Equity Analysis /

AU : SEEK - Dialled up the volume in FY22

    Steven Sassine
    Steven Sassine

    Research Associate

    16 August 2022
    Published byCGS-CIMB

    SEEK’s FY22 topline result (~A$1.12bn, +47% on pcp) came in ~2% above the upper end of management’s guidance, whilst EBITDA (~A$509m,+53% on pcp) came within the guided range but was ~2% under consensus. It was a strong FY22 result overall in our view, however additional IT project spend (platform unification) was a surprise to a degree. We lower our FY23-FY25 EPS estimates by ~7-14% factoring in the provided guidance, additional incremental IT investment spend, and further conservatism around opex normalisation/spend over our forecast period. Our price target is lowered to A$29.40 on the above changes. Whilst we expect job ad volume growth to normalise, we believe SEEK has levers to pull (i.e. price) to continue to drive yield. We move to an ADD recommendation.