Serko (SKO) H2 2025 earnings summary

Executive summary

• Achieved 27% year-over-year total income growth to NZD 90.5 million, driven by Booking.com for business and Australasian travel revenue.

• Pre-acquisition business generated positive free cash flow of NZD 7.4 million, supporting strategic investments and growth plans.

• Booking.com for business saw a 29% increase in active customers and completed room nights, reaching 3.3 million, with accelerated growth in the second half of FY25.

• Organisational efficiency improved, with a 1% reduction in headcount (excluding acquisition) and operational leverage achieved.

• Integration of GetThere and expansion in North America are key strategic priorities, with deliberate investment in data and AI capabilities.

Financial highlights

• Total income increased by NZD 19.3 million (27%) to NZD 90.5 million, with pre-acquisition income at NZD 85.7 million (up 20%).

• Operating expenses rose 20% to NZD 107.6 million, mainly due to GetThere costs and lower capitalization.

• EBITDAFI improved by NZD 4.3 million to positive NZD 2.8 million, up from a loss in the prior year.

• Free cash flow improved by NZD 5.2 million to -NZD 1.9 million, with pre-acquisition business generating NZD 7.4 million positive free cash flow.

• Cash and short-term deposits at NZD 61.4 million, with no debt; cash down due to GetThere acquisition.

Outlook and guidance

• FY26 total income expected between NZD 115 million and NZD 123 million, led by Booking.com for business.

• FY26 total spend forecasted at NZD 127 million–NZD 133 million, with CAPEX around NZD 10–12 million.

• North America revenue contribution to remain modest in FY26; aspiration for NZD 250 million total income by FY30 reaffirmed.

• Risks include macroeconomic/geopolitical factors and currency/ARPCRN movements.

• Expect to exceed 4.2 million completed room nights in FY26, triggering lower commission tiers but continued revenue growth.