Seek Lifts Dividend as AI-Driven Yields Fuel 35% Profit Surge

The company’s continuing operations revenue climbed 12% to A$600.9 million, supported by a 17% yield increase across the Australia and New Zealand markets. This gain was primarily achieved through the implementation of AI-enabled advertising tiers and performance-based pricing, which successfully offset a 2% decline in total ad volumes. Chief Executive Ian Narev stated that by prioritizing discretionary capital toward product development and containing routine operational costs, the firm maintained cost growth well below its revenue trajectory.

The Impact of Chinese Impairments

On a statutory basis, Seek swung to a A$249.9 million net loss, weighed down by a significant A$356 million impairment of its minority stake in the Chinese platform Zhaopin. This marks the second write-down for the asset in 18 months, a move Seek attributed to China’s sluggish macroeconomic recovery. Despite the valuation cut, Narev emphasized that the Zhaopin investment has still generated a 3x return for shareholders since the company began divesting its majority stake in 2021.

Following the half-year results, the company tightened its full-year outlook, raising the bottom end of its earnings and profit targets. According to the updated guidance, Seek now expects:

• An adjusted net profit between A$195 million and A$215 million.
• Total revenue ranging from A$1.19 billion to A$1.23 billion.
• Earnings (EBITDA) between A$530 million and A$550 million.

Management indicated that total expenditure is expected to land between A$810 million and A$840 million, with the final figure contingent on revenue performance through the remainder of the fiscal year.