Serko’s Net Loss Widens Amid Expansion and One-Off Costs—What’s Next?

Strong Financial Performance and Strategic Expansion

Serko Limited (ASX & NZX: SKO) has delivered a compelling financial performance for the year ended 31 March 2025, reporting a 27% increase in total income to NZD 90.5 million. This growth was primarily driven by the continued momentum of its Booking.com for Business platform, which saw a 29% rise in both completed room nights and active customers. The acquisition of GetThere, a US-based travel management platform, contributed NZD 4.8 million in income and marks a significant step in Serko's North American expansion strategy.

Despite an increase in net loss after tax to NZD 22 million, largely due to one-off costs and a non-cash impairment related to the GetThere acquisition, Serko improved its EBITDAFI to NZD 2.8 million, reflecting disciplined cost management and operational efficiency. The pre-acquisition business generated positive free cash flow of NZD 7.4 million, an improvement of NZD 14.5 million from the previous year, underscoring the underlying strength of Serko's core operations.

Operational Highlights and Product Innovation

Serko's Australasian managed travel business also performed solidly, with online bookings increasing by 6% and average revenue per booking rising 12%. The company continued to enhance its Zeno platform, integrating learnings from Booking.com for Business to reduce friction and improve customer satisfaction. The GetThere team has been successfully onboarded, with ongoing engagement to shape future market offerings.

Investment in technology and talent remains a priority, with Serko attracting senior leaders from global tech firms such as Airbnb, Booking.com, and Uber for Business. The company has embedded data and AI capabilities across its operations, with 99% of employees completing AI training pathways, positioning Serko at the forefront of innovation in business travel technology.

Sustainability and ESG Commitments

Serko has made significant strides in its environmental, social, and governance (ESG) agenda. The company achieved a 56% reduction in emissions intensity (tCO2e per NZD million of total income) against its FY23 baseline, driven by efficiency improvements in its hosting infrastructure and operational practices. Serko's Mission Zero sustainability module, which helps customers make environmentally conscious travel choices, won the 2025 B2B Travel Innovation of the Year award.

On the social front, Serko reported an 86% overall employee engagement score, with notable improvements in inclusion and diversity metrics. The company expanded its global workforce through the GetThere acquisition and invested in community initiatives, contributing volunteer hours and financial support across multiple regions.

Governance and Board Succession

Governance remains a cornerstone of Serko's strategy, with the Board overseeing the renewal of the five-year Booking.com partnership and the North American expansion. The company strengthened its executive leadership team with key hires in technology and operations. Notably, independent director Clyde McConaghy announced his retirement, with plans underway to appoint a new independent director to maintain a balanced and skilled Board.

Serko also enhanced its risk management framework, focusing on cyber security, data governance, and responsible AI use. The company continues to engage proactively with shareholders and stakeholders, emphasizing transparency and alignment with long-term value creation.

Outlook

Looking ahead to FY26, Serko projects total income between NZD 115 million and NZD 123 million, supported by the growth trajectory of Booking.com for Business. Total spend is expected to range from NZD 127 million to NZD 133 million, reflecting continued investment in platform development and market expansion. While revenue from North America will remain modest in the near term, Serko is confident in the long-term opportunity in this key market. Risks include macroeconomic and geopolitical factors, currency fluctuations, and changes in average revenue per completed room night.