WOTIF SHARES DOWN DESPITE STRONG PROFITS

Written on the 31 August 2010

WOTIF SHARES DOWN DESPITE STRONG PROFITS

WOTIF.COM Holdings Limited (WTF) shares went downwards by 6.5 per cent today despite the online travel agent recording 22 per cent net profit growth for FY10.

In an announcement to the ASX Managing director Robbie Cooke was upbeat about growth on 2009’s record figure, but shareholders appear to have expected more from the Milton-based company that recorded 26 per cent growth last year.

“One of the most impressive features of this result is that it comes off the back of a 26 per cent profit increase last year – a year in which we were riding on the tail winds of an exceptional combination of events that really played in Wotif’s favour,” he says.

“It was never going to be an easy task to beat last year’s numbers, so it’s a real credit to the team here to have delivered another record outcome – increasing profits by $9.5 million.

But the downward shift in the share price shows that many investors are concerned Wotif might not be able to keep up its stellar run, with the looming threat of bigger competitors like Expedia and Flight Centre.

Wotif was also able to boost revenues by $6.4 million in FY10 on the back of expansion into flight bookings through Wotflight.com.

“While it’s still early days, it’s great to see our flights initiatives gaining traction in the year. Wotflight and our other flight channels contributed close to 5 per cent of our revenues this year,” he says.

“We see the sale of flights as an incremental value-add and a logical expansion of our offering to Wotif’s large customer base.”

“Growing our share of the Australian accommodation segment from approximately 8 per cent to 10 per cent over the last year bears testament to the compelling Wotif model. We provide a win-win outcome for consumers and hoteliers alike.”

The company has also boosted its full year dividend by 4 cents a share this year.


Latest News

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

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