Seek Limited (ASX:SEK) Announces H1 FY2025 Results and Increased Dividend
H1 FY2025 Highlights
Seek Limited reported strong performance across all strategic priorities in H1 FY2025, including placement share, yield growth, and operating leverage. The company achieved a return to leading placement share in all Asia markets and recorded double-digit yield growth, offsetting weaker market volumes. Total expenditure decreased by 6%, driven by a 29% reduction in capital costs, and free cash flow increased by 93%, enabling a higher interim dividend. The SEEK Growth Fund’s valuation rose by 5%, supported by a partial sell-down of its Employment Hero stake.
Financial Performance
In H1 FY2025, Seek’s sales revenue declined by 4% to A$536.2 million compared to A$558.0 million in H1 FY2024. ANZ revenue fell by 4%, and Asia revenue decreased by 3%. Operating expenses remained stable, while capital expenditure was reduced by 29%. Adjusted profit was A$77.0 million, down 28%, and reported profit rose to A$139.8 million. Free cash flow increased significantly by 93%. The interim dividend per share was increased by 26% to 24 cents.
Executive Comments
SEEK CEO and Managing Director, Ian Narev said: “Operational outcomes in this half were uniformly strong. Placement share in ANZ continued to grow, reaching its highest level since 2020. Product innovation and sales execution led to placement share gains that enabled us to regain the number one position in Singapore and the Philippines, and retain that position in our other Asia markets. Overall market metrics on both sides of the marketplace were strong across the board.
Revenue for the period was slightly lower due to market volumes; continuing yield growth offset much of the impact. Efficiency opportunities post Platform Unification, including moving to a simpler more unified organisation structure, meant we could continue high levels of product innovation in priority areas such as AI and trust whilst reducing total expenditure. This led to a significant increase in free cash flow despite the weaker revenue environment.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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