Wotif net profits to suffer in FY2014

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first_imgWotif.com’s operating costs will increase by approximately AU$9 million, driven by an intensification in marketing (+AU$4 million year-on-year) and salaries/wages (+AU$3.8 million year-on-year). Total Group revenue is anticipated to rise approximately 4.5 percent during first half FY2014. Source = ETB News: P.T. “The increase in our marketing and information technology costs in the first half is to support the strategic initiatives, invest in new market segments and respond to rapidly changing market conditions.” Wotif.com Holdings has released a market update, estimating net profit after tax for FY2014 to be in the range of AU$21.9 million to AU$22.6 million, compared to AU$27.5 million in the prior half-year. The boost to marketing has been attributed to a competitive online advertising marketplace, while salary increases translate to a rise in the development of Information Technology staff. The Wotif Group has forecast a reduction in net profits of approximately AU$5 million for the first half of FY2014, while the outlook for the second half of the year remains volatile. “We need to continue to work hard to sustain and grow our core ANZ accommodation business as we build out new business initiatives,” Wotif Group managing director and chief executive Scott Blume said. Total Transaction Value (TTV) for the first half of the financial year is expected to be relatively flat, however, this will likely be offset by strong growth in flights and gains from dynamic packaging.last_img

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