Zhaopin Woes Drive SEEK’s Half-Year Loss Despite Strong Market Gains

Robust Revenue Growth Amid Strategic Transformation

SEEK Limited’s half-year results for the period ending 31 December 2025 reveal a company in the midst of significant operational progress and strategic realignment. The online employment services giant reported a 21% jump in sales revenue to $646.6 million, driven by strong yield growth and the reacquisition of Sidekicker, a contingent labour platform integrated in May 2025. Excluding Sidekicker, revenue still grew a healthy 11%, underscoring underlying marketplace strength.

SEEK’s adjusted profit from continuing operations rose 35% to $104.1 million, reflecting improved operating leverage and disciplined cost management. EBITDA grew 19%, outpacing total expenditure increases, which were largely invested in product, technology, and AI capabilities to enhance SEEK’s marketplace leadership across Australia and Asia.

Zhaopin Impairment Clouds Earnings

Despite operational gains, SEEK reported a net loss of $177.9 million, primarily due to a substantial $356 million impairment charge related to its 23.5% equity accounted investment in Zhaopin, its Chinese online employment associate. This impairment reflects ongoing weak macroeconomic conditions in China, competitive pressures, and a strategic shift under new management at Zhaopin towards long-term growth areas aligned with China’s economic priorities.

SEEK is also engaged in discussions to simplify Zhaopin’s ownership structure, which could see SEEK’s stake increase to approximately 30%. The impairment includes both the write-down of the equity investment and a reduction in the net receivable from the prior disposal of SEEK’s controlling interest in Zhaopin. This significant charge highlights the challenges of operating in volatile international markets and the impact of strategic recalibrations on reported earnings.

Strategic Integration and Market Positioning

Reflecting its evolving business model, SEEK combined its previously separate Australia-New Zealand (ANZ) and Asia segments into a unified APAC employment marketplaces segment following the completion of its Platform Unification program. This integration has streamlined operations, centralized management, and enhanced technology platform efficiencies, positioning SEEK as a more cohesive regional player.

In Australia, SEEK’s placement share widened to five times that of its nearest competitor, while Asia placement share remained above major competitors despite a slight decline. The company also introduced AI-enabled advertising tiers and pricing enhancements, driving high teens growth in paid job ad yield, which more than offset volume declines caused by freemium launches and softer macroeconomic conditions in markets such as Hong Kong.

Balance Sheet Strength and Shareholder Returns

SEEK maintains a solid financial position with net debt of $990.4 million and undrawn borrowing facilities of $558.5 million, providing liquidity and flexibility for ongoing investments. Capital expenditure increased 24% to $75.4 million, reflecting continued investment in growth initiatives.

Importantly for shareholders, SEEK declared a record interim dividend of 27 cents per share, up 13% from the prior period, signaling confidence in the company’s cash flow generation and long-term prospects despite the reported loss.

Looking Ahead

SEEK’s half-year results paint a picture of a company balancing robust marketplace growth and innovation with the realities of international investment risks. The Zhaopin impairment underscores the challenges ahead in China, while the integration of Sidekicker and platform unification set the stage for sustained growth in the APAC region. Investors will be watching closely for updates on Zhaopin’s ownership restructuring and SEEK’s ability to maintain momentum in a competitive and evolving employment services landscape.