Reports filed with the Australian Securities and Investments Commission show Zuji Pty Ltd has accumulated losses of almost A$33 million through its Australian corporate history.

In 2010 it lost A$6m. In 2009 it dropped A$7.6m. In 2008 losses amounted to A$2.6m. And so on.

Meanwhile, analysts estimate Zuji lost -A$3.6m across its entire regional business, which includes operations in Singaporre and Hong Kong, in 2012.

Owner Travelocity is selling the online travel agent to Webjet for US$25m in a transaction due to settle this quarter.
An initial report in TravelTrends.biz after the transaction was announced in December suggested Zuji was profitable.

This was based on a statement from Webjet stating it had paid US$25m for Zuji at an estimated price earnings multiple of 4.6x for 2012, implying a profit of around US$5m.

However, I missed the part where Webjet said the 4.6x estimate included $9m in projected synergies for 2012.

In other word synergies that hadn't occurred applied to a year that has already passed.

Anyway, taking this information into account, it turns out Zuji will post the estimated  -A$3.6m loss referred to above , for 2012.

That's an awfully long way from profitability, which of course changes the complexion of the acquisition.

Full story:

www.traveltrends.biz/ttn555-webjet-buy-zuji-a-long-term-loser-33m-in-australia-alone