WOTIF PROFITS DROP WITH FOCUS ON MARKETING EXPENDITURE

Written on the 26 February 2014

WOTIF PROFITS DROP WITH FOCUS ON MARKETING EXPENDITURE

WOTIF.COM Holdings Limited has suffered an 11.1 per cent decline in operating profit to $36.4 million, following increased marketing and information technology costs to compete with rival travel companies.

Net profit after tax decreased 18 per cent to $22.64 million, despite a record jump in revenue to $75.8 million – up 3.5 per cent from the previous corresponding period.

Managing director and chief executive officer Scott Blume (pictured) says the increased expenditure is in line with the company’s strategic plan.

“This work is progressing on budget and on schedule and is likely to be completed by the end of FY14.

“The current result includes incremental investment in technology costs totalling $1.5 million when compared to the prior corresponding period.

“This is in addition to an increase in information technology amortisation of $1.8 million, compared to the same half last year,” he says.

An additional $4.5 million was spent on marketing, to highlight the company’s flight offering and partnerships with other brands.

Blume says their revenue growth is an achievement, in a heavily saturated market.

“In a competitive retail environment we have been able to grow total revenue on the back of some impressive growth in the flights business and the margin initiatives for ANZ accommodation.

“These gains have been offset by a 6 per cent decline in accommodation TTV (total transaction value).”

The company plans to focus on growing its offshore market in the next half of the year, particularly in Asia.

WTF will pay a fully franked interim dividend of 10c per share on March 26.

Shares are up 0.181 per cent, trading at $2.75 each.


Latest News

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

IOT GROUP ORDERS FIRST PRODUCTION OF ROVA DRONE

IOT Group (ASX:IOT) has ordered production of 40,000 units of the ROVA flying selfie drone from Chinese technologies ...

Related News

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...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter