SEEK (ASX:SEK) upgrades revenue guidance, rewards shareholders with bonus dividend

Company News

by Michael Luu

Recruitment platform SEEK (ASX:SEK) has decided to reward investors with a windfall dividend, utilising the funds generated from its sell down of Chinese counterpart Zhaopin.

SEEK’s shareholders are expected to receive a bonus of 20 cents per share on May 21, as SEEK plans to release a proportion of the proceeds from downgrading its stake in Zhaopin.

The ASX-listed employment website has so far collected $500 million of the total $697 million in gross revenue from the sell down that reduced SEEK’s majority interest in Zhaopin to 23.5 per cent.

The dividend is accompanied by an upgrade of SEEK’s revenue guidance for FY21 by 40 million. The income estimate for the fiscal year 2021 of $1.74 billion has not taken into account the gross proceeds from the sell-down to be fully received by June 30.

Market analysts recognise the revised guidance and optimism around the dividend as signs of the company’s rebound from pandemic conditions.

Shares in SEEK (ASX:SEK) are trading 3.24 per cent higher at $31.72