Seek shares plunge after profit fall, weak guidance

The news: Shares in Seek sunk more than 9% after the job listings platform reported a drop in full-year profit and outlined a weak outlook.

The numbers: Reported net profit for the year to 30 June fell 16% to $203 million, even though revenue rose 10% to $1.23 billion. The company will pay a final dividend of 23 cents per share. It prompted Seek’s shares to slide more than 9% to $23.43 in early trading on the ASX.

The context: Seek expects higher unemployment and lower job ad volumes for the ANZ region in the year ahead, as rate increases slow the economy. Accordingly, the group has outlined a weaker outlook for FY24, with adjusted net profit seen in the range of $220 million-$260 million and revenue in the range of $1.18 billion-$1.26 billion, indicating little growth on the previous year.