Serko (SKO) H1 2025 earnings summary

Executive summary

• Announced acquisition of Sabre's GetThere business and a strategic partnership with Sabre to accelerate North American expansion, positioning as the number two online booking tool provider in North America by volume.

• Total income for the half was $42.7 million, up 18% year-over-year, 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, a significant turnaround from prior periods.

• Five-year partnership renewal with Booking.com and continued strong market success in Australasia, with plans to leverage partnerships for global scale.

Financial highlights

• Total income for the half was $42.7 million, up 18% year-over-year and 23% sequentially.

• Operating expenses rose 12% year-over-year 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.

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

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

Outlook and guidance

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

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

• Positive free cash flow expected for FY25 from the core business, but not when including the acquisition and accelerated investments.

• FY2030 total income aspiration set at NZD 250 million, reflecting growth trajectory and market opportunity.

• Acquisition of Get There L.P. is expected to expand the corporate travel management software offering and presence in the US.