Full Year 2025 Serko Ltd Earnings Call Transcript
Key Points
- Serko Ltd (ASX:SKO) achieved a 27% increase in total income to $90.5 million, driven by the integration of GetThere and growth in Booking.com 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.
- Booking.com 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 Booking.com 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.
Please stand by. We're about to begin. Good day everyone and welcome to the Serko 2025 full year results announcement. Today's conference is being recorded. At this time, I would like to turn the conference over to Darrin Grafton, Chief Executive Officer and Co-Founder. Please go ahead, sir.
Good morning. I'm Darrin Grafton, CEO of Serko. I'm joined by our CFO, Shane Sampson. Today, we'll cover, our FY25 has set us up to achieve our ambitions. I'll start with a summary of the 2025 financial year and then hand over to Shane to cover the financials in more detail. I'll then take you through our strategic priorities and outlook, and we'll close with your questions.
Turning to slide 5. The key points I want to make today are, first, we've achieved 20% growth in our pre-acquisition business with total income increasing to $85.7 million, consistent with our guidance. The inclusion of GetThere for just a quarter brings our total income growth to 27% and $90.5 million. Our
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