Free Subscription

  • Access 15 free news articles each month

Professional

Try one month for $5
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • Exclusive Masterclass access. Part of Retail Week 2021

Wotif’s profit drop

 

wotifOnline travel group, Wotif.com, has suffered a 15 per cent slide in its full year profit amid increasing costs, and a fall in a accommodation bookings.

Wotif made a net profit of $43.2 million for the 12 months to June 30, down from $51 million a year ago.

The company is currently the subject of a takeover bid by global travel giant Expedia.

Wotif lifted its full year revenue 2.1 per cent to $149.7 million due to increasing commissions and higher room rates.

“The group achieved revenue of $149.6 million and we delivered a more diversified business, featuring accommodation sales as well as fast growing flights and packaging businesses with a focus on international travel,” said CEO, Scott Blume.

Blume said the revenue gains were predominantly driven by an increase in commissions and room rates, but were offset by a decrease in room night sales.

Wotif has entered into a scheme of arrangement for Expedia to take 100 per cent ownership of the company for around $703 million, pending shareholder and regulatory approvals.

The company did not announce a final dividend but will pay shareholders a special dividend of 24 cents per share if the takeover goes ahead.

In addition to its main website, Wotif owns a string of other sites, which include lastminute.com.au, travel.com.au and asiawebdirect.com.

AAP

You have 7 free articles.

Masterclasses are for professionals only

Only $5 p/m for first 3 months
Become a Professional Already a professional? Login
  • Daily exclusive Members Only content straight to your inbox
  • Access to exclusive Retail Week events including all 4 Masterclasses 28 February - 3 March
  • Retail insights and intelligence
  • On-demand videos with industry professionals
  • Weekly careers advice specific to retailers
  • Independent research reports and forecasts
  • Q&A with industry experts
  • Content, content, content! Weekly and quarterly magazines