Serko Ltd. (SKO.NZ) Serko, the Australasian leader in online travel and expense management for business, announced its unaudited interim results for the six months to 30 September 2016, recording a 10 per cent increase in trading revenue from the previous corresponding six-month period ended 30 September 2015.
Serko Online transaction volumes increased by 17 per cent, resulting in a total income of $7.6m including grants for the first half of the 2017 financial year. Losses before tax reduced by 39% to $2.0m compared to $3.3m for the same period last year. With current revenue growth and effective cost controls in place, the company has line of sight to profitability in the next financial year.
“We continued to expand our customer base in the first of half of the year with a 17 per cent increase in bookings,” said Darrin Grafton, Serko chief executive officer.
“Organic growth came largely from our core base of enterprise customers in Australia, while we also introduced Serko to the Small and Medium business market with the launch of our new serko.travel application. It’s an exciting time, particularly as SME customers have the potential to more than double our current addressable market,” he said.
serko.travel is a completely new direct-to-market initiative offered in association with select TMC partners which targets smaller businesses and leverages the technology that underlies Serko’s Enterprise solution. Launched in July, serko.travel gives smaller businesses (less than 150 employees) many of the benefits enjoyed by larger enterprises such as cost control, approval and reporting features, while also being integrated with Xero’s accounting software.
“serko.travel attracts new customers through key partnerships with the likes of Xero, while Helloworld and Flight Centre provide expert advice if required. More than 800 small businesses have signed up so far, with further growth expected in the second half of the year,” said Grafton.
During the first half of the financial year Serko announced an agreement with Sabre Corporation to replace their proprietary online booking tool, Sabre Online, with a new tool based on Serko’s Enterprise booking platform, Serko Online. Sabre is a NASDAQ-listed travel technology company with a market capitalisation of over $US 7 billion.
“Looking ahead, Serko plans to continue its trajectory in growing revenues and pursing key partnership initiatives. The launch of our SME proposition will continue to extend our footprint across Australia and New Zealand,” said Grafton.
“We will also be supporting our Enterprise reseller base to ensure we drive core revenues, by delighting our TMC partners and assisting them to onboard their customers while adopting a broader range of Serko products,” he said.