Wotif forecasts FY profit drop

Wotif is the second online services company to be showing a strain today as the release of its full-year guidance failed to meet expectations.

Wotif is the second online services company to be showing a strain today as the release of its full-year guidance failed to meet analyst expectations.

The online travel booking services company slid by as much as 5.1% to at 1330 AEST, reversing earlier gains of 1.7%, following its announcement that its underlying  net profit after tax (NPAT) is expected to be between $53 million and $54 million for 2012-13.

Analysts polled on Bloomberg were anticipating the underlying NPAT to be $57.2 million and the company's previous year underlying NPAT was $58 million.

NPAT attributable to shareholders is expected to be between $50.5 million and $51.5 million, which includes $2.5 million worth of write-downs in the value of its AWD domain names.

Wotif said that Total Transactional Value (TTV) is expected to be flat, with increases in Australia and New Zealand offsetting losses in Asia and the rest of the world.

Companies in the online space are having a hard day, with online comparison insurance company iSelect crashing after it debuted on the ASX.