Online jobs group, SEEK is looking at a 10% boost to earnings this financial year after reporting its strongest domestic full-year revenue growth in five years in the year to June.
The Melbourne-based company yesterday reported a 15% rise in domestic revenues to $313.1 million, and an 18% jump in international revenues more than $592 million.
Net profit jumped 27% to $357 million, thanks to the boost from the sale of a 50% stake in education business IDP which produced a gain of $181.7 million.
Underlying profit was up amore sedate 3% to $198.1 million, compared with $193 million in the prior corresponding year, excluding significant items and early stage ventures.
Revenue across the group rose 11%to $950.4 million, while earnings before interest tax, depreciation and amortisation (EBITDA) were up 5% to $366.7 million.
SEEK will pay a final dividend of 19 cents a share, making a full year payments of 40 cents a share, up 11% on 2014-15’s payout.
SEEK repeated previous guidance that it would deliver a full-year profit between $215 million and $220 million in 2016-2017 and CEO, Andrew Bassat, says the company is reinvesting aggressively in its platform to ensure future growth.
Seek is also “making strategic acquisitions” in the human capital management industry, and area which covers a range of employee services, including payroll.
“We are pleased with Seek’s progress but there remains significant untapped opportunities,” he says. “Our focus is to aggressively invest and execute our growth strategy.”
The company says it has identified large market opportunities across both its Australian and its international businesses.
“There are areas of the market that are either occurring at a high cost and/or being performed offline or in an inefficient manner,” Seek said in its annual report released yesterday.
“Seek believes that via technology and data, its experience in building online marketplaces and relationships with hirers and candidates positions the business to solve large and complex problems for hirers and candidates.”
Mr Bassat, a co-founder of the company, said the company is uniquely positioned to play in the human capital management industry market given its global scale and breadth and depth of its relationships with more than 150 million jobseekers and 700,000 hirers.
“We expect that our reinvestment to address the unmet needs of candidates and hirers will in turn increase the size of Seek’s addressable market opportunity and grow seek’s market leadership,” he said.
“Seek has a long and sustained track record of reinvestment and undertaking M&A which has led to strong growth in financial results and shareholder value.
“Our expectation is that our latest endeavours will position the business to capture large market opportunities and generate strong returns to shareholders over the medium to long-term.”
Seek shares eased 1% to $16.36.
