SEEK (ASX: SEK) Delivers Strong Operational Performance in 1H25, Lifts Dividend 26%

SEEK (ASX: SEK) has posted a solid first half for FY25, showcasing strength across all strategic priorities—placement share, yield growth, and operating leverage. While revenue dipped slightly due to lower job ad volumes, the company more than made up for it with higher yields, reduced expenditure, and a major boost in free cash flow.

SEEK CEO Ian Narev emphasized the strong execution, noting that placement share continued to grow across ANZ and Asia, with SEEK reclaiming the number-one spot in Singapore and the Philippines. The company’s Platform Unification has now unlocked efficiency gains, allowing for continued investment in AI, trust, and product innovation while keeping costs in check.

Key Financial Highlights

  • Sales revenue: $536.2 million, down 4%
  • EBITDA: $223.9 million, down 9%
  • Adjusted Profit: $77.0 million, down 28%
  • Reported Profit: $139.8 million (up significantly due to SEEK Growth Fund valuation gains)
  • Free cash flow: $81.8 million, up 93%
  • Interim dividend: 24 cents per share (fully franked), up 26%

Strength in Strategic Execution

ANZ & Asia Performance

  • ANZ revenue: $416.3 million (-4%), with a 14% drop in job ad volumes offset by a 10% increase in yield.
  • Asia revenue: $119.9 million (-3%), with a similar 14% decline in volumes, but yield jumped 19% thanks to variable pricing and premium ad adoption.

Cost Discipline & Operating Leverage

  • Total expenditure down 6%, with operating expenses flat and capital expenditure dropping 29%.
  • Efficiency gains from Platform Unification have allowed for faster product rollouts, including a new mid-tier ad product and improved job recommendations.

SEEK Growth Fund Delivers Strong Returns

  • The Fund’s valuation increased 5% this half and 30% since inception, driven by strong performance in HR SaaS assets.
  • SEEK will receive $79 million from the partial sale of Employment Hero to KKR, at a 19% premium to its prior valuation. The proceeds will be used to reduce debt.

FY25 Outlook & Guidance

SEEK reaffirmed its FY25 revenue guidance of $1.06–$1.10 billion, with expectations of stable to slightly weaker job ad volumes in some markets. However, strong cost management means total expenditure is now expected to be lower than originally forecast, supporting free cash flow growth.

CEO Ian Narev remains confident:

“The operational outcomes of the first half give us the confidence and capacity to continue executing against our key strategic initiatives, which will position us well as market conditions improve.”

With a strong balance sheet, disciplined execution, and ongoing investment in product innovation, SEEK is well-placed to capture future opportunities. Investors will also welcome the 26% lift in the interim dividend, reflecting management’s confidence in cash flow strength.