Serko (SKO) H1 2025 earnings summary

Executive summary

• Announced a strategic North American expansion through a partnership with Sabre and the acquisition of GetThere, positioning as the number two online booking tool provider in the region by volume.

• Total income for the first half rose 18% year-over-year to $42.7 million, driven by strong growth in Booking.com for Business and managed travel segments.

• Net loss after tax improved 29% year-over-year to $5.1 million, reflecting operational leverage and efficiency gains.

• Achieved positive EBITDAF of $1.0 million and positive free cash flow of $1.3 million, marking a significant turnaround.

• Cash and short-term deposits stood at $82 million with no debt, maintaining a strong balance sheet.

Financial highlights

• Total income increased 18% to $42.7 million compared to the prior year; online bookings up 11% to 2.8 million.

• Operating expenses rose 12% to $50.6 million, mainly due to acquisition-related costs and lower capitalisation.

• Adjusted free cash flow was $2.3 million, a $5.8 million improvement year-over-year.

• Booking.com for Business completed room nights up 17% year-over-year to 1.6 million; active customers up to 187,000.

• Strong balance sheet with $82 million in cash and no debt.

Outlook and guidance

• FY25 total income guidance affirmed at $85–92 million, excluding expected revenue from the GetThere acquisition.

• Continued acceleration in Booking.com for Business revenues expected in the second half.

• Positive free cash flow forecast for FY25 from current business, but not when including acquisition and accelerated investments.

• Long-term aspiration for $250 million total income by FY30, supported by North American and Booking.com growth opportunities.