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Travel software company Serko has delivered a reduced first-half loss as it increased revenue, turned cash flow positive and acquired a US business. The company reported a loss of $5.1 million for the six months ended September, compared to the previous year's $7.
2m loss , but notably made an operating surplus and was cash flow positive for the first time in its existence. "This is an important milestone for Serko, reflecting the disciplines in place to achieve material improvements in revenue without growing our underlying total spend," chief executive and founder Darrin Grafton said. "These outcomes reflect a sustained shift in how Serko operates and demonstrates our readiness to pursue new growth horizons.
" Serko handles corporate travel management and expenses, and operates the Booking.com for Business platform. Revenue was up 18 percent on a year ago with solid growth in Australia and Europe, while New Zealand and US revenue was marginally lower.
New acquisition, new ambition Serko displayed its growth ambitions with the announcement of a US$12m acquisition of a US business travel management platform, GetThere, from Nasdaq-listed Sabre Corp. Grafton said the acquisition was aimed at getting long-term growth and value in the North American market. "For some time, we have been closely considering how we scale in North America, expanding our existing operations in a NZ$400 billion business travel market.
This partnership and acquisition is a logical step for Serko, with targeted growth in the US managed travel market strengthening our position as a leader in business travel technology." He said Serko was acquiring extensive travel technology expertise and market knowledge, which would lift them to number two in the US business travel market. Grafton said Serko would finance the deal from its $82m in cash reserves.
In addition to the acquisition, Serko and Sabre would also partner in development and investment with revenue sharing on sales. Grafton said Serko aimed for $85m-$92m income for the current year, and has a target of $250m by 2030. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
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