2009 Media Releases

January 30, 2009

Deutsche Bank initiates coverage of Wotif.com

Deutsche Bank has initiated coverage of online accommodation booking provider Wotif.com Holdings Limited (ASX: WTF) with a Hold recommendation.

Research analyst Tim Plumbe initiated coverage with an A$3.60 twelve month price target.

Mr Plumbe said, “Wotif.com enjoys market leadership in the domestic online travel market with growth opportunities from increased exposure to the Asian markets. Its tested market leadership should position the company well to benefit from the continued change of accommodation booking moving online. We expect Australian online accommodation to increase from 13% of total Australian bookings to 24% by financial year 2012. Compared to 34% penetration in the more mature US market, we believe growth from structural change should help offset the impact of weaker economic conditions.”

Deutsche Bank estimates the full year impact of both the travel.com and Asia Web Direct (AWD) acquisitions combined with an above average growth from accommodation booking moving online to be partially offset by an economic slowdown. “We forecast moderating earnings growth in the second half of 2009 and 2010 and believe the weak economic conditions will result in lower levels of activity from both corporate and holiday travellers. While we expect the tourism sector to be impacted by the deteriorating global economic conditions and the weakening Australian dollar, we believe Wotif.com is best positioned in the sector,” Mr Plumbe said.

Wotif.com Holdings Limited is the leading provider of online accommodation booking services in Australasia. The company's operations cover almost 12,000 properties in 45 countries with its headquarters in Australia and field offices in New Zealand, UK, Singapore, Malaysia and Canada. The company generates more than one third of all online accommodation sales in Australia with Australia and New Zealand as its core markets.

For further information, please contact:

Camilla Anderson (02) 8258 2731


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