Serko FY16 Full Year Results Announcement

Serko FY16 Full Year Results Announcement

25 May, 2016 – Serko Ltd. (SKO.NZ) Serko, the Australasian leader in online travel booking for business, today announced its full-year audited financial results for the year ended 31 March 2016, recording total revenue of $13.1 million and 27% year-on-year growth.

Recurring product revenues from Serko Online and Serko Incharge increased by 47% to $12.2m in the year. The majority of the company’s revenue growth however came from transactional revenue derived from online travel bookings, which increased by 54% in volume in the period.

“The 54% increase in online booking volumes during the period points to our success in capturing a greater share of the Australasian corporate travel market”, said Darrin Grafton, Serko CEO.

“During the course of the year we expanded our relationship with some of the largest global and regional Travel Management Companies (TMCs) in the region as well as introducing a number of new TMC resellers to Serko to increase our total addressable market. In aggregate, Serko Online is now transacting travel bookings with a total value of close to $5 billion on an annualised basis.

“The acquisition of Arnold Travel Technology completed in May 2015 also importantly allowed us to accelerate the acquisition and migration of customers from a rival platform and to enter into a valuable strategic relationship with Expedia Inc.”

Serko’s net loss before tax reduced from the previous year by $0.6m to $5.9m, attributable to limiting the growth in the total expense base to a total of $20.7m, which was up 14.8% compared to the previous year. The investment in R&D in FY16 amounted to $6.3m, an increase of $0.6m from the previous year.

“FY16 has seen the business concentrate on executing its strategy of increasing average revenue per transaction, whilst growing the size of our customer base. All the necessary products, innovations and enhancements are now in place and we expect these to start contributing to revenue growth in FY17,” said Grafton.

“We have also focused our resources on developing the new SME (Small to Medium Enterprise) platform, which is expected to generate revenues through FY17 as the proposition gains awareness and traction with end-user customers.

Moving into the new financial year, Serko will use a recent capital raise of $8.1m to boost funding of business operations, notably the launch of its new SME offering in Australia and New Zealand.

“The year ahead promises to be an exciting time for us, as we continue to focus on areas that create value for our shareholders. We believe our SME proposition in particular is a powerful one that allows us to create a new, emerging and leveraged business that provides the path to extend market reach and recurring revenue.”

“The next financial year FY17 will be an important one for Serko and we look forward to working with all our stakeholders to deliver value for our customers, partners and shareholders”, continued Grafton.

ENDS

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