Seek (ASX:SEK) lifts interim dividend to its best in 3 years

Company News

by Lauren Evans

Seek (ASX:SEK) has lifted its interim dividend after posting strong sales and profit for the first half of the 2022 financial year.

The online job platform’s sales revenue rose 59 per cent to $517.2 million, while profit jumped 152 per cent to $126.7 million as businesses recovered from Covid-related cuts. The company declared a first half interim dividend of 23 cents per share, its best one in three years.

Seek's ANZ division rose its revenue by 72 per cent from the prior year period, while its Asia division rose revenue by 42 per cent.

“Market conditions across our ANZ and Asia businesses were favourable for revenue growth. Businesses continued to rehire following Covid-related cuts, and in many cases restarted investment,” said chief executive officer Ian Narev. 

“Whilst candidate activity on our sites remained high, application rates were weaker, which in turn drove greater depth adoption. Previous investments, in particular the flexibility of our new ANZ contract and pricing model, positioned us well to capture these opportunities.” 

The company expects FY22 revenue to be in the range of $1.05 to $1.10 billion, earnings before interest, taxes, depreciation and amortisation to be in the range of $490 to $515 million, and net profit after tax to be in the range of $230 to $250 million.

“Our key markets are experiencing, to varying degrees, a combination of ongoing economic recovery, relatively low unemployment rates and continued restrictions on labour mobility. Job ad volumes and depth adoption remain high. We have assumed these conditions continue for the remainder of this financial year, and have therefore upgraded our guidance.”

“The revised guidance assumes a low risk of economic volatility from the ongoing development of the pandemic, monetary policy, and geopolitical change. If these risks are elevated, revenue could fall below guidance."

Shares in Seek (ASX:SEK) are trading 7.4 per cent higher at $29.84. 

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