plenty of aircraft to come on stream. If the markets do pick up, it won't be a flight for capacity issue. Okay, great. Thanks for taking the question. Thanks, Tim. Thank you so much. We'll be going to our next question by Belinda Moore from Morgans. Please go ahead. Your line is open. Hi, John and Tony. Can I just clarify, WebBeds at scale, that was TTV of AUD 2.6 billion from memory. If you apply a 5% margin, that's AUD 130 million of EBITDA. Are you sort of generally like other travel companies sort of thinking that's FY 2024, or how should we think about that? Tony, the ERP cost of AUD 10 in 2022, does that continue over a number of years, please? I can. I'll deal with that one, Tony. You go, John. Yeah, Belinda, the comment, the question asked from Wei Wen, look, it's very difficult for us to put a timeframe because it's contingent on factors well outside of our control. I'm not putting a number of when that happens, sorry, timeframe when that occurs. Clearly we believe the following things to be fundamental to the transformative efforts that the business has undertaken. That we can grow in excess of what we were pre-COVID, and we can deliver a better EBITDA margin than what we had pre-COVID. Now, when that occurs, I genuinely don't know, and I'm not brave enough to put a date out there. Tony, you want to deal with the CapEx question? The CapEx million, the lion's share is next year. You would see in the one I showed four incurred, which we've expensed, AUD 10 million next financial year. The following year, we expect to spend probably about AUD 2 million on the shoulder of it being complete. In totality ends up being circa AUD 16 million here as a total program of work. Thanks very much. Bye. Thank you so much. We'll be taking our next question from Mark Viviers of BLSA. Your line is open. Please go ahead. Yeah, thank you. Thanks, guys. The question just a way of clarification. The page four of the press gives you that really helpful breakdown on your bookings or TTV by month. I'm just trying to understand the discrepancy between the claim that the OTA business is back to 95% of April 2019. When you do the math on the pre-COVID average for the entire year, it's usually a lot lower figure of about 66%. Is it just the fact that two years ago, April was a really seasonally low month, and that's why you're now cycling at 95% of that corresponding period? Is that how to explain that? John, I can jump in here, Mark. Go for it. Mark, it's 95 on domestic only. The 131 that you see in the slide there is inclusive of international. Oh, okay. It's just simple as that. Just that, yeah. Trans-Tasman. Yeah. It's the international portion that's still missing. Got it. I thought there's something missing there. Trans-Tasman, Mark, as well. There's three components to our booking numbers. Okay. Makes sense. Thank you. If you feel like there's any I mean, the OTA business seems like it's coming back great. Do you feel like there's any kind of compulsion to maybe drop the booking fee, reduce it down to AUD 35, given the level of competition that is potentially out there? At the same time, the airfares have come down, the percentage fee looks pretty chunky. Short answer, no. We're outperforming the market. The Australian consumers have voted with their wallets. They like the platform. They like everything that's offered, and they like the value proposition. That hasn't changed in the last 15 years. We are comfortable with the value that we provide to consumers, and they're clearly happy to engage with us and click the buy button, which we're naturally delighted about. Okay. All right. I'll leave it there. Thanks so much, guys. Thank you so much. That's all the time we have for questions. I'll turn the conference back to you. About our business. We look forward to engaging with you over the coming days. If you have any further questions, feel free to reach out to Tony or Carolyn or myself. Cheers and goodbye. Thank you so much. This concludes today's call. Thank you for your participation. You may now disconnect.