Highlights:
- On Tuesday, Seek Limited (ASX: SEK) lowered its FY23 revenue guidance due to moderation in job ad volumes.
- SEK’s FY23 revenue is now predicted to be AU$1.245 billion, nearly AU$15 million lesser than was predicted in 1HFY23 results announcement at AU$1.26 billion.
- As per its strategy update presentation, SEK’s dividend policy aims at a payout of more than 75% of Cash NPAT less Capex.
Human resource consulting company Seek Ltd (ASX:SEK) was trading down by 3.056% at AU$23.470 on Tuesday, 4 April 2023, around 11:45 am AEST, after the company lowered its FY23 revenue guidance.
In February, the company released its 1HFY23 results, wherein it gave earnings guidance for the current fiscal year. In today’s revised guidance, the company unchanged its FY23 EBITDA guidance of around AU$560 million and NPAT expectation of nearly AU$250 million.
However, the company said that based on trading momentum for the 3Q period, revenue for FY23 might be a bit lesser at AU$1.245 billion compared to its previous revenue guidance of AU$1.26 billion (nearly AU$15 million lesser) on the back of continued moderation of job ad volumes.
However, the company anticipates lesser full-year revenue to be offset by lesser-than-expected operating expenses.
Seek’s 1HFY23 results
In its 1HFY23 ended 31 December 2022, sales revenue (from continuing operations) was 21% higher at AU$626.7 million, up from AU$517.2 million in pcp. It was propelled by increased job ad volumes and greater yield from higher adoption of depth products and rising ad prices.
EBITDA (from continuing operations) increased 13% to AU$283.4 million from AU$250.6 million in pcp. Net profit from continuing operations (except significant items grew 9% to AU$135 million against AU$124.2 million in pcp. It gained from increased EBITDA, partly offset by greater depreciation and amortisation and net interest expense.
SEK’s board members declared an interim distribution of 100% franked 24 cps, payable on 5 April 2023. It reflected a payout of 95% of Cash NPAT less Capex.
Seek’s strategy update presentation
Further, on Tuesday, Seek also released a strategy update presentation where it mentioned that its APAC total addressable recruitment value pool is around AU$35 billion, and it is expected to increase by nearly 5% every year till FY28. The company’s ANZ business has produced significant value, with a monthly paid ad volume of 284K, 13 million monthly unique visitors and 10 million monthly applications and talent search connections.
SEK has delivered robust results in the Asia region, with a monthly paid ad volume of 241K, 17 million monthly unique visitors and 36 million monthly applications and talent search connections.
The company’s capital management framework is focused on providing sustainable returns. Its dividend policy aims at a payout of more than 75% of Cash NPAT less Capex. At the same time, capital flexibility will aid M&A or further distributions to stakeholders.