Can't ignore the Wotif results

There was no WTF for WTF as they reported a good set of results today. See
Travelweekly
Eyefortravel
Travelmole
Courier Mail (number one Brisbane Newspaper - Wotif's home town)

Two interesting points from this

1. Net profit after tax of AU$16.5mm up 38% year-on-year. That is a great number as above guidance given but both the guidance and the growth is probably the lowest annual growth ever for Wotif. Market was expecting more and the stock price has dropped 3-5%.

2. They are paying a dividend of 1 cent. Investors do not normally turn to Internet stocks for dividend returns - that's what banks and telcos are for. Is only a distribution of $2mm or so. Not sure how to read that - is it just for show, to highlight that Wotif does not need money or maybe they are trying to build story that they should not be treated as an Internet stock and more like "regular" investment, one that can produce an attractive divident yield. Convincing the market that Wotif is "regular" will help with volatitity but not with the multiple on their value.

I have said before that growth out of Australia will be hard for Wotif, so they are right to try and adjust the market's thinking on their future growth. Congrats to Graeme, Andrew, Robbie and the rest on this result and approach.