Asia drags down Wotif as profits slide

Asia drags down Wotif as profits slide
By admin


A dismal performance in Asia dragged down Wotif in the first six months of the financial year as it reported a 5% fall in net profit after tax to $27.5 million.

The decline in Asia offset what it described as a "modest" 1% revenue gain in its Australia and New Zealand accommodation business and "solid" 11% rise in flight sales.

Wotif blamed the profit decline on a 6% rise in total operating costs as a result of increased marketing, web maintenance and increased staffing levels.

"The results reflect a combination of factors and mixed performance by the individual lines of business," recently-appointed Wotif chief executive Scott Blume said. "Both Australia and New Zealand accommodation and flights and other were positive performances in a generally lacklustre domestic retail environment and given the continuing strength of the Australian dollar, which continues to stimulate international travel."

But these were offset by a sharp 19% fall in revenue from Asia and the rest of the world.

Group accommodation total transaction value (TTV) fell 1% to $532 million with room nights tumbling 4% to 3.5m compared to the previous corresponding period.

Flight "and other" TTV climbed 11% to almost $63m, with flights alone contributing $59.9m, up 14%.

Wotif said a phased increase in supplier commission to 11% was on track.

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