Latest news with #Serko
Yahoo
22-05-2025
- Business
- Yahoo
Serko Limited (NZSE:SKO) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Shareholders might have noticed that Serko Limited (NZSE:SKO) filed its annual result this time last week. The early response was not positive, with shares down 6.6% to NZ$3.10 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at NZ$90m, statutory losses exploded to NZ$0.18 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've discovered 1 warning sign about Serko. View them for free. After the latest results, the seven analysts covering Serko are now predicting revenues of NZ$123.9m in 2026. If met, this would reflect a sizeable 37% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to NZ$0.097. Before this earnings announcement, the analysts had been modelling revenues of NZ$130.5m and losses of NZ$0.049 per share in 2026. While this year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. Check out our latest analysis for Serko The consensus price target fell 11% to NZ$3.88, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Serko at NZ$4.55 per share, while the most bearish prices it at NZ$3.17. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Serko'shistorical trends, as the 37% annualised revenue growth to the end of 2026 is roughly in line with the 39% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So it's pretty clear that Serko is forecast to grow substantially faster than its industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Serko. They also downgraded Serko's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Serko's future valuation. With that in mind, we wouldn't be too quick to come to a conclusion on Serko. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Serko analysts - going out to 2028, and you can see them free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with Serko . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Business Review
22-05-2025
- Business
- National Business Review
Quick Takes of the Week to May 23
Monday May 19 Gentrack's HY profit up 34.7% on continued expansion Gentrack has seen its half-year profit rise 34.7% to $7.2 million on a 9.8% increase in revenue. The NZX-listed utilities software provider said recurring revenues grew by 17%, but nonrecurring revenue was 12% lower than in the first half of FY24. It said it expected strong levels of non-recurring revenues going forward. Earnings before interest, tax, depreciation, and amortisation (ebitda) was 5.1% higher the prior corresponding period. It had cash of $70.7m as of 31 March – a $4m increase over the start of the year and up from $39.3m at the end of March 2024. The company expected revenue at or above $230m in FY25 and earnings margin to be above 12%. It remained "confident" of its mid-term guidance of growing revenue at a more than 15% compound annual growth rate and an ebitda margin of 15-20%, after expensing all development costs. Tuesday May 20 First half profit gain at Tower Insurance Listed insurance company Tower has recorded a first-half net profit rise after further improvements in business-as-usual claims and gross written premium growth. Its profit in the six months ended March 31 was $49.7m, up from $36m last year. That included provisions for ongoing customer remediation-related costs and an increase in Canterbury earthquake costs. Tower's 'large events' costs were $3m over the period after Dunedin flooding in October last year. April's Cyclone Tam will be recorded as a large event in the second half, with an estimated cost of $4m. Elsewhere, customer numbers grew to 312,000, up from 309,000 last year. Interim chief executive Paul Johnston said the results were positive as the company focused on 'robust' risk-based selection and pricing. 'This year we will expand risk-based pricing to include sea surge and landslide risks, helping our customers better understand their risks and how these factors impact their insurance pricing." Serko's product. Serko meets bottom end of annual income guidance Serko has reported a 27% increase in annual income to $90.5m, including $4.8m of income from the acquisition of GetThere, which settled in January. Excluding GetThere's revenue, Serko turned over $85.7m – only reaching the bottom end of its forecast income for the year, of between $85m and $92m. The NZX and ASX-listed travel booking software provider's net loss after tax was $22m, increased from $15.9m in FY24. Its FY25 result was driven by continued demand in its for Business (B4B) product, with completed room nights and active customers both increasing 29%. B4B saw completed room nights jump from 2.5 million to 3.3 million in the year, and active customers rise from 172,000 to 222,000. In its managed travel segment, Serko said that, in Australasia, online bookings were up 6% and average revenue per booking was up 12%. It said it expects total income of between $115m and $123m in FY26, and total spend in the range of $127m to $133m. Wednesday May 21 Napier Port pays out special dividend, ups forecast Napier Port will add a special dividend of 2.5 cents to its half-year payment of 4c to shareholders, up from the 3c paid last year. The NZX-listed port upped net profit after tax by 40.8% to $20.2 million for the six months to March, from $14.3m for the comparable period, after banking the final insurance settlement of $7.5m for damage from Cyclone Gabrielle. Container volumes also improved by 13.9% on Pan Pac's return to full pulp and paper operations, as well as an earlier apple picking season and increased transhipment activity, the port said. Chief executive Todd Dawson said the port expected to sustain healthy volumes and earnings on the back of continued strong food and fibre export demand, with the underlying result from operations now forecast to be in a range between $59m and $63m, assuming a "continuation of current operating conditions". The payment of the interim and special dividends will be on June 26, to those shareholders registered on June 13. PaySauce stays in profit as customer numbers rise NZX-listed payroll software provider PaySauce has reported its second consecutive annual profit before tax, up $270,000 on last year, to $460,000. The company's after-tax profit dipped $550,000 to $680,000, due in part to $320,000 