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Seek’s Earnings Down 9% In ‘Weak Ad Environment’

Seek Group’s full year earnings fell by 9% in FY20 to $414.9 million as the company was impacted by the COVID-19 crisis and a weak macro environment. However, Seek was still able to achieve revenue growth of 3%.

Although Seek’s revenues fell by 12% in Australia and New Zealand, it remained the market leader with 33% of placements, highlighting how tough the job postings market is in the current climate.

In FY20 Seek maintained a lead of five times over their nearest competitor in the local market.

“Seek ANZ delivered a resilient result in challenging conditions. In a weak ad volume environment, we saw robust results from our depth products and SMEs,” said Seek CEO and Co-Founder Andrew Bassat.

“When labour markets return to more normal conditions, we expect to generate a high ROI given our market leadership and track record of generating strong returns from investing in product, technology and data. The near-term will continue to pose challenges, but we will remain agile to take advantage of new growth opportunities as they arise.”

Citing the difficult operating conditions, Seek is not paying a final FY20 dividend. “Once economic conditions improve, we intend to resume payment of dividends,” Seek stated.

Seek’s share price tanked when the COVID-19 pandemic hit, falling by 38% in March. It has since recovered, closing at $21.40 yesterday.

Seek ASX 12.08.2020

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