New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Serko (SKO) has renewed its key partnership with Booking.com for a new five-year term, though on less favourable terms than its prior agreement. </li><li>This is a pivotal development for SKO with the strategic importance of the Booking.com relationship (responsible for nearly two-thirds of SKO's total revenue in FY24 and growing) unable to be understated.</li><li>The renewal, effective from the start of FY25 through to the end of FY29, sees the introduction of a tiered revenue-sharing system that decreases SKO's revenue share as the volume of room nights booked increases. </li></ul>

Serko (SKO) has renewed its key partnership with Booking.com for a new five-year term, though on less favourable terms than its prior agreement. This is a pivotal development for SKO with the strategic importance of the Booking.com relationship (responsible for nearly two-thirds of SKO's total revenue in FY24 and growing) unable to be understated.The renewal, effective from the start of FY25 through to the end of FY29, sees the introduction of a tiered revenue-sharing system that decreases SKO's revenue share as the volume of room nights booked increases. 

<ul><li>Serko's (SKO) growth ambitions in North America have been dealt a blow by the announcement that key rival Amex GBT is acquiring CWT.</li><li>The deal will cement Amex GBT as the dominant player in the North America corporate travel industry.</li><li>CWT is likely to offer Amex GBT's Neo online booking tool (OBT) in place of SKO's flagship Zeno tool that has been one of three ‘globally preferred tools’ since 2022. U</li></ul>

Serko's (SKO) growth ambitions in North America have been dealt a blow by the announcement that key rival Amex GBT is acquiring CWT.The deal will cement Amex GBT as the dominant player in the North America corporate travel industry.CWT is likely to offer Amex GBT's Neo online booking tool (OBT) in place of SKO's flagship Zeno tool that has been one of three ‘globally preferred tools’ since 2022. U

<ul><li>Conservative revenue guidance took some of the gloss off Serko's (SKO) otherwise strong 1H24 result.</li><li>Booking.com for Business (B4B) continues to exceed expectations, assisted by higher for longer hotel yields in Europe.</li><li>FY24 revenue guidance, while lifted as a result of the strong 1H24 result, reflected management's caution on the outlook for hotel yields and currency movements.</li></ul>

Conservative revenue guidance took some of the gloss off Serko's (SKO) otherwise strong 1H24 result.Booking.com for Business (B4B) continues to exceed expectations, assisted by higher for longer hotel yields in Europe.FY24 revenue guidance, while lifted as a result of the strong 1H24 result, reflected management's caution on the outlook for hotel yields and currency movements.

<ul><li>Strong top line performance with encouraging cost management: SKO experienced a strong top line finish to FY23, particularly from B4B</li><li>FY24 revenue growth to be driven by B4B, medium-term targets maintained: The strong FY23 revenue exit run-rate provides us confidence SKO will be able to reach the upper end of its FY24 revenue guidance range of NZ$63m–$70m.</li><li>CWT partnership and B4B global rollout provide further runway for growth: Travel management company CWT's partnership with B4B, expected to go live in June 2023, should drive an increase in customer acquisition for the B4B platform</li></ul>

Strong top line performance with encouraging cost management: SKO experienced a strong top line finish to FY23, particularly from B4BFY24 revenue growth to be driven by B4B, medium-term targets maintained: The strong FY23 revenue exit run-rate provides us confidence SKO will be able to reach the upper end of its FY24 revenue guidance range of NZ$63m–$70m.CWT partnership and B4B global rollout provide further runway for growth: Travel management company CWT's partnership with B4B, expected to go live in June 2023, should drive an increase in customer acquisition for the B4B platform

<ul><li>Australasian recovery charges on, businesses unfazed by high fares </li><li>European resilience positive, though medium-term uncertainty lingers</li><li>Cash buffer offers protection in the event of a downturn: SKO has a significant cash buffer available, with net cash of NZ$103m at 30 September 2022</li></ul>

Australasian recovery charges on, businesses unfazed by high fares European resilience positive, though medium-term uncertainty lingersCash buffer offers protection in the event of a downturn: SKO has a significant cash buffer available, with net cash of NZ$103m at 30 September 2022

New Zealand

Serko Ltd operates as an online corporate travel booking and expense management company.

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Serko Ltd (SKO NZ)

Serko - Re-Booking at a Lower Rate

Serko (SKO) has renewed its key partnership with Booking.com for a new five-year term, though on less favourable terms than its prior agreement.

Forsyth Barr

Serko - A Hit to the American Dream

Serko's (SKO) growth ambitions in North America have been dealt a blow by the announcement that key rival Amex GBT is acquiring CWT.

Forsyth Barr

Serko - Steady Ascent—1H24 Result

FY24 revenue guidance, while lifted as a result of the strong 1H24 result, reflected management's caution on the outlook for hotel yields and...

Forsyth Barr

Serko: FY23 — Flying High

Serko (SKO) reported a strong FY23 result, with revenue in excess of consensus expectations and company guidance, coupled with a better than...

Forsyth Barr

Serko: Steep Ascent, but Clouds Remain

The corporate travel recovery is in full swing, with strong bookings acknowledged in the usually slower Christmas and New Year period in Serko's...

Forsyth Barr

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