FY2025 Half Year Results Announcement
| Stock | Seek Ltd (SEK.ASX) |
|---|---|
| Release Time | 18 Feb 2025, 8:53 a.m. |
| Price Sensitive | Yes |
SEEK Ltd Reports FY2025 Half Year Results
- Strong trajectory across all brand metrics with improved placement share in ANZ and Asia
- Double digit yield growth offsetting weaker market volumes
- Reduction in total expenditure enabling operating leverage
- Increase in free cash flow and higher interim dividend
- Partial sell-down of Employment Hero stake by SEEK Growth Fund
SEEK Limited has reported its FY2025 Half Year Results, highlighting strength across its strategic priorities. The company saw further improvement in ANZ placement share, returning to leading placement share in all Asia markets. Double digit yield growth largely offset weaker market volumes, leading to a 4% decline in revenue. Total expenditure was reduced by 6%, with operating expenses stable and capital expenditure down 29%, providing the foundation for operating leverage. This drove a 93% increase in free cash flow, enabling a 26% increase in the interim dividend to 24 cents per share. The SEEK Growth Fund also saw its valuation increase by 5% during the period, reflecting transaction activity within the HR SaaS assets including the planned partial sell-down of Employment Hero. SEEK will allocate the proceeds from the partial sell-down to debt reduction. Looking ahead, the company has provided FY2025 guidance, with revenue expected in the range of A$1.06bn to A$1.10bn, total expenditure of A$750m to A$770m, EBITDA of A$440m to A$470m, and Adjusted Profit of A$135m to A$160m.
FY2025 guidance (excluding the Fund and significant items): Revenue of approximately A$1.06bn to A$1.10bn; Total expenditure of A$750m to A$770m (Operating expenses of approximately A$620m to A$630m, Capital expenditure of approximately A$130m to A$140m); EBITDA of approximately A$440m to A$470m; Adjusted Profit of approximately A$135m to A$160m.
Labour market conditions vary across SEEK's APAC markets, with job ad volumes relatively stable in Australia but weaker in New Zealand and Hong Kong. The company expects to continue executing against its key strategic initiatives, which will position it well as market conditions improve.