Wotif.com Holdings

By Dan Stratful (AFA)

Tuesday 19th June 2012

Internet stocks such as Wotif.com Holdings (ASX: WTF) have enviable business models which require low capital expenditure leading to attractive margins. WTF has good brand awareness, and is ranked as the number 1 Travel - Destinational and Accommodation site in Australia, a spot it has held for 8 consecutive years.

In fact 10% of all Australian accommodation is sold by the Wotif Group.

WTF's full year result to 30 June 2011 (FY11) saw its typical growth rate stall, as profit fell 4% to $51 million, however the first half ending 31 December 2011 saw WTF report a record $28.8 million profit which shows it has begun FY12 well.

The company has recently confirmed it is on track for 9% - 13% profit growth in FY12 with net profit expected to come in at between $55.5 million - $57.5 million.

WTF is a growth share which has more than doubled its profit from $26 million in 2007 to over $55 million in 2012.

With no debt, WTF generates a high return on shareholders equity (ROE) and looks well placed for further growth in the years ahead.

The FY12 result will be released to the market on 22 August 2012.

About Wotif.com Holdings:
WTF operates leading online travel and accommodation brands around the world with an emphasis on the Asia-Pacific region. Brands include wotif.com, lastminute.com.au, asiawebdirect.com, latestays.com and travel.com.au. WTF's accommodation brand is ranked number 1 in New Zealand and Australia with brand awareness of over 60% in Australia and 30% in NZ. WTF listed on the ASX in June 2006 at $2 per share and today its headquarters are in Brisbane with offices in NZ, the UK, Singapore, Malaysia China and Canada.

Status: GROWTH BUY

WTF's shares today traded at $4.07

Disclaimer
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