SEEK Reports 26% Dividend Increase and 5% Growth in Fund Valuation

Robust Market Position Despite Volume Pressures

SEEK Limited’s FY2025 half-year results reveal a company navigating a challenging employment services landscape with strategic agility. While job advertisement volumes declined notably, down 14% in ANZ and 14% across Asia, the company’s focus on yield growth and placement share has cushioned the impact. In Australia and New Zealand, SEEK saw a 4% revenue decline to A$416 million, yet yield improvements of 10% helped offset volume pressures. In Asia, despite a 3% revenue dip to A$120 million, a 19% increase in average yield, driven by variable pricing and premium product adoption, maintained revenue resilience.

Operational Efficiency and Platform Unification Pay Dividends

SEEK’s strategic completion of Platform Unification has delivered tangible benefits, enabling a 6% reduction in total expenditure and a 29% cut in capital expenditure. This leaner cost structure underpins improved operating leverage and supports ongoing product innovation, particularly in AI and trust initiatives. The company’s ability to reduce costs while investing in growth areas has translated into a significant increase in free cash flow, positioning SEEK well for sustained financial health despite a subdued revenue environment.

SEEK Growth Fund Strengthens Financial Position

The SEEK Growth Fund continues to be a valuable asset, with its portfolio valuation rising 5% this half, contributing to a 30% increase since inception. Notably, the Fund’s partial sell-down of its Employment Hero stake to KKR at a 19% premium to prior valuations has reinforced confidence in the Fund’s underlying assets. SEEK’s share of the proceeds, approximately A$79 million, is earmarked for debt reduction, enhancing the company’s balance sheet flexibility. The Fund’s ongoing performance, including a 9% look-through revenue growth, underscores the strength of SEEK’s investment strategy in the HR SaaS sector.

Dividend and Guidance Signal Confidence

Reflecting its robust cash flow and operational discipline, SEEK has increased its interim dividend by 26% to 24 cents per share, fully franked. This move signals management’s confidence in the company’s financial trajectory. SEEK’s FY2025 guidance remains stable, with expected revenue between A$1.06 billion and A$1.10 billion and total expenditure forecasted between A$750 million and A$770 million. Adjusted profit guidance has been updated to a range of A$135 million to A$160 million, reflecting a refined expenditure mix and ongoing market uncertainties, particularly in New Zealand and Hong Kong.

Strategic Outlook Amid Varied Market Conditions

CEO Ian Narev highlighted the uneven labour market conditions across SEEK’s APAC footprint, with stable job ad volumes in Australia contrasting with weaker demand in New Zealand and Hong Kong. The company’s strategic priorities, placements, yield, and operating leverage, have laid a solid foundation to weather these disparities. Continued innovation in product offerings and pricing models, including the rollout of a freemium model in select Asian markets, positions SEEK to capitalize on recovery phases and evolving customer needs.