A record half-year profit for Wotif.com
Published: 21 Feb 2008: Accommodation website Wotif.com has posted a record half-year profit of $17.1 million, representing a 43% increase over the prior year.
This result was driven by a 22% increase in room nights sold across the 44 countries available on Wotif.com´s website.
Wotif.com´s Managing Director and CEO, Robbie Cooke said his company sold a record 2.2 million room nights (up 22%), and improved room rate yields by delivering an average 4.9% uplift in room rates.
"It is particularly pleasing to note that the 42% increase in our after-tax profit (up to $17.1 million) was driven off the back of a 32% increase in revenues. This strong rotation of revenue to profit clearly demonstrates the efficiencies that the Wotif.com model is able to achieve as scale increases. With our operating margin now sitting at 60% (up from 57%), we are well positioned to maximise returns for our shareholders from future sales growth," he said.
He continued, "Having now successfully completed our takeover of travel.com.au Limited, we are focussed on integrating the operations of both organisations. The growth achieved by the travel.com.au team in the last six months is impressive with a 52% increase in TTV (total transaction value)."
Cooke noted that the acquisition of travel.com.au and the pending transaction with Asia Web Direct will signficantly lift user traffic across the network of sites owned within the Group. Wotif.com achieved 3.2 million user sessions per month (up from 2.5 million sessions in December 2006). Travel.com.au achieved almost 1.1 million user sessions per month in the first half of 2008, while Asia Web Direct achieved approximately three million user sessions per month in the same period.