Wotif hits record with 14% profit increase

Wotif hits record with 14% profit increase
By admin

Wotif has reported a record pre-tax profit of $81.3 million, a rise of 13.6% on the previous year, with its flights business the “standout" performer.

The online retailer said the result to June 30 beat profit guidance issued in May.

Revenue climbed 5% to $145.3m with after tax profit up 13.8% to $58m.

Wotif managing director Robbie Cooke said the result is “a return to form” for the company.

The “standout” performer was its flights operation with a 30% increase in sales to $110m. Flights now contribute 9% of Wotif’s transactions by value, Cooke said.

Total room nights sold climbed from 6.97m to 7.04m.

“The year saw us continue to sell around one in ten of all hotel beds in Australia,” Cooke said. “This was a very credible performance given the continuing appetite of leisure travellers for offshore travel, fuelled by the strength of the dollar.

“It also highlights that there is still substantial distribution in Australia that we have not yet captured.”

Mobile was another key driver during the year, Cooke said, with its mobile site and recently launched app accounting for 14% of total site visits and 9% of room nights sold.

Cooke said the outlook for 2012 remained the same  – with the high dollar putting a strain on domestic travel.

“Against that backdrop we think it is reasonable to assume that our international flights business will continue to be a beneficiary of the cycle and accommodation bookings for business on Wotif.com, which tends not to be impacted by currency, will remain robust,” he said.

But Cooke warned that leisure sales will remain "unremarkable".

"With key leisure markets experiencing softness there will be great opportunities for consumers to score exceptional deals," he said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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