recognised as a deferred tax asset for prior losses carried forward. Earnings before tax, depreciation and amortisation (ebtda) grew $290,000 to $1.35 million, as total operating revenue rose 17% to $9m, from $7.7m in the prior year. Total customer numbers were up 11% at year-end compared with March 2024. Processing fee income was up 18% due to the increase in customers and average fee per user. Interest income grew just 6% due to easing wholesale interest rates over the year, particularly in the fourth quarter ending in March. Average revenue per user fell 5% to $86 at the end of the period, with the increase in processing fee income diluted by the fall in interest rate income. Smith & Caughey's to close The iconic Smith & Caughey's building. Auckland retailer Smith & Caughey's will shut entirely, causing 98 job losses. Smith & Caughey's acting chief executive, Matt Harray, said, "Every attempt has been made to achieve this and every feasible option investigated; no stone left unturned. However, it's sadly clear it is no longer viable for us to keep the doors open." The department store with roots back to 1880 downsized its Queen St operations earlier this year, and closed its Newmarket store in September 2024. Harray said it was hoped the changes would result in an improved financial position for the company. "Unfortunately, this has not been the case." All operations will close by the end of July, with the online store closed from the end of May. Thursday May 22 Zespri revenue passes $5 billion Zespri revenue has surpassed $5 billion in the 2024/2025 season. Global operating revenue for the kiwifruit marketer tallied $5.14b, up 22% from $4.21b during the previous corresponding season. Net profit after tax fell 10.4% to $155.2 million from $173.3m. Zespri sold a record 220.9 million trays of kiwifruit in 2024/25, up from 164.2 million trays in 2023/24. Zespri chief executive Jason Te Brake said, '2024/25 was a really positive year for the industry and we're excited to build on this momentum as we progress further into our 2025/26 season." Blis Technologies optimistic after positive result NZX-listed Blis Technologies, a maker of probiotic dietary supplements, has reported net profit up 30% to $838,000 for the year to March. Revenue rose 9% to $13.2 million. In a statement to the NZX, the company said it was optimistic about the coming year. 'While macroeconomic conditions remain mixed, demand for science-backed probiotics continues to grow,' it said. The company said a European customer had filed patent applications in September 2024 that it believed contained confidential Blis information and it was in talks to resolve the dispute. The annual report also noted supplies of fermented probiotic ingredients from Fonterra were becoming restricted and increasing in price, so Blis was seeking another supplier. FMA warns about managed investment scheme The Financial Markets Authority has issued a warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL). FMA response and enforcement executive director Louise Unger said, 'We understand that Mr Vaughan, the sole director and shareholder of formerly registered company CPL, has offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding an MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.' Vaughan also told his investors in a newsletter that he had applied for an MIS manager's licence, and that it was being reviewed by the FMA. Unger confirmed neither Vaughan nor CPL had ever applied to the FMA for any form of market services licence. The FMA is concerned "investors are likely to have experienced significant detriment" due to Vaughan's conduct, and urged those affected to contact them. Savor Group's Bivacco restaurant. Savor Group reports reduced revenue Savor Group revenue fell 8% to $56.6 million from $62m, for the year ending in March. The Auckland hospitality group reported $7.3m in operating earnings, down from an ebitda of $8.8m, and a net loss after tax of $1.2m, down from an after-tax net profit of $700,000 in the year prior. The net loss was largely attributed to a one-time accounting write-off from its discontinued Seafarers venue. Operating cash flow rose to $7.1m for the year, up from $6.4m last year. Savor chief executive Lucien Law said, "With the market stabilising and our new bar and entertainment venue in Britomart under construction, we're looking forward to growth again.' The trading environment remained uncertain with persistent economic pressures, the company said. However, it hoped gradual relief in cost-of-living pressures would benefit the business. "Our strengthened balance sheet, with improved cash reserves and declining leverage, provides flexibility to navigate challenges or pursue growth." WasteCo lands $40m contract, resumes trading NZX-listed WasteCo says it has landed a nine-year, $40 million contract with the Ashburton District Council to deliver waste management services to more than 12,000 households. The contract, which includes kerbside rubbish and recycling for both the council and 21 mid-Canterbury schools, has the option of a nine-year extension. The company placed itself in a trading halt this morning ahead of the announcement and resumed trading after 4pm. The contract, which will support 23 full-time employees, will start on September 1. WasteCo shares remained at 2 cents per share in late afternoon trading. Paul Silk appointed interim chief for new ferry company Paul Silk has been appointed interim chief executive of the company that will procure two new ferries for the Government. Silk was most recently acting chief executive at Christchurch City Holdings, the wholly owned investment arm of Christchurch City Council. Ferry Holdings chair Chris Mackenzie said Silk's experience managing public-owned infrastructure, as well as capital and risk management in financial markets, made him the 'ideal candidate' to lead the company during its establishment phase. The appointment is effective from May 26. Silk will be responsible for overseeing the commercial negotiations to procure the two ferries, as well as port infrastructure agreements with CentrePort in Wellington and Port Marlborough. The agreements are due to be completed by the end of this year, by which time the company hopes to have a permanent chief executive.
