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Yahoo
20-05-2025
- Business
- Yahoo
Serko Ltd (ASX:SKO) Full Year 2025 Earnings Call Highlights: Strong Income Growth and Strategic ...
Total Income: Increased by 27% to $90.5 million. Pre-Acquisition Business Income: Grew by 20% to $85.7 million. Free Cash Flow (Pre-Acquisition Business): Improved by $14.5 million to $7.4 million. Operating Expenses: Increased by 20% to $107.6 million. Total Spend: Increased by 10% to $92.7 million. EBITDAFI: Improved by $4.3 million to positive $2.8 million. Non-Cash Accounting Impairment: Reported at $5.1 million. Cash and Short-Term Deposits: $61.4 million with no debt. Completed Room Nights (CRNs): Grew by 29% to 3.3 million. Australasian Travel Revenue: Increased by 18%. FY26 Income Expectation: Between $115 million and $123 million. FY26 Total Spend Expectation: Between $127 million and $133 million. Warning! GuruFocus has detected 3 Warning Signs with ASX:SKO. Release Date: May 19, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Serko Ltd (ASX:SKO) achieved a 27% increase in total income to $90.5 million, driven by the integration of GetThere and growth in for business. The company generated $7.4 million in free cash flow from its pre-acquisition business, marking a significant improvement of $14.5 million year over year. for business saw a 29% year-over-year increase in active customers and completed room nights, indicating strong platform adoption. Serko Ltd (ASX:SKO) has a strong balance sheet with $61.4 million in cash and no debt, providing a solid foundation for future investments. The company is well-positioned to capture growth opportunities in the North American market, leveraging its strategic partnership with Sabre and the acquisition of GetThere. Operating expenses increased by 20% to $107.6 million, primarily due to lower capitalization and costs associated with the GetThere acquisition. Serko Ltd (ASX:SKO) reported a non-cash $5.1 million accounting impairment related to the GetThere acquisition, impacting financial results. The company experienced a temporary dip in conversion rates for for business in early Q4, although this was later addressed. Revenue contribution from the North American market is expected to remain modest in FY26, with some volume impact from US government policies. The integration of GetThere resulted in higher cash outflows for onboarding expenses, which are not expected to recur in FY26. Q: Could you talk about the growth in for business, particularly around customer acquisition and the source of customer growth? A: Darrin Grafton, CEO: The growth is driven by continuous experimentation in marketing messages and platform functionality. We are seeing strong top-of-the-funnel activity, with substantial improvements in customer acquisition processes. Shane Sampson, CFO: The customer mix remains consistent, with a significant proportion from Europe. We are seeing reduced churn and stronger new customer additions. Q: Can you provide a breakdown of the total spend between OpEx and CapEx for FY26? A: Shane Sampson, CFO: We estimate around $10 million for CapEx, with a conservative approach to capitalization. Most of the CapEx will be related to new platform development, estimated at $7 to $8 million. Total CapEx is expected to be around $10 to $12 million. Q: Could you clarify the income guidance for next year, especially regarding GetThere and the volume tier for for business? A: Shane Sampson, CFO: We expect to hit the volume tier in the first half of FY26, with modest impact on average revenue per completed room night. For GetThere, revenue is expected to be below $18 million but still in double-digit millions in New Zealand dollars. Q: What are your expectations for the ANZ business in terms of average revenue per booking (ARPB) and volume? A: Shane Sampson, CFO: We expect ARPB to be slightly below $6 due to a commercial opportunity that reduces costs and revenue. We anticipate relatively flat volume and revenue for ANZ, with no significant reductions observed despite industry commentary. Q: Can you discuss the integration and platform development for managed travel, and when do you expect the unified experience to be live? A: Darrin Grafton, CEO: We are focusing on platform spend and operational synergies. We aim to accelerate platform development with the right teams in place. Shane Sampson, CFO: We expect to spend $14 million on the platform, with flexibility to adjust as needed. The new managed travel experience is in development, but specific details and timelines are not disclosed at this time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
29-01-2025
- Business
- Yahoo
Former Booking.com Executive Matthew Gerrie Joins Serko as Chief Operating Officer
Industry veteran to drive operational excellence and scale global strategy AUCKLAND, New Zealand, January 29, 2025--(BUSINESS WIRE)--Serko Ltd. (NZX:SKO), a leader in online travel for business, today announced that Matthew Gerrie, PhD, has been appointed as COO, effective March 17th. In his role as COO, Matt will also assume the responsibilities of Chief Product Officer, working closely with the Board, CEO and Executive Team to translate Serko's strategic vision into product initiatives and business performance. His leadership will be instrumental in scaling Serko's global operations, driving growth and optimizing performance across international markets. "Our vision at Serko is to redefine the way businesses manage travel, and bringing Matt on board is a crucial step in that journey," said Darrin Grafton, CEO of Serko. "Matt's extensive experience at and his expertise in strategy, data-driven insights and global operating models make him the ideal leader to help us scale effectively and drive product innovation across our markets. We're thrilled to welcome him to the team and look forward to the impact he will make." Matt brings a wealth of experience to Serko, having spent more than eleven years at the flagship brand of Booking Holdings Inc., where he held senior roles including Vice President of Customer Insights and Senior Director of Marketing Science & Communication. Most recently, he served as Director of Strategy, Analytics in Global Strategy & Business Development at Booking Holdings Inc. "I'm delighted and excited to be joining Serko at this important stage of its growth journey," said Matt. "Through my experience working with Serko during its partnership with I've witnessed the company's innovative approach to solving complex challenges in business travel. The opportunity to collaborate with such a talented team to achieve scalable growth with data-driven decision-making is an exciting prospect that I am delighted to participate in and I look forward to contributing to Serko's continued global success and its mission to build the travel platform of the future." FURTHER INFORMATION About SerkoSerko is a leader in online business travel, with a suite of products to book and manage business trips including for Business, Zeno, and GetThere, that span market segments from SMEs to global multinationals. Listed on the New Zealand Stock Exchange Main Board (NZX:SKO) and Australian Securities Exchange (ASX:SKO), Serko is headquartered in New Zealand, with offices across the United States, India, China and Australia. For more information, visit View source version on Contacts Media enquiries Nick WhiteheadChief Marketing Officer+64 Sign in to access your portfolio
