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Serko lifts sales, cuts loss

NZ NewswireNZ Newswire 22/11/2016 Jonathan Underhill

Online travel booking company Serko has lifted first-half sales by 10 per cent and narrowed its net loss as costs fell.

The loss was about $2 million in the six months to the end of September from a loss of $3.4 million a year earlier, it said.

Sales rose to $7m from $6.4m , while operating expenses fell by $900,000.

The company first flagged its results on last month, while affirming it was on track to breaking even in the first quarter of 2018 and wouldn't need to seek more capital.

It said on Wednesday online bookings grew 17 per cent from a year earlier although the strong kiwi dollar against its Australian counterpart partly accounted for a more modest gain in revenue.

Serko shares last traded at 35 cents, having sold in its 2014 initial public offering at $1.10 apiece. The stock has declined 61 per cent this year.

Serko said partners of its Travel Management Co had advised of "a pipeline of new customers expected to onboard onto Serko Online in the second half of FY17". It expects to have a net cash balance of between $3m-$4m by the end of the March next year, giving it enough funds to reach break even early in the 2018 year.

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