Seek Earnings: Continued Improvement in Monetization While Gaining Market Share

We increase our fair value estimate for narrow-moat Seek by 5% to AUD 21 per share following half-year results. Seek’s ANZ business, which accounts for three-fourths of group revenue, saw revenue decrease by 4% and EBITDA decline by 6%. Seek’s Asia business saw revenue decrease by 3% and EBITDA decline by 33%. The results were in line with the company’s previous guidance and our forecasts. Corporate costs declined by 17%, which was better than our estimates. At current prices, Seek shares screen as slightly overvalued.