Wotif Group announces FY13 results
Australia's leading online travel company, Wotif.com Holdings Limited, announced FY13 results. Total revenue was 146.6 million Australian dollars, a 0.9% increase from the prior year.
Results summary ($m) (for more detail see Appendix A)
• Record TTV and Revenue for the year were offset by cost increases of $9.1 million,
including one-off items of $2.3 million
• ANZ accommodation revenues were up by $4.1 million, primarily from commission increase to 11% implemented from January 2013
• Australia and New Zealand (ANZ) accommodation room night volumes flat with Asia and Rest of World (ROW) room nights continuing to fall. Asia and ROW revenue down $3.3 million year-on-year
• Record flight performance with flight TTV increasing by 17.5%. Flights and Other revenue growth up $1.6 million year-on-year
• Increased marketing investment saw marketing costs up by $2.3 million year-on-year
• One-off items from write-off of domain names and accelerated IT Development Costs year-on-year impact of $2.3 million
Wotif Group Chief Executive Officer, Scott Blume, commented:
“It has been a challenging year for the Group. Some positive momentum has been achieved, with accommodation revenue increases and the growth of the flights business. The flights business has been the standout performer for the Group and we are optimistic that this trend will continue into FY14. However, these revenue gains have been offset by a continued deterioration in Asia and ROW business volumes, which are being addressed separately as part of the previously announced strategy projects.
In a period of flat TTV and revenue growth our costs grew by $9.1 million year-on-year, including one-off write-offs of $2.3 million. In particular, we made a deliberate decision to continue to invest in marketing and technology to give us a solid base for the future.”
In discussing the future direction for the Company Mr Blume said:
“We are working very hard on implementing the outcomes of the strategies released to the market in June 2013. Whilst it will take some time to see the effects of this work flow though to TTV and revenue growth, we have solid plans in place and work has already commenced on a number of key initiatives. We also have a number of key projects underway around packaging, mobile and customer reviews as well as the previously announced commission increase to 12% to be implemented progressively from January 2014.
Although the Australian retail environment continues to be problematic I am confident that we have the right plan in place to improve the overall business and financial performance for the Group in the coming year.”
The Board has confirmed a final fully franked dividend of 11.5 cents which takes the total dividend for the year to 23.0 cents (compared to 25 cents last year). This sees the Group returning 95% of profits to shareholders