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

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

HOW A FORMER BEAUTY THERAPIST SCORED AN INVESTMENT FROM SHARK TANK'S STEVE BAXTER

WHILE most teenagers are busy getting through their homework and social media, Jade Castle was already running a b...

Related News

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

HOW A FORMER BEAUTY THERAPIST SCORED AN INVESTMENT FROM SHARK TANK'S STEVE BAXTER

WHILE most teenagers are busy getting through their homework and social media, Jade Castle was already running a b...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter