Not a subscriber ?  Start your complimentary Premium trial now

News

SEEK lifts half-year profit 11pc, dividend 10pc

Nicholas Grove  |  21 Feb 2017Text size  Decrease  Increase  |  

Page 1 of 1

SEEK Limited's (ASX: SEK) underlying net profit before one-off items for the first half of fiscal 2017 rose 11 per cent on the prior corresponding period to $113.6 million, after strong revenue growth in its Australian and New Zealand division offset weakness in its international operations.

The jobs website operator also reiterated guidance for full-year earnings before significant items of $220 million, at the upper end of its previous guidance range of $215 million to $220 million.

SEEK declared a half-year dividend of 23 cents a share fully franked, up 10 per cent on the prior half-year dividend. The dividend will be paid on 19 April 2017 to shareholders on record as at 29 March 2017.

In a statement to the ASX, SEEK CEO and co-founder Andrew Bassat said the benefit of the company's sustained investment could be seen in the results of SEEK Australia and New Zealand, which achieved revenue growth of 13 per cent.

However, Bassat said the SEEK International division is operating against soft macro conditions and is "at an earlier stage of its business model evolution".

"The subdued conditions are most felt in Brazil and across key markets in South-East Asia," he said.

Last week, SEEK announced plans to privatise its subsidiary, the New York-listed Chinese jobs website Zhaopin. A deal would see two US private equity groups buy the publicly traded shares in Zhaopin, while SEEK would retain a controlling 61.3 per cent stake in the company.

Looking forward, Bassat said SEEK is "uniquely positioned to capture large market opportunities across the broader human capital management industry".

"We are focused on solving complex problems faced by candidates and hirers and delivering on our purpose of helping people live more productive working lives and helping organisations succeed," he said.

"We expect that SEEK's mindset to solve problems and long-term focus will lead to strong returns for our shareholders over the medium to long term."

More from Morningstar

• 3 retail stocks you may want to reconsider

• Santos posts loss but sees better times ahead

 

Nicholas Grove is a Morningstar journalist.

© 2017 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.

Uncover winning investment ideas and strengthen your portfolio with a 4-week free trial to Premium:

  • Your Money Weekly