SEEK’s Profit Dip and Sidekicker Reacquisition: Risks and Rewards Ahead

Financial Performance Overview

SEEK Limited reported a steady 1% increase in sales revenue to $1.097 billion for the fiscal year ended June 30, 2025, with net revenue also rising slightly to $1.090 billion. However, adjusted profit from continuing operations declined by 13% to $155.2 million, primarily due to lower EBITDA and increased amortisation expenses following the completion of its multi-year Platform Unification project in FY2024.

The company’s EBITDA margin narrowed slightly to 42%, reflecting ongoing investments in product innovation and technology. Operating expenses grew modestly by 3%, while capital expenditure fell 19% as the platform integration phase concluded.

Strategic Moves, Sidekicker Reacquisition and Growth Fund

In a notable strategic development, SEEK reacquired Sidekicker, a contingent labour platform, for a total consideration of $70.8 million. This move strengthens SEEK’s footprint in the growing contingent labour market across Australia and New Zealand, leveraging synergies with its core employment marketplaces. Sidekicker contributed $7.4 million in sales revenue and a small loss after tax in the final month of FY2025.

Meanwhile, SEEK’s 83.8% interest in the SEEK Growth Fund, a portfolio of high-growth human capital management businesses, saw its total portfolio value increase by 7% to $2.27 billion. Since inception, the Fund has delivered a 32% return on investment to SEEK, with distributions totaling $166.4 million.

Market Leadership and Product Innovation

SEEK maintained its leadership position in the Asia Pacific online employment marketplaces, with placement share in Australia and New Zealand rising and Asia reaching its highest level in recent history. The company achieved double-digit growth in paid job ad yield, driven by upgraded ad tiers, new product offerings, and the rollout of a freemium model in Asian markets.

Investment in artificial intelligence and data analytics continues to underpin SEEK’s product strategy, enabling superior job matching and personalised experiences for candidates and hirers. The unified platform has accelerated product releases and experimentation rates, enhancing operational efficiency and marketplace trust.

Sustainability and Governance Highlights

SEEK met its FY2025 target to reduce greenhouse gas emissions by 40% from a FY2022 baseline and has set revised targets aiming for a 50% reduction by FY2030 and net zero emissions by FY2050. The company also completed cybersecurity and privacy remediation programs and maintained a 50% gender diversity across its workforce.

The Board announced the appointment of Ernst & Young as SEEK’s external auditor from FY2027, subject to shareholder approval, succeeding PricewaterhouseCoopers who will audit FY2026.

Executive Remuneration and Shareholder Returns

Executive remuneration remains closely aligned with long-term shareholder returns. The FY2023 Wealth Sharing Plan lapsed due to the share price not meeting the threshold, reflecting SEEK’s sensitivity to market conditions. The company continues to emphasize equity-based incentives to promote sustainable growth and shareholder alignment.