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SEK

SEEK Limited FY19 Results

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

SEEK Limited (ASX: SEK) is an online job-finding and job-searching company that allow people to apply for and look for jobs online. They are based in Australia but engage in multinational operations.

seek limited

What are the results from SEEK FY19?

Today (Tuesday 20th of August 2019) SEEK released its FY19 annual results. The main points are as follows:

  • Total Revenue for FY19 is A1537.3 million, up by 18% from FY18 (16% Constant Currency).
  • Total EBITDA for FY19 is A$455million, up 6% from FY18 (3% Constant Currency).
  • Reported NPAT for FY19 is A$180.3 million, up 245% compared with reported FY18 NPAT.
  • The dividend is 22 cent per share for FY19 in line with pcp.
  • EPS is 51.3 cents per share for FY19.
  • Specific results on Global subsidiary operations are as follows:
  • SEEK Asia revenue for FY19 is A$177 million, up 16% from FY18 (9% Constant Currency).
  • SEEK Australia and New Zealand revenue for FY19 is A$438 million, up 7% from FY18 (7% Constant Currency).
  • LatAm revenue for FY19 is A$93.4 million, down 11% from FY18 (7% Constant Currency).
  • Zhaopin revenue for FY19 is A$647.9 million, up 38% from FY18 (34%Constant Currency).

What were the drivers of this result?

Major drivers of growth for SEEK included growth from SEEK ANZ depth products which assisted in offsetting weak macroeconomic conditions and strong competition. SEEK Asia is benefitting from early integration and first mover advantages.

Early Stage Ventures provided strong growth for SEEK due to the portfolio being filled with investments in emerging leaders who have been exposed to long-term structural trends.

Ongoing and sustained investments from previous years drove a 26% increase in depth revenue.

Zhaopin’s strong performance and growth underpinned a successful FY19 for SEEK.

What is the outlook for SEEK?

Revenue growth for FY20 is expected to be between 15% and 18% form FY19. EBITDA growth for FY20 is expected to range between 8% and 11% from FY19. Reported NPAT for FY20 is expected to range from A$145 to A$155 million.

The outlook is positive for SEEK, as ongoing Investments continue to deliver high returns. Investments in to China through Zhaopin are growing and will continue to grow with heightened demand. Results in Latin America were weak for FY19, but with more exposure and longer market immersion, SEEK can be hopeful of better results in FY20.

What is the market reaction?

The initial market reaction to SEEK FY19 results is negative. The current share price is trading at A$18.65 which represents a 2.35% decrease (10:41 am AEST).

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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