Serko Ltd (ASX: SKO) surges 30% on strong full-year results

Highlights:

• Serko Limited (ASX: SKO) declared its full-year results ended 31 March 2023.
• In the FY23 period, Serko’s total income increased 154% to NZ$48 million.
• SKO expects full-year total income to fall between NZ$63 million to NZ$70 million for FY24.

The leader in online travel booking and expense management for the business travel market, Serko Limited (ASX: SKO) rocketed 30.660% and was trading at AU$2.770 on Wednesday, 17 May 2023, at 3:25 pm AEST after it declared full-year results ended 31 March 2023.

Let’s now scan through the ASX technology stock- SKO’s annual results.

In its FY23 results, Serko’s total income increased 154% to NZ$48 million, signifying substantial development of Booking.com for business and managed travel recovery. This performance surpassed the updated FY23 guidance range of NZ$42 million-NZ$47 million.

Average revenue a booking rose 65% to NZ$9.56 from NZ$5.36 based on online bookings and was propelled by a greater revenue per completed room night and the elevated proportion of Booking.com for business bookings. Online bookings increased 93% to 4.1 million from 2.2 million. Net loss after tax stood at NZ$30.5 million, and EBITDAF decreased NZ$21.8 million.

The company’s balance sheet stayed robust with cash and short-term investments of NZ$87.7 million with zero debt. In May this year, travel management company and North American-headquartered Serko partner CWT notified inking a deal with Booking.com for business to back an expanded Booking.com for the business offering.  

The improvement in business travel in the ANZ region was robust, with online bookings increasing by 77%. In Australasia, average online bookings for the year were 89% of pre-Covid levels.  In the NZ region, volumes were 136% of pre-Covid levels and 82% in the Australian region.

In the North American region, the company continued to make progress and build its strategic position. Total spend rose 34% to NZ$83.3 million in FY23, reflecting planned investments and higher booking volumes.

On the outlook front, as reported, SKO has made substantial progress towards its goals in FY23. Business travel demand is tracking strongly, and the company is well-placed to deliver raised scale and operational efficiency.

SKO is committed to attaining positive cashflow for the financial year 2025 with appropriate cash reserves on hand. SKO has an aspiration of NZ$100 million in total income in FY25. SKO expects full-year total income to fall between NZ$63 million to NZ$70 million for FY24 based on current trends, including business and travel recovery and increased active customers in Booking.com for business.

SKO expects total spend to be between NZ$86 million-NZ$90 million based on its present investment plans and expected efficiency gains partly offset by higher volume-related costs.