Wotif making progress despite “challenging landscape”.
Online travel agency Wotif.com has just released its full year results for 2013/14, with a $43.2 million after-tax profit (down 15.4%) achieved on revenue of $149.7 million.
Chairman Dick McIlwain said the performance reflects the changing nature of the busines environment in the Australian travel industry.
“A shift toward overseas travel has been quickly followed by intense competition for the remaining business in Australia,” he said, with successful investments to introduce new sources of revenue coming with reduced margins.
Profits were hit by increased spending on online search, advertising, technology and write-offs of domain name valuations – but initiatives such as the company’s new dynamic packaging operation produced “remarkable results” to offset some of the decline.
Revenue from Wotif’s core accommodation booking business increased 3.1% to $129.3 million “in the face of competition from a raft of overseas online booking sites” – however Wotif’s accommodation TTV declined 8% to $943 million and overall room nights totalled just over 6 million, down 11% overall.
The company’s flights division saw a healthy 37% increase in TTV to $178.3 million, mainly attributable to international flight sales.
CEO Scott Blume confirmed that documentation relating to the Expedia bid for the company will be issued towards the end of this month, in preparation for a shareholders’ meeting to consider the takeover in early October.
More information in today’s Travel Daily.