Finance Finance News Wotif profit falls amid tough competition

Wotif profit falls amid tough competition

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Online 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,” chief executive Scott Blume said.

Mr 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.