Sharechat Logo

Serko confirms 10% gain in first-half sales, net loss narrows as costs fall

Wednesday 23rd November 2016

Text too small?

Serko, the online travel booking company, confirmed a 10 percent gain in first-half sales and narrowed its net loss as costs fell.

The loss was about $2 million in the six months ended Sept. 30 from a loss of $3.4 million a year earlier, the Auckland-based company said in a statement. Sales rose to $7 million from $6.4 million, while operating expenses fell to $9.7 million from $10.6 million.

The company first flagged its results on Oct. 26, while affirming it was on track to breaking even in the first quarter of 2018 and wouldn't need to seek more capital. Today it said online bookings grew 17 percent from a year earlier although the strong kiwi dollar against its Australian counterpart partly accounted for a more modest gain in revenue.

Serko shares last traded at 35 cents, having sold in its 2014 initial public offering at $1.10 apiece. The stock has declined 61 percent this year.

Darrin Grafton and Bob Shaw each own about 17 percent of the company, which grew out of Interactive Technologies, a business they set up in 1994 before creating its main Serko Online product in 2000. This later became part of Gulliver’s Travel Group, which listed on the ASX and NZX before being acquired by Australia’s S8 in 2006, which was then swallowed up by MFS. Shaw and Grafton purchased the Serko assets from MFS in 2007. Chairman Simon Botherway owns about 2.8 percent of Serko.

Serko said partners of its Travel Management Co had advised of  "a pipeline of new customers expected to onboard onto Serko Online in the second half of FY17". It expects to have a net cash balance of between $3 million and $4 million at March 31 next year, giving it enough funds to reach breakeven early in the 2018 year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls with Aussie after Westpac's RBA rate cut call
Intuit juggernaut grows QuickBooks subscribers but momentum slows
Reaction to Budget rules relaxation shows balance 'about right', says Ardern
Augusta lifts net profit six fold as investors flock into new funds
Annual exports to China top $15 billion for first time
Gentrack posts $8.7M loss on CA Plus write-down
Westpac says RBNZ capital proposals would add $6,000 p.a. to an Auckland mortgage
Cavalier says market conditions still challenging
Ryman hikes dividend as annual earnings grow on wider development margin
24th May 2019 Morning Report

IRG See IRG research reports