SEEK Boosts Cash Flow and Dividends Despite Revenue Dip in FY2025 H1
SEEK Limited’s FY2025 half-year results reveal a revenue dip and profit contraction, yet the company delivers a robust free cash flow surge and raises its interim dividend, underscoring resilience amid evolving market conditions.
- Revenue declined 4% to $536.2 million
- Adjusted profit fell 28% to $77 million
- Free cash flow surged 93% to $81.8 million
- Interim dividend increased by 26% to 24 cents per share
- Strong brand metrics and strategic progress across APAC
Financial Performance Overview
SEEK Limited has released its FY2025 half-year results, reporting a 4% decline in revenue to $536.2 million and a 28% fall in adjusted profit to $77 million. Despite these headwinds, the company showcased a remarkable 93% increase in free cash flow, reaching $81.8 million, driven by disciplined capital expenditure and improved cash conversion. This strong cash generation underpinned a 26% rise in the interim dividend to 24 cents per share, signaling confidence in the company’s financial health.
Market Dynamics and Operational Highlights
The results reflect a challenging environment for job ad volumes, with Australian paid ads down 12% and New Zealand down 26% year-on-year. However, SEEK’s candidate engagement metrics tell a more optimistic story, with record levels of candidate visits and increased applications per ad, supported by enhanced AI-driven matching and personalised experiences. In Asia, while paid ad volumes declined in most markets, the introduction of a freemium model in the Philippines drove a 30% uplift in total ads and a 2 percentage point increase in placement share.
Strategic Delivery and Product Innovation
SEEK’s strategic focus on growing placements, yield, and operating leverage is evident in its product delivery advancements. The company launched AI-assisted ad writing tools, conversational search capabilities, and expanded its trusted credential verification platform, SEEK Pass, across APAC. These innovations have contributed to double-digit yield growth, 10% in ANZ and 19% in Asia, offsetting volume declines and enhancing hirer ROI through new mid-tier ad products and upgrade pathways.
Cost Management and Capital Structure
SEEK successfully reduced total expenditure by 6%, with operating expenses flat and capital expenditure down 29%, reflecting the completion of its Platform Unification program. The company maintained a stable net leverage ratio of 2.3x and extended its debt maturity profile to an average tenor of 4.7 years, enhancing financial flexibility. Additionally, SEEK’s Growth Fund portfolio valuation rose 5% to $2.2 billion, supported by strong performances in HR SaaS investments and strategic capital calls.
Outlook and Market Positioning
Looking ahead, SEEK maintains its FY2025 revenue guidance midpoint, anticipating stabilisation in Australian job ad volumes and growth in Malaysia and emerging Asian markets, offset by softness in New Zealand and Hong Kong. The company has improved its total expenditure guidance, reflecting disciplined cost control and a shift in expenditure mix. SEEK’s dominant placement shares, 35.4% in Australia and 23.5% across Asia, combined with ongoing product innovation, position it well to capture a $2 billion revenue opportunity with margins exceeding 50% by FY2028.
Bottom Line?
SEEK’s half-year results highlight resilience through innovation and cash flow strength, but sustaining growth amid market volatility remains the next challenge.
Questions in the middle?
- How will SEEK sustain yield growth as job ad volumes face ongoing pressure?
- What impact will the freemium model expansion have on long-term revenue in Asia?
- How might evolving labour market conditions in New Zealand and Hong Kong affect SEEK’s regional strategy?
