Online jobs listing and employment services group sprang a major surprise on investors yesterday by revealing plans to rejig its dividend payout policy that could very well see the company reward shareholders with smaller payments in coming years.
For some odd reason shares in online employment services group Seek rose yesterday, despite the company warning of a possible dip in full-year earnings because it was stepping up investment in early-stage ventures.
In this week’s video insight Stuart takes a look at Seek’s (ASX:SEK) full year results. In the 2018 year, Seek reported 24.4 per cent revenue growth. This was a strong result driven by an acceleration in revenue growth in the Australasian, Chinese and Asian businesses.
While Online jobs site Seek told the market yesterday that expects to report full-year earnings and revenue at the top end of its guidance range – despite revealing three significant items totalling $142 million – investors just didn’t believe the positive spin and sent the shares down 9% at one stage.
After the latest ANZ job advertising series and UBS proprietary data, the broker concludes that FY19 guidance, which indicates a net profit of around $200m, should be secure. This view is held despite the softening macro conditions and the slowing in domestic job growth.
SEEK has launched new pricing for advertising and database products which will yield an average price rise of 4.5%, with rises skewed to premium products. Morgans says the figures suggest the company could outpace in FY19 but refrains from upgrading a week out from the FY18 results.