Seek shares sink after profit fall, lower guidance
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The news: Shares in Seek have slumped 12.7% in early trading on the ASX after the job listings platform reported a sharp drop in first-half profit and sales and downgraded its outlook.
The numbers: Reported net profit for the six months to December 2023 plunged 96% to $35.2 million, although adjusted profit fell by a more modest 24% to $107.5 million. Revenue was down 5% to $596.8 million. The company will pay an interim dividend of 19 cents a share compared to 24 cents a year ago. The weak numbers prompted Seek’s shares to slide nearly 13% to $24.45.
The context: Seek CEO Ian Narev said volumes slowed slightly more than the usual seasonal trend in the last two months of 2023 but it is too early to judge the extent to which this trend will continue in the new year.
The group has now outlined a weaker outlook for FY24, with adjusted net profit seen in the range of $190 million to $220 million (down from $220 million to $260 million) and revenue in the range of $1.15 billion to $1.21 billion (down from $1.18 billion to $1.26 billion).
What they said: "We have assumed that absolute ad volumes continue at this lower level throughout the second half, and therefore forecast that our full year revenue will be at the bottom-end of original guidance," Narev said.
The source: ASX announcement
