Marketing costs hit Wotif bottom line

Marketing costs hit Wotif bottom line
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Wotif has seen first half after-tax profits slide 18% to $22.6 million with the retailer attributing the fall to increased marketing and technology costs.

The result was on the back of record revenue of $75.8m, up 3.5% on the previous corresponding period.

Although TTV from accommodation dipped 6%, revenue climbed 4%. Flight revenue and TTV jumped 20% and 44% respectively.

The financial result was at the top end of guidance issued in December.

“In a competitive retail environment we have been able to grow the total revenue on the back of some impressive growth in the flights business and margin initiatives for ANZ accommodation,” chief executive Scott Blume said. “These gains have been offset by a 6% decline in accommodation TTV.”

IT costs climbed $1.5m over the previous corresponding period while marketing expenditure increased $4.5m, Blume said.

The latter was the result of market conditions and the costs of promoting dynamic packages and flights, he added.

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