Half Year 2025 Serko Ltd Earnings Call Transcript
Key Points
- Serko Ltd (ASX:SKO) announced a significant expansion into the North American market, supported by a partnership with Sabre and the acquisition of Sabre's GetThere.
- The company achieved strong market success in Australasia with a 5-year partnership renewal with Booking.com, a key growth driver.
- Serko Ltd (ASX:SKO) reported an 18% increase in total income for the first half of 2024, demonstrating strong revenue growth.
- The company achieved positive EBITDA and positive free cash flow in the first half of 2024, reflecting improved financial discipline.
- Serko Ltd (ASX:SKO) has a strong balance sheet with $82 million in cash and no debt, providing financial stability for future investments.
- The acquisition of GetThere is expected to be earnings dilutive in the first year, with total annual spend anticipated to be approximately $36 million.
- Serko Ltd (ASX:SKO) expects to incur transaction and integration costs related to the Sabre partnership and GetThere acquisition, totaling approximately NZD6 million.
- The company no longer expects to be cash flow positive for FY25 when including the acquisition and accelerated investments.
- There are risks to achieving FY25 goals, including timing of initiative delivery, currency movements, and geopolitical factors.
- The New Zealand revenue segment saw a reduction due to lower volumes, reflecting a weaker New Zealand economy.
Good day, everyone, and welcome to the Serko conference call. Today's conference is being recorded. (Operator Instructions) At this time, I would like to turn the conference over to your host, Darrin Grafton. Please go ahead.
Thank you for joining this morning. I'm joined today by our CFO, Shane Sampson; and also our Chief Revenue Officer, Liz Fraser. Liz joined Serko at the beginning of this year. Liz has extensive experience, including five years with Air New Zealand, where she was General Manager of Customer, and prior to that, Regional General Manager of the Americas based in the US. The first part of our presentation, we will use the investor presentation titled Building a Globally Competitive Business at Scale.
The second part will use the financial results presentation. We will then answer questions. I draw your attention to the important notice on slide 2, and I'll begin on slide 3. The size of the opportunity ahead of us is significant. Today's announcement
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
