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

ENTREPRENEUR'S NEW VENTURE SWEET AS 'HONEE'

A MELBOURNE entrepreneur hailing from the food tech scene has launched a new venture to change the face of beauty....

WATER VENTURE TAKES ON THE PLASTIC SCOURGE

DAMIEN Stone has a thirst to build the world's biggest social enterprise in a clean fight against the plastic ...

BUNNINGS BOSS JOHN GILLAM QUITS WESFARMERS

THE man behind Bunnings' home improvement domination has resigned from his role in charge of the retailer.

...

NOVOTEL SALE REFLECTS HOT BUYERS' MARKET

AFTER two decades in the hands of a private syndicate, The Novotel Melbourne Glen Waverley has been sold to the Sy...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter