Online travel group Wotif.com's half year profit has fallen by 18 per cent as it increased its marketing and upgraded IT.
Wotif made a net profit of $22.6 million in the six months to December 31, down from $27.5 million a year earlier.
The result was at the top end of guidance it issued as part of a downgrade in December, a profit warning that sent its shares to their lowest value since June 2008.
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 financial 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.
Its shares gained two cents to $2.78.