Seek shares lift on FY guidance
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More news: Seek shares climbed on the ASX after the job listings platform recorded better-than-expected job ads volumes in Australia at the start of FY25 and removed the top end of its full-year expenditure guidance.
Shares were up 2.7% to $26.23 by 1:30pm AEDT.
E&P analyst Entcho Raykovski said Seek's trading update was "broadly consistent" with observable volume trends.
While job ad volumes are tracking ahead of expectations in Australia, Seek's biggest segment, it is likely too early to make any changes to full-year guidance, he noted.
What they said: "The market should be pleased that the top end of total expenditure has been removed, albeit given the potential shift from capex to opex, the reduction appears more likely to come from lower capex," Raykovski said.
Seek narrows full-year expenditure guidance
The news: Job listings platform Seek has reiterated its full-year guidance for adjusted profit and revenue but narrowed its expenditure guidance range, after stronger-than-expected performance in Australia and softer volumes in New Zealand and Asia at the start of FY25.
The numbers: Seek reduced its full-year expenditure guidance range from $740 million to $810 million, to $760 million to $790 million, stating that at its year-to-date run rate, expenditure is unlikely to reach the top end of the previous range even if full-year revenue is higher than expected.
Elsewhere, Seek reiterated its adjusted NPAT guidance of between $130 million to $180 million and kept its revenue guidance of between $1.02 billion and $1.14 billion unchanged.
The context: Seek noted that volumes in Australia have been "slightly above expectations" at the start of FY25, with unemployment tracking lower than most economists expected.
However, New Zealand volumes have continued to trend downwards, the company said, while volumes across Asia have been mixed and overall "slightly lower" than expected. In particular, volumes in Hong Kong have been impacted by economic uncertainty in the region.
The sources: ASX announcement, E&P Capital research