National Business Review
20-05-2025
- Business
- National Business Review
Serko aware US demand may falter on Trump yet sees opportunities
Serko expects a modest revenue contribution from the North American market in this financial year, but is still bullish on the long term opportunity despite signals that travel demand may drop. In announcing its annual results this morning, the NZX and ASX-listed travel booking software provider
RNZ News
19-05-2025
- Business
- RNZ News
Serko lifts income, bottom-line loss increases
Serko handles corporate travel management and expenses, and operates the for Business platform. Photo: Unsplash Travel software company Serko has lifted its income thanks to its partnership with global giant while its bottom-line loss deepened largely due to one-offs. Key numbers for the 12 months ended March compared with a year ago: Serko said the result was driven by ongoing demand and growth from for Business, with completed room nights and active customers both increasing 29 percent. Serko reported higher forward exchange contract losses and a $5.4 million non-cash accounting write-down, driving down its bottom-line. The company said its Australasian business was "solid", and included $4.8m of income from the acquisition of online booking platform GetThere. "Our pre-acquisition business generated positive free cash flow for FY25 of $7.4m, an improvement of $14.5m," chief executive Darrin Grafton said. "Serko is pursuing new growth, supported by targeted investment in its platform and North American expansion," he said. "We are in a strong position to do this, with continued income growth, cost discipline and an increase in our capability, including in data and AI." Serko forecast full-year income in 2026 to be between $115m to $123m, driven by its for Business earnings. It expected total spending to be between $127m to $133m. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
National Business Review
24-04-2025
- Business
- National Business Review
Quick Takes of the Week to April 25
Tuesday April 22 IkeGPS sees 19% annual revenue rise, guides more strong increases Listed tech company IkeGPS has reported a 19% increase in recognised revenue for the year to the end of March 2025, with $6.5 million of the $25.2m total coming in its fourth quarter. The company, which provides software for analysing physical infrastructure such as electricity and phone lines, disclosed subscription revenue of $14.4m, up 34% year on year, transaction revenue of NZ$7.6m, 3% up, and hardware and other services revenue of $3.2m, a rise of 5%. Gross margin was up 37% over the same period at 69%, up from 60% in the previous comparable period, driven by revenue mix continuing to shift to high-margin subscription software products. Total cash and net receivables grew by $1.8m in the fourth quarter to $15.4m at the end of the March, comprised of $10.3m in cash, $5.1m in net receivables, and no debt. The company said it expects annual recurring revenue to continue to increase very strongly in FY26 "based on contracts in place and broader momentum". Serko attracts Mint Asset Management stake boost Mint Asset Management has boosted its stake in NZX and ASX-listed travel booking software company Serko by just over two million shares, making it now a substantial holder of SKO stock. A stock market filing this morning showed Mint acquired nearly $7.3 million worth of shares between December 16, 2024 and April 16, 2025, giving it 5.04% of the company's stock, or just over 6.2 million shares. The average price paid for the shares was about $3.61. The value of Serko's shares closed last Thursday at $3.32, having been as high as $4 at the start of April. Northland Regional Council backs Northport owner privatisation Northport. Northland Regional Council has backed a bid to take the NZX-listed owner of Northport – Marsden Maritime Holdings – private. In February, Marsden's board recommended a deal that would buy out minority shareholders and take the company – which owns half of Northport, more than 150ha of land adjacent to it, and the Marsden Cove Marina – private. Northport is a private company half-owned by Marsden and NZX-listed Port of Tauranga. Under the deal, however, Northport would become a wholly owned subsidiary of Marsden, which would delist from the NZX. In turn, Marsden would be 50% owned by Port of Tauranga, 43% owned by Northland Regional Council, and 7% owned by Crown-owned investment company Tupu Tonu. The scheme of arrangement is offering $5.60 a share in cash. The deal was subject to a number of conditions, including the support of NRC following community consultation. That support was confirmed on Tuesday. A vote on the deal is expected to be held on May 29. Chatham Rock goes back to drawing board on Korella sale Minerals