Wotif.com Holdings announces full year results

MEDIA RELEASE – NEW ZEALAND

Wotif.com Holdings Limited announces full year results (FY2009)

Record full year profit up 26% to $43.5 million

Auckland – 26 August 2009, Wotif.com Holdings Limited today announced a 26% surge in after tax profits, delivering a record $43.5 million result. This performance was fuelled by a 29% increase in room nights sold, as consumers migrated to the Wotif Group's online channels seeking the value, convenience and simplicity offered online.

The Wotif Group achieved record sales in the year for its New Zealand accommodation partners, delivering a 22% increase in room nights sold.

FY2009 Highlights

·                 Net Profit After Tax up 26% to $43.5 million

·                 6.33 million room nights sold, up from 4.91 million last year

·                 523,000 room nights sold for New Zealand accommodation partners (up 22% on last year)

·                 More than 1,550 New Zealand accommodation suppliers partnering directly with the Wotif Group

·                 Launch of 3 month booking window (previously 28 days) on Wotif.com

·                 Wotif.com brand recognition in Australia at 50% and New Zealand awareness jumped to 30% (up from 25% last year)

·                 14,500+ hotels and accommodation venues working directly with the Group in 49 countries

·                 Flights booking platform enhanced for FY2010 re-launch

·                 Successful integration and positive full-year contribution from travel.com.au Limited and Asia Web Direct (HK) Limited acquisitions

·                 11 cent final dividend (fully franked), taking full year payment to 17.5 cents (up from 15 cents last year)

Summary of Results (for more detail see Appendix A)

FY2009
Actual

FY2008
Actual

% Change from Prior Corresponding Period

Total Revenue

$121.3m

$94.0m

á29%

Net Profit before Depreciation, Amortisation and Taxation

$68.6m

$53.8m

á28%

NPBT

$62.2m

$49.0m

á27%

NPAT

$43.5m

$34.5m

á26%

Commentary

Despite the significant economic headwinds experienced in the year, the Wotif Group delivered a record $43.5 million net profit after tax for the 12 months to 30 June 2009.

This 26% profit increase saw the Group process transactions valued at $993 million for its accommodation and flight partners.  A total of 6.33 million room nights were sold by the Group (up from 4.91 million last year) for the 14,500 plus accommodation suppliers with whom the Group works in direct partnership.  The year saw strong migration to the Wotif Group's websites as customers took advantage of the value, convenience and simplicity offered for booking travel online.

In recognition of the Group's strong performance, the Company declared a final fully franked dividend of 11 cents, taking the full year payout to 17.5 cents (up from 15 cents last year).

Wotif Group’s Managing Director and Group CEO, Robbie Cooke, commenting on the result, said:

"We were facing some significant headwinds on entering the financial year.  Consumer sentiment was deteriorating daily and we were as a community being conditioned for an economic meltdown.  The challenges posed by this backdrop were new for the Wotif Group as our business model had not in its 9 years of operation been tested by a recessionary environment.

We believed our model would continue to resonate with consumers in a down cycle.  We expected that consumers would, more than ever, be focused on value and as a result would be drawn to the compelling value available online. 

Our thinking was that consumers would take shorter breaks, travel more domestically, transact in the last-minute space, and would move to the online environment to secure best value for their accommodation and other travel needs.

These theories seemed sound, but we were definitely in unchartered waters.

Our performance in the year demonstrates that the Wotif Group business model has come through with flying colours.  This has been the most successful year ever for the Group, with record transaction levels, revenues and profits."

Cooke continued:

"One of the slightly perverse outcomes we have seen this year has been an increase in corporate travellers booking with us.  This outcome is counter-intuitive given the definite reduction in corporate travel in the wider travel market.  We have benefited in this corporate space as business travellers, just like the wider community, are looking to control their overall travel spend and are seeking best value  We are hopeful that those first-time corporate bookers will stick with us as markets rebound."

Cooke, in commenting on the Group’s acquisitions, said:

"In FY2009, our newly-acquired businesses contributed for a full year for the first time.  Asia Web Direct assisted in driving the Group's Asian room night volumes by 100%.  Our Asian Business Unit achieved a record $128 million (excluding taxes) in transaction value for sales of Asian hotels.

travel.com.au Limited performed very strongly with our team beating our internal cost saving target with more than $2 million of ongoing annualised savings realised following integration with the Wotif Group.  The lastminute.com.au business achieved a 170% increase in the total value of flights and accommodation sold in the year."

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