WOTIF PROFIT DROPS AMID TAKEOVER

WOTIF PROFIT DROPS AMID TAKEOVER

WOTIF.COM Holdings (ASX:WTF) has reported a 15 per cent decline in profit to $43.2 million, as competitors close in on the online travel booking market.

Revenue was up 2.1 per cent to $149.6 million for the 12 months to June 30, offset by increased core technology and marketing costs.

Managing director and CEO Scott Blume (pictured) says the results were negatively impacted by a decrease in room sales, as the industry expands.

“The competitive landscape for our business continued to evolve and rapidly change during the financial year,” Blume says.

“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.”

Blume says the boost in revenue was driven by an increase in commission and average room rates, while sales were down 10.8 per cent year on year.

The travel company is finalising regulatory approval for a $703 million takeover bid by Expedia.

As a result WTF didn’t announce a final dividend, instead offering 24 cents on top of the $3.06 cash consideration per share.

Shareholders eligible for the special dividend will receive an additional benefit of 10 cents per unit.

The scheme implementation agreement is expected to be completed in October.

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