Story image

Serko says full-year revenue to miss forecast, warns on 2016 sales

09 Mar 15

Serko, the online online travel booking business, warned annual revenue will miss its prospectus forecast by up to 6 percent as some billable services were pushed into the 2016 financial year. It cut its expectations for sales in 2016 due to the strength of the New Zealand dollar and delays to its mobile product.

The Auckland-based company said sales in the year ending March 31 will be between 4 percent and 6 percent below the $11 million forecast in its May 2014 prospectus due to delays in the timing of some services, and it has cut its forecast for first-half revenue in the 2016 financial year by 8 percent.

Serko was anticipating revenue of $8.3 million in the six months ending Sept. 30, and has trimmed its expectations due to the strength of the kiwi dollar against its Australian counterpart, and because of the delayed launch of its Serko Mobile product, it said.

The company said its 2015 annual operating loss is expected to be in line with its forecast, though it anticipates a smaller cash balance than the $5 million predicted in its offer document due the shortfall in revenue.

Last year Serko raised $17 million in new capital selling 15.5 million new shares at $1.10 a piece, via an initial public offering to fund its growth ambitions and repay debt. Founders Darrin Grafton and Bob Shaw sold a further $5 million worth of shares into the offer, retaining about a 20 percent stake and have agreed not to sell any more shares until two days after Serko announces its 2016 annual result.

The company will announce its 2015 annual result around May 22.

The shares last traded at $1.05, below last year's offer price.

Valve stops Steam Link hardware sales; promotes Android app instead
Valve announced that its supply of Steam Link hardware has sold out – and by the looks of it, it won’t be making any more.
Hands-on review: Spyro Reignited Trilogy brings back the PSOne icon
Spyro Reignited Trilogy is a great remake that features new school graphics with old fashioned style of gameplay.
Don't let criminals ruin your online shopping
It’s that time of year again. Not only have New Zealanders developed a bit of a taste for sales like black Friday and cyber Monday, the holiday season is well upon us.
Student app Niesh gets $1m funding windfall
“We’re a data driven company, and we’re using what we know to benefit students and the companies giving them rewards, discounts, and jobs,” explains co-founder Jae Yoo.  
NZ-grown fitness app draws on augmented reality
“I started working on creating an AR app over a year ago starting with just fitness. But as we moved on, it made sense to add in special features."
NZ's online merchants can now offer Google Pay
With Google Pay, customers will be able to speed through checkout with just a few clicks."
Hands-on review: Intel Core i7 8086K Limited Edition
Whilst I’ve seen commemorative coins and stamps, I’ve never seen a commemorative CPU. Intel’s Core i7 8086K is exactly that.
Hands-on review: Logitech G1 Pro Gaming Headphones and Mouse
For the serious gamer, this kit will have you happily spreading mayhem in glorious surround sound.