Australia job board Seek (ASX: SEK) provided a trading update today. The group said results for the nine months to 31 March 2021 and outlook for the remainder of the year are ahead of the group’s expectations when its FY21 guidance was set in February 2021, with revenue outperformance being driven primarily by Seek ANZ (primarily SMEs) and Seek Asia.

Seek also announced that all conditions precedent to completion of the Zhaopin transaction have been satisfied and it will reduce its holding in Zhaopin from 61.1% (undiluted) to 23.5%1 (fully diluted). The group added that AUD 500 million (USD 385.7 million) of the total anticipated gross proceeds (AUD 697 million (USD 537.7 million)) were received in April 2021.

Given completion of the Zhaopin Transaction, Seek will deconsolidate Zhaopin from 1 May 2021 and equity account for its minority ownership interest for the remainder of FY21.

Reflecting, improved operating conditions; and the deconsolidation of Zhaopin from 1 May 2021, Seek revised its FY 2021 guidance (excluding significant items):

• Revenue to be in the order of AUD 1.59 billion (USD 1.22 billion)
• EBITDA to be in the order of AUD 480 million (USD 370.4 million)
• Seek Investments Early Stage Ventures losses to be in the order of AUD 50 million (USD 38.6 million) (Seek share of Net Profit After Tax losses)
• Reported Net Profit After Tax to be in the order of AUD 140 million (USD 108.0 million)

However, the group cautioned that forecasting remains challenging due to the Covid-19 pandemic and changes in hiring sentiment as well as currency effects.

Andrew Bassat Founder and CEO of Seek, said, “Completion of the Zhaopin transaction and receipt of funds is an important milestone. A portion of the Zhaopin proceeds will be returned to shareholders as a dividend, which reflects our confidence in Seek’s outlook and ongoing cash generation. Post the dividend, Seek will still have significant balance sheet flexibility for ongoing re-investment and future dividends.”

“We are pleased to upgrade our FY21 guidance,” Bassat continued. “Our willingness to invest through the cycle has meant our key businesses, in particular Seek ANZ and Seek Asia are now capitalising on improving macro conditions. Of note, Seek ANZ continues to benefit from record high levels of SME hiring activity and increasing usage of our depth products. We look forward to providing another update at Seek’s full year results in August.”

Seek set a new 52-week high during today's trading session when it reached AUD 32.92 (USD 25.40). Over this period, the share price is up 88.21%. Shares last traded at SEK 31.30 (USD 24.15), up 1.85% on the day. The company has a market cap of AUD 10.85 billion (USD 8.37 million).