Asia woes dent Wotif profit
The company, whose sites include lastminute.com and LateStays, has forecast a net profit of between $50.5 million and $51.5 million this financial year, down from $58 million previously.
The guidance includes $2.5 million in asset write-downs.
Wotif said total transaction value - the price at which travel products and services are sold - was expected to be "relatively flat" for the year.
Wotif chief executive Scott Blume said improvements in Australia and New Zealand had been eroded by revenue shortfalls in the Asian business.
On Monday he unveiled a five-point strategic review that included an attempt to stimulate traffic and revenue growth from two transactional websites in Thailand.
Wotif has also begun to "refresh" its marketing.
Shares in Wotif fell as much as 5 per cent on Monday before closing down 2¢ at $4.73.
Frequently Asked Questions about this Article…
Wotif has forecast a net profit of between $50.5 million and $51.5 million for the financial year, down from a previous forecast of $58 million.
Wotif says its underperforming Asian business has continued to drag on earnings, with revenue shortfalls in Asia eroding improvements made in Australia and New Zealand.
Yes. The company’s guidance includes $2.5 million in asset write-downs, and that amount has been factored into the reported net profit forecast.
Wotif expects total transaction value — the price at which travel products and services are sold — to be relatively flat for the year, indicating limited top-line growth.
Wotif’s chief executive unveiled a five-point strategic review that includes efforts to stimulate traffic and revenue growth from two transactional websites in Thailand and a refresh of the company’s marketing.
The article notes that Wotif’s group includes websites such as lastminute.com and LateStays.
Shares in Wotif fell as much as 5% on Monday after the warning, before closing down 2 cents at $4.73.
Investors should monitor progress on Wotif’s five-point strategic review, any improvements in its Asian operations (including the two Thai transactional sites), the success of its marketing refresh, changes in transaction value, and any further revisions to profit guidance.
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