Serko confirms 10% gain in first-half sales, net loss narrows as costs fall
The loss was about $2 million in the six months ended September 30 from a loss of $3.4 million a year earlier.
Serko, the online travel booking company, confirmed a 10% gain in first-half sales and narrowed its net loss as costs fell.
The loss was about $2 million in the six months ended September 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 October 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% 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% this year.
Darrin Grafton and Bob Shaw each own about 17% 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. Messrs Shaw and Grafton bought the Serko assets from MFS in 2007. Chairman Simon Botherway owns about 2.8% of Serko.
Serko said partners of its Travel Management Co had advised of "a pipeline of new customers expected to onboard on to Serko Online in the second half of the 2017 financial year." It expects to have a net cash balance of between $3-4 million at March 31 next year, giving it enough funds to reach breakeven early in the 2018 year.
(BusinessDesk)
Jonathan Underhill
Wed, 23 Nov 2016
Wed, 23 Nov 2016
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Serko confirms 10% gain in first-half sales, net loss narrows as costs fall
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