Wotif Group announces FY14 results
Australia's leading online travel company, Wotif.com Holdings Limited, announced FY14 results. Total revenue was 149.6 million Australian dollars, a 2.1% increase from the prior year.
·Revenue of $149.6 million, up 2.1% YoY, offset by increased costs related to investment in core technology and marketing
·Flights transaction value of $178.3 million, up 37.6% YoY
·Flights and Other revenue of $17.6 million, up 16.3% YoY
·Total Group Accommodation revenue of $129.3 million, up 1.9% YoY
·Group Accommodation revenue margins of 13.7% (FY13: 12.3%)
·3.3 million accommodation bookings processed, down 9.4% YoY
Wotif Group Managing Director and Group Chief Executive Officer, Scott Blume, commented:
"The competitive landscape for our business continued to evolve and rapidly change during the financial year. The Group achieved revenue of $149.6 million and we delivered a more diversified business, featuring accommodation sales as well as fast-growing flights and packaging businesses with a focus on international travel.
Revenue gains were predominantly driven by a commission increase (from 11% to 12%, from January 2014) and an average room rate increase (to $156.13 per night) but overall results were negatively impacted by a 10.8% decrease in room night sales year on year."
In discussing future directions, Mr Blume said:
"On 7 July 2014 it was announced that the Wotif Group had entered into a Scheme Implementation Arrangement with the Expedia group whereby it is proposed that the Expedia group will acquire 100% of the fully-diluted share capital* in the Wotif Group.
If implemented, Wotif shareholders will receive a total cash consideration of A$3.30 per hare comprising: A$3.06 cash per share; plus a A$0.24 special dividend paid by Wotif Group on or before the Scheme Implementation Date (Special Dividend), which is expected to be fully franked.
Those shareholders who can capture the full benefit of the franking credits associated with the Special Dividend will receive an additional benefit valued at A$0.10 per share.
The total cash consideration of A$3.30 per share, excluding the potential benefit of franking credits associated with the Special Dividend, values Wotif Group’s fully diluted equity at approximately A$703.1m.
The Scheme is subject to an independent expert concluding that the Scheme is in the best interests of Wotif Group shareholders; that Wotif Group shareholders approve the Scheme by the requisite majorities; FIRB approval; and clearance by the ACCC and the NZCC.
We are progressing through the Scheme process and currently expect it to conclude in late October 2014. More information for shareholders will be available in Scheme Implementation documents, which will be dispatched to shareholders in the near future."