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

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter