Seek’s latest dividend reaches three year high

Seek is a technology company that matches employers with potential candidates, via their online career opportunities advertising service and other related services.

Seek’s latest declared dividend is the highest payment in the past three years. This announcement came after a significant increase in sales and profits achieved in the first half of the 2021-22 financial year.

Seek’s success was largely attributed to its Australian and New Zealand business, where revenue was up 72% compared to the previous year, while its Asia business reported a growth of 42% to revenue. This success could also have been driven by the increase of employees seeking new job opportunities due to changing working conditions.

As a result, Seek declared an interim dividend of 23 cents a share, its best in three years.

Dividend History

Seek’s revenue from continuing operations increased by 59% to $517.2 million, while reported profit from continuing operations was up 152% to $126.7 million. Total reported profit increased by 32% to $88.1 million.

Based on this half year performance, it is projected that the full year’s revenue will be in the range of $1.05 to $1.10 billion. With earnings before interest, taxes, depreciation, and amortisation to be in the range of $490 to $515 million and net profit after tax to be in the range of $230 to $250 million.

Seek is currently on track to have another profitable financial year. This follows a pandemic stricken two years’ period of wild financial performances, including a $113.1 million loss in financial year 2019-20 and a $752.2 million in financial year 2020-21.

Seek’s share price is responding well to the recent good news. It has increased by roughly 5.5% since the announcement.

All in all, Seek is seeking to bounce back strongly after a few years where the pandemic has caused a great concern when it comes to job security, especially in hospitality. While companies and businesses are returning to a new normal, Seek could be an essential service to help achieve this goal.

If you would like to take this opportunity to invest in Seek and don’t already have a trading account, you can register for a Shares or Shares CFD account with GO Markets.

Source: GO Markets MT5, ASX, AFR.