Source: Radio New Zealand
Serko handles corporate travel management and expenses, and operates the Booking.com for Business platform. Unsplash
Travel software company Serko posted a bigger bottom-line half-year loss driven by one-offs, but its income surged, thanks to its partnership with US giant Booking.com.
Key numbers for the six months ended September compared with a year ago:
- Net loss $9.5m vs $5.1m loss
- Revenue $61.8m vs $42.7m
- Operating expenses $65.1m vs $50.4m
- Adjusted earnings (EBITDAFI) $6.1m vs $1.2m
- Free cash flow $3.0 vs $1.3m
- No dividend
Serko said the increased loss was driven by foreign exchange losses and a non-cash accounting loss on the sale of its InterplX expense business.
It said momentum in its Booking.com for business drove the result, with completed room nights up 32 percent to 2.1 million, while active customers increased 40 percent from a year ago.
“Our performance reinforces Serko’s continued track record and ability to deliver high growth and cost discipline as we execute on our strategic focus areas,” chief executive Darrin Grafton said.
Grafton said the company was also looking at opportunities from artificial intelligence.
“Serko is well positioned to unlock the full value of AI as a core pillar of our strategy and product roadmap.”
The company was co-designing AI-powered capabilities with customers in the US, and said it had received positive engagement.
It said Australasian travel revenue was stable, with online bookings up 2 percent and improved margins.
Serko reaffirmed its full-year income guidance of $115-$123 million, compared to $90.5m in the year ended March 2024.
Forsyth Barr senior analyst James Lindsay said the result was “solid” with total income slightly ahead of expectations.
He noted Serko’s balance sheet remained strong with net cash of $65m.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
