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

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter