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