Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

This year. We're going Beyond.

Seek (ASX:SEK) share price gets an upgrade on update

The Seek Limited (ASX: SEK) share price went up by as much as 3% today upon an upgrade in guidance. How does this update affect the Seek share price?

SEK share price

Source: Rask Media SEK 2-year share price chart

Seek reduces stake in Zhaopin

As reported previously, Seek has officially completed its reduction of its holding Zhaopin. Its interest in Zhaopin has gone from 61.1% (undiluted) to 23.5% (fully diluted). Click here to find out more about dilution.

The company expects to receive around $697 million for this sell-down.

The Founder and CEO of Seek, Andrew Bassat advised these proceeds will be returned to shareholders as a dividend.

Operating conditions improve

Seek has upgraded its FY21 guidance due to revenue outperformance driven by its Australian and New Zealand (ANZ) and Asia operations.

Accounting for the improved operating conditions and reduction of its stake in Zhapin from 1 May 2021, Seek has provided the following guidance.

  • Revenue to hit $1.59 billion
  • Earnings before interest, tax, depreciation and amortisation (EBITDA explained) to be around $480 million
  • Statutory net profit after tax of $140 million

Andrew Bassat also noted the outperformance has also been caused by record-high levels of hiring activity across small to medium enterprises.

What now for Seek?

The improved operating conditions are reflective of the strengthening recovery in economic activity as the globe gets a better grip over COVID.

Further, it appears Seek is channelling more energy towards its core operations in light of the reduced stake in Zhaopin.

I think the tailwinds experienced recently will likely continue over the longer term. This combined with Seek re-focusing on its core operations could generate strong value in the future.

If you are interested in other ASX growth shares, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

 

Got $1,000? Try our #1 growth stock...

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or enter your email below. We'll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Got $1,000? Try this...

Rask's top analyst has just identified his #1 'MedTech' stock idea for 2021 and beyond. This is a SERIOUS growth stock.

CLICK HERE to get the ASX stock ticker code, 3,500-word analysis and ASX founder interview!

Our expert investment reports are 100% free.

Simply click here or the button below. We'll email you the report.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading: