Online booker WRI’s profits up 30%

WEB Reservations International (WRI), which owns several online accommodation booking websites, increased its profits by almost 30% in 2006.

The company, which is backed by U2 manager Paul McGuinness, recorded pre-tax profits of €16.6 million up from €12.8m in 2005.

WRI owns a number of online accommodation brands including Hostels.com, Hostelworld.com, Boo.com, Trav.com and Worldres.com. The company, which is based in Dublin, also provides accommodation through third parties, including Ryanair.

Turnover for the year rose from to €27.2m from €21.7m. According to accounts just filed at the Companies Registration Office, WRI still generates the bulk of its turnover in Europe.

Around €15.9m in turnover came from its European operations. This was up from €15m in 2006.

Turnover in Ireland was roughly flat at €1m but its turnover from other locations, including the US, rose from €5.7m in 2005 to €10.1m last year.

Despite increasing costs in 2006, pre-tax profit margin increased from 58.9% to just over 61%.

As a result of the rising profits last year shareholders’ funds, which showed a deficit of €8.32m in 2005, were a positive €6.3m at the end of 2006.

The company added 10 staff during the year, bringing the total to 45. The increase pushed up wages, which include directors’ salaries, to €2.3m from €1.6m.

Directors’ remuneration rose to €519,689 from €357,740. Three directors are listed: Ray Nolan, who set up the company in 1999, Tom Kennedy (another co-founder) and Feargal Mooney.

Four directors resigned from the company during the year: Patrick Holahan, Scott Collins, Brian Dunne and Mark Opzoomer.