exploration minnow Chatham Rock Phosphate has disclosed a further hiccup in the proposed sale of phosphate interests in Queensland, which would have provided its first source of income. After announcing in January it had agreed to sell mining and exploration leases dubbed Korella North and Korella South, it said in February the period of exclusive due diligence had been extended from March 31 to June 30. On Tuesday, it said the proposed buyer – a group of Australian investors informally known as Marshall Group – had relinquished their exclusivity so as to pursue 'complementary opportunities'. Chatham Rock Phosphate said other interested parties had now re-engaged with the potential purchase. The assets comprise one mining lease and three exploration leases. Wednesday April 23 Data processing snag delays Stats NZ release Statistics New Zealand has cancelled the upcoming release of the March-quarter Household living-costs price indexes (HLPI) on May 1 because of data processing issues. It said new consumer price weights were added to the monthly Selected Price Indexes and the quarterly Consumers Price Index but updating and applying the weights to the HLPI was more 'complicated'. 'Our economic data remains reliable, fit-for-purpose, and within international best practice. The HLPI is used as an input for one of the measures of child poverty statistics. 'A key part of our solution will be to ensure we deliver on our obligations to measure child poverty,' Stats NZ said. Thursday April 24 NZTA signs off on first stage of $2.1b Mill Road, after 16 years It's taken 16 years but the NZ Transport Agency (NZTA) has now earmarked $91.1m for design and consent of stage one of south Auckland's Mill Road, a process that started with community engagement during 2009. Construction is expected to start next year on the upgraded four-lane corridor, to include a westbound bus lane at the northern end, new intersections, and two new bridges. The full upgrade to the road of 'national significance' – aimed at providing an alternative to SH1 into Drury – has been costed at between $1.75b and $2.05b and is expected to be completed by 2033. Minister announces changes to industry training Penny Simmonds. The coalition Government is giving more power to industries over how they train their apprentices and trainees. Vocational Education Minister Penny Simmonds said workplace training had become overly centralised through Te Pūkenga and often was disconnected from the reality of the jobs apprentices were working towards. The Government would introduce a new industry-led model for work-based learning to come into effect next year. 'This means vocational education and training providers will be able to manage all aspects of an apprenticeship or traineeship at an industry level, rather than taking direction from a centralised behemoth,' Simmonds said. From January 1, new industry skills boards would set training standards, endorse programmes, and moderate assessments. Apprentices and trainees with Te Pūkenga would move to the new boards over the following two years, while new students would enroll directly with new work-based learning private providers, polytechnics, or Wānanga, she said. No more dirty laundry at Downer EDI Downer EDI says it has washed its hands of its 29.9% interest in its Australian laundries business to a Macquarie Asset-managed private equity fund for A$64m ($68.4m). The ASX-listed infrastructure group had sold a 70.1% interest in Linen Services Australia, formerly Spotless Laundries, to Adamantem Fund II for A$155m in December 2020. In a statement on the NZX, Downer said the sale completes its exit from the laundries business, operating as Linen Services Australia and Ensign in Australia and as Taylors Laundries in NZ. Adamantem has also sold its stake to the Macquarie fund. Downer chief executive Peter Tompkins said the sale aligned with the firm's strategic focus of "portfolio simplification", strengthened its balance sheet, and provided options for other capital allocations. Simon Bridges, Marama Royal head to Eden Park Sport and Recreation Minister Mark Mitchell says the board appointments of former Cabinet Minister and Auckland Business Chamber chief executive Simon Bridges and Ngāti Whātua Ōrākei trust chair Marama Royal to the Eden Park Trust will add "fresh perspectives" in respect of the park's future. Bridges and Royal replace outgoing members Victoria Toon and Renata Blair. Mitchell reappointed current trust chair Kereyn Smith and Bill Birnie as members of the board through to 2028. The Crown has the capacity to appoint up to five of the trust's nine trustees, with two each appointed by Auckland Rugby and Auckland Cricket. Eden Park rolled out its vision for its $550m expansion plans, including a retractable roof, earlier this month.
