Why the Serko (ASX:SKO) share price is racing 5% higher today

The Serko Ltd (ASX:SKO) share price is pushing higher on Monday following the release of a positive trading update this morning…
The post Why the Serko (ASX:SKO) share price is racing 5% higher today appeared first on The Motley Fool Australia. –

Corporate travel jet flying into sunset

In morning trade the Serko Ltd (ASX: SKO) share price is pushing higher following the release of an update.

At the time of writing, the travel technology company’s shares are up 5% to $5.91.

What did Serko announce?

This morning Serko provided the market with an update on its performance so far during the month of March.

According to the release, the company has experienced a meaningful uplift in transaction volumes this month.

As a result, Serko’s transactions are currently averaging 68% of the volumes recorded during the same period of March 2019, which was unaffected by the COVID-19 pandemic. This is at the high end of the company’s forecasts.

Serko’s CEO, Darrin Grafton, explained: “During March we have seen transaction volumes increase, with transactions month-to-date averaging 68% of the transaction volumes recorded for the same period in March 2019, which were unaffected by Covid-19. As previously announced, Serko has assumed in its forecasts that travel volumes will be transacting in the range of 40-70% of pre-Covid levels by March 2021, so we are pleased to see transactions currently tracking to the higher end of this range.”

Volumes at highest level during the pandemic

In addition to this, Serko advised that its daily transaction volumes are now reaching their highest rate since the pandemic started. This is being driven by improving trading conditions and the onboarding of new customers.

Mr Grafton said: “We are also seeing daily transaction volumes reaching their highest rate since Covid started materially impacting Serko’s travel volumes in mid-March 2020, and are pleased to note that some of this uplift is reflective of continued onboarding of new customers in Australasia despite the effects of Covid.”

“These positive trends follow ongoing volatility over the past few months as a result of further Covid-related travel restrictions, which saw transaction volumes range from 58% of prior year volumes for the month of December 2020, 40% for January 2021 and 51% for February 2021,” he added.

Pleasingly, the CEO is hopeful that these positive trends will continue, especially given that COVID-19 vaccines are now being rolled out.

“We continue to closely monitor travel trends and hope to see these positive trends continue with the vaccination programs underway in key markets and travel restrictions progressively lifting,” Mr Grafton concluded.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Serko (ASX:SKO) share price is racing 5% higher today appeared first on The Motley Fool Australia.

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