Serko signs five-year partnership renewal with Booking.com
• Significant milestone for Serko’s growth ambitions
• Five-year term from April 2024 to March 2029
• Serko provides unaudited FY24 trading update ahead of audited full-year results
What is happening with the share price??? Big reversal after the big gains yesterday from the bookings.com announcement.
Market Close Report guy from Salt quoted
Goodson said Serko had a relief rally, but investors took a second look at the agreement with Booking.com and found a sharp price abatement (to Serko) when bookings reached a certain threshold.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Goodson said Serko had a relief rally, but investors took a second look at the agreement with Booking.com and found a sharp price abatement (to Serko) when bookings reached a certain threshold.
“Revised revenue share model with volume tiers
Based on the current ratio of CRNs to completed bookings we do not anticipate a meaningful impact on the current commission rate of 50% below 4.3 million CRNs per year. The blended commission rate would be approximately 40% at 6 million CRNs per year and approximately 32% at 8.6 million CRNs per year. At the lowest commission tier the commission rate would still be expected to produce an acceptable gross margin on incremental CRNs.”
Not sure I share the same concerns, considering how good things would be for Serko if they get to those top tiers.
For emphasis, Serko had 1.3m CRNs via booking.com in its first half (annualize to 2.6m CRNs)
Originally Posted by winner69
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