WOTIF PROFIT DROPS AMID TAKEOVER

Written on the 12 August 2014

WOTIF PROFIT DROPS AMID TAKEOVER

WOTIF.COM Holdings (ASX:WTF) has reported a 15 per cent decline in profit to $43.2 million, as competitors close in on the online travel booking market.

Revenue was up 2.1 per cent to $149.6 million for the 12 months to June 30, offset by increased core technology and marketing costs.

Managing director and CEO Scott Blume (pictured) says the results were negatively impacted by a decrease in room sales, as the industry expands.

“The competitive landscape for our business continued to evolve and rapidly change during the financial year,” Blume says.

“The group achieved revenue of $149.6 million and we delivered a more diversified business, featuring accommodation sales as well as fast-growing flights and packaging businesses with a focus on international travel.”

Blume says the boost in revenue was driven by an increase in commission and average room rates, while sales were down 10.8 per cent year on year.

The travel company is finalising regulatory approval for a $703 million takeover bid by Expedia.

As a result WTF didn’t announce a final dividend, instead offering 24 cents on top of the $3.06 cash consideration per share.

Shareholders eligible for the special dividend will receive an additional benefit of 10 cents per unit.

The scheme implementation agreement is expected to be completed in October.


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter