Asia woes dent Wotif

Wotif has warned that it will post a lower profit this financial year due to its underperforming Asian business continuing to drag on earnings.

Wotif has warned that it will post a lower profit this financial year due to its underperforming Asian business continuing to drag on earnings.

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 2ยข at $4.73.

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