Online travel group Wotif.com has posted an 18 per cent slide in its half year profit.
Wotif said on Wednesday it had made a net profit of $22.6 million for the six months to December 31, down from $27.5 million a year ago.
The company attributed the majority of the losses to increased spending on marketing and information technology.
But the result was at the top end of its guidance issued in December, when it forecast a sharp drop in half year profit to between $21.9 million and $22.6 million.
By the end of that day Wotif shares plunged 31.8 per cent to $2.85 - their lowest value since June 2008.
But the group said on Wednesday it achieved record revenue of $75.8 million, up from $73.2 in the previous year, as brand awareness hit an all-time high.
"In a competitive retail environment we have been able to grow total revenue on the back of some impressive growth in the flights business and margin initiatives for ANZ (Australian and New Zealand) accommodation," managing director Scott Blume said.
"These gains have been offset by a six per cent decline in accommodation TTV (total transaction value)."
Mr Blume said work to update the company's information technology systems is continuing on budget and will be largely completed by the end of the fiscal year.
In its December guidance Wotif said the second half of the 2013/14 financial year would also be volatile, with soft retail conditions in Australia and New Zealand.
That volatility prevented it from providing full year earnings guidance, it said at the time.
Wotif will pay shareholders an interim, fully-franked, dividend of 10 cents per share, down from 11.5 cents in the corresponding period last year.
At 1115 shares were trading two cents higher at $2.78.
