Serko Limited Analysis

Overview

Serko is a story of travel technology innovation. Founders Darrin Grafton and Bob Shaw started the Serko journey with Interactive Technologies Limited in 1994. ITL was a technology company designed to help travel agents solve a number of thorny mid-office and back office system challenges.

As the Internet took off and irrevocably changed the way users searched and booked travel, the business changed direction in order to ride the wave and in 2000 Serko was born. Since then the company has gone from strength to strength and with an unwavering commitment to simplifying and improving the travel experience, has gone on to become Australasia's preferred OBT.

Performance

The following information was extracted from Serko Limited's full year results, released on 28 May 2024:

• Total income of $71.2m, up 48%
• EBITDAF loss of $1.6 million, a 93% improvement
• Net loss after tax of $15.9 million, a 48% improvement
• Average monthly cash burn of $0.6 million, an 78% improvement
• FY25 guidance for total income of $85m – $92m
• Online Booking of 4.9 million, a 19% improvement
• Completed room nights on Booking for Business of 2.5 million, a 65% improvement

Serko Limited (NZX & ASX: SKO) today released its audited financial results for the year to 31 March 2024, with total income confirmed at $71.2 million – up 48% and above the middle of the guidance range revised upwards in November.

Serko Chair, Claudia Batten, said: “These strong results reflect the material progress we have made on our priorities, in an often complex and uncertain external environment. “Underpinning Serko’s progress has been a deliberate and sustained shift in how we operate. We are seeing benefits from strengthened leadership and expertise, a scalable operating model, and targeted investment to support innovation and growth. Today Serko is a more robust and dynamic business as we pursue the next phase of our strategy.

“Our renewed partnership with Booking.com for a further five years, as announced on 30 April 2024, is a major milestone – providing a strong foundation for future global scale. We are executing plans with Booking.com to deliver further growth through customer acquisition and activation, and expansion of the product offering.”