Travel Technology developer Serko Limited (ASX: SKO) and Carlson Wagonlit Travel have agreed to extend the CWT reseller agreement in order to make Zeno, Serko’s Travel and Expense platform, available to the United States and Canada clients as part of the CWT preferred supplier program for its small to medium enterprise market customers.
The agreement marks the extension of the current CWT reseller agreement for Zeno in Australia & New Zealand.
Darrin Grafton, Serko CEO stated that Serko had established the long-standing relations with Carlson Wagonlit Travel, one of the largest global entities in the corporate travel work of Australasian market.
The company informed that Zeno is expected to become one of the most preferred book CWT tools for the SMEs markets in North America market, including a self on-boarding platform that the configuration and rollout of Zeno simpler.
Serko told that it will integrate Carlson Wagonlit Travel’s RoomIt content and platform into Zeno’s hotel supply platform. The company told that while the CWT pipeline opportunity is potentially significant, the onboarding of customers and the commencement of transactional revenue will take some time. Moreover, the company intends to undertake further development work for Zeno configuration in order to comply with CWT’s marketing, operational and ongoing customer servicing requirements.
However, Serko clarified that it does not expects any material impact on the outlook of its current financial year due to the development work requirement. Following development work, the company expects to undertake limited rollout for initial customers which is not anticipated to be completed by mid-2019.
The company is expected to provide guidance for Fiscal 2020 on the release of its Fiscal 2019 results due in May 2019.
Serko Limited is a Software as a Service (SaaS) provider that offers a technology solution for corporate travel. Through two its phone applications, Serko Online and Serko Expense, the company provides a cloud-based platform for online booking and other travel management services to its corporate clients.
On the financial front, the company reported the Net tangible assets per security of NZD25.61 cents for the six months ended 30 September 2018, compared to NZD7.79 cents in the previous corresponding period. The company posted the top line growth of 25.1% to NZ$11.35 million for the half year ended 30 September 2018. But the net profit attributable to security holders was down by 16% to NZ$920,000 for the same period compared to 6 months ended 30 September 2017.
The stock price surged up by 1.684% to close at $3.020 on 8 February 2019. Today, (11 February 2019) SKO is trading flat at $3.020 (as at 1:39 PM) with Price to Earnings ratio of 262.610x and a market capitalization of $244.39 million.
Since its listing on the Australian Securities Exchange in June 2018, SKO edged up by 6.71% including a surge of 21.29% over the last month.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.