The Serko Ltd (ASX:SKO) share price will be on watch on Thursday after the release of a trading update this morning…
The post Serko (ASX:SKO) share price on watch after trading update appeared first on Motley Fool Australia. –
The Serko Ltd (ASX: SKO) share price will be on watch on Thursday after the release of an update this morning.
What did Serko announce?
This morning the online travel booking and expense management software provider released an update on current trading conditions.
According to the release, the company has been experiencing a gradual improvement in booking volumes following the easing of border restrictions in Australia over the last few weeks.
Serko’s CEO, Darrin Grafton, commented: “Transaction volumes increased to 44% of prior year volumes for the month of November (up from 35% of prior year volumes for the month of October). The past week has seen some daily transaction rates around 50% of prior year volumes.”
“Australian domestic travel increased to 33% of prior year volumes for the month of November (up from 26% of prior year volumes for the month of October),” he added.
Things have been even better across in New Zealand, where volumes are close to pre-COVID levels.
The CEO advised: “New Zealand domestic travel increased to 85% of prior year volumes for the month of November (up from 76% of prior year volumes for the month of October).”
What about the future?
While management acknowledges that future trading patterns remain unknown because of the pandemic, it appears optimistic on the future as travel restrictions ease.
In addition to this, the new agreement with travel booking giant Booking.com is expected to give its performance a boost.
Mr Grafton said: “During our recent earnings announcement we also advised that it was expected that new customers wishing to set-up a business account on the Booking.com website would be directed to the new Booking.com for Business platform powered by Zeno in select markets imminently.”
“We are pleased to confirm that new customers in select global (predominantly English-speaking) markets, are now being directed to the new Booking.com for Business platform powered by Zeno. The rate of new organic sign-ups remain uncertain and will be dependent on local travel restrictions and trends in each relevant market,” he explained.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended Serko Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.