Seek Lowers Dividend and Revises Annual Guidance


Seeking Lower Dividend and Reduced Annual Guidance

Seek has made the decision to lower its dividend and revise its annual guidance following a significant drop in first-half profit. For the six months through December, the company reported an underlying net profit from continuing operations of AUD 35.2 million ($23.0 million), marking a 74% decline compared to the previous year’s AUD 135.0 million. Adjusted net profit also fell by 24% to AUD 107.5 million.

Analyst Forecasts Disrupted

Analysts had initially anticipated an underlying net profit of AUD 126 million for this period. However, Seek’s performance fell short of these expectations. The company’s first-half revenue totaled AUD 596.8 million, down from AUD 626.7 million the previous year and below the projected AUD 617 million.

Decreased Ad Volumes Impacting Revenue

Seek attributed the decline in revenue to a decrease in national job ad volumes, which were down 17% compared to the previous year’s December figures. As a result of these challenges, the company decided to reduce its dividend per share from AUD 0.24 to AUD 0.19.

Revised Annual Guidance

Seek has adjusted its annual revenue guidance to be in the range of AUD 1.15 billion to AUD 1.21 billion, as compared to the previous guidance of AUD 1.18 billion to AUD 1.26 billion. Additionally, the company now anticipates earnings before interest, tax, depreciation, and amortization to fall in the range of AUD 490 million to AUD 530 million, down from the earlier projection of AUD 520 million to AUD 560 million.

Market Reaction and Adjusted Net Profit Expectations

Analysts at Morgan Stanley predicted that any revision to Seek’s guidance would likely result in a significant drop in share prices. This anticipation stems from the current level of uncertainty surrounding macroeconomic conditions and the path of economies following a period of elevated interest rates. Seek now expects an adjusted net profit in the range of AUD 190 million to AUD 220 million, which is close to market expectations falling toward the lower end of their previous range of AUD 220 million to AUD 260 million.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

The Changing Outlook for Interest Rates

Next Post

Turkey’s Current Account Deficit Narrows in December

Related Posts