Serko (SKO) H1 2025 earnings summary

Executive summary

• Announced a strategic North American expansion via partnership with Sabre and acquisition of GetThere, positioning as the #2 online booking tool provider in the region by volume.

• Total income for 1H25 reached $42.7m, up 18% year-over-year and 23% sequentially, driven by Booking.com for Business and managed travel growth.

• Achieved positive EBITDAF of $1.0m and positive free cash flow of $1.3m, reflecting operational efficiency and cost control.

• Net loss after tax improved 29% year-over-year to $5.1m, with a strong balance sheet of $82m cash and no debt.

• The business travel market is rapidly growing, with the U.S. segment valued at NZD 400 billion and global market expected to reach NZD 3.3 trillion by 2028.

Financial highlights

• Total income for 1H25 was $42.7m, up 18% year-over-year; online bookings up 11% to 2.8m.

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

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

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

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

Outlook and guidance

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

• Continued acceleration in Booking.com for Business revenues expected in 2H25.

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

• Long-term aspiration for NZD 250 million total income by FY 2030, supported by North American and Booking.com growth.

• Risks include timing of initiatives, currency/ARPCRN movements, and macroeconomic/geopolitical factors.