Hiring platform Seek swung to a loss last half after the value of its investment in China-based jobs portal Zhaopin plummeted, but has lifted its guidance amid a large increase in revenue.
Sales revenue rose 21% year-over-year to A$647 million, while net revenue was up 12% to $601 million. Its reported loss was $178 million, compared to earnings of $140 million a year ago, though adjusted profit grew 35% to $104 million.
“This was another half of demonstrable progress across all our strategic priorities. Our placement share lead in Australia grew to 4.9x our nearest competitor; and whilst Asia declined slightly, underlying marketplace metrics are strong and improving across the board,” said CEO Ian Narev.
“New products introduced last year are driving customer choice, and creating tangible value that hirers are willing to pay for. The resulting yield growth led to double digit revenue growth, even as macroeconomic conditions continued to impact volumes.”
EBITDA increased 19% to $267 million. Operating expenditures rose 7% to $334 million.
The company also announced a record interim dividend of $0.27 per share.
Across fiscal 2026, it expects net revenue of $1.19-1.23 billion, with adjusted profit of $195-215 million and EBITDA of $530-550 million. In August, it had forecast net revenue of $1.15-1.25 billion, adjusted profit of $190-220 million, and EBITDA of $510-550 million.
The company took a $356 million post-impairment charge on its Zhaopin investment after a review, it said last week. The value of Seek’s investment in Zhaopin dropped from $529 million in June to $182 million in December.
“Zhaopin continues to be impacted by weak macroeconomic conditions in China and competitive pressures,” according to Seek, and has been undergoing a strategic review since a new management team was appointed early in fiscal 2026. Seek first took a 25% stake in Zhaopin in 2006.
Seek’s Growth Fund venture capital business will sell its remaining stake in Employment Hero, the company also said today. Employment Hero sued Seek in July, alleging it had cut off Employment Hero’s access to its automated recruitment platform, but dropped the case in January.
Seek (ASX: SEK) shares closed flat at $17.10 yesterday. Its market capitalisation is $6.11 billion.
