SEEK Posts 21% Revenue Growth and 35% Profit Rise Despite $284m Impairment

Strong Financial Performance Amid Strategic AI Investment

SEEK Limited has unveiled a compelling half-year performance for FY2026, with sales revenue climbing 21% to $647 million and EBITDA increasing 19% to $267 million. This growth was largely fuelled by AI-powered product enhancements and dynamic pricing strategies that boosted paid ad yield by 17%. The company’s adjusted profit surged 35% to $104 million, underscoring operational leverage as costs grew more slowly than revenue.

Despite these gains, SEEK reported a net loss of $178 million, primarily due to a $284 million impairment on its investment in Zhaopin, reflecting ongoing challenges in that market. This impairment highlights the risks inherent in SEEK’s international portfolio but does not overshadow the company’s strong core marketplace performance.

Market Leadership and AI-Driven Competitive Advantage

SEEK’s dominance in the Australian employment marketplace remains unchallenged, with placement share now five times that of its nearest competitor. The company’s proprietary data and AI capabilities have been pivotal in enhancing candidate matching and pricing precision, driving both placement growth and yield. Over 750 million daily data points feed into AI models that continuously refine product offerings, enabling SEEK to deliver more relevant job matches and faster placements.

In Asia, SEEK’s revenue grew modestly despite a 14% decline in paid ad volumes, offset by the successful rollout of freemium models and upgraded ad tiers. While placement share in Asia dipped slightly, the company maintains a strong competitive position across key markets including Hong Kong, Singapore, and the Philippines.

Capital Management and Growth Fund Update

SEEK’s balance sheet remains robust with a net leverage ratio of 2.0x, comfortably within target. Operating cash flows supported a record interim dividend of 27 cents per share, up 13%, reflecting confidence in the company’s cash generation. Capital expenditure increased 24%, reflecting continued investment in AI, technology, and platform enhancements.

The SEEK Growth Fund portfolio value edged up 1% to $2.3 billion, delivering a 33% return on investment. The Fund is actively pursuing liquidity options, including a divestment process for its stake in Employment Hero, signalling a strategic focus on maximising long-term value.

Outlook and Strategic Priorities

Looking ahead, SEEK has tightened its FY2026 guidance, expecting net revenue of approximately $1.19 billion and adjusted profit between $195 million and $215 million. The company anticipates stable volumes in Australia and New Zealand, with cautious revenue growth in Asia due to currency headwinds and market conditions. Operating expenses are forecast to grow mid-to-high single digits, reflecting ongoing investment in AI and product innovation.

SEEK also emphasises its commitment to sustainability and fair hiring practices, leveraging AI to enhance platform integrity and prevent fraudulent activity. This aligns with broader industry efforts to elevate hiring standards across the Asia Pacific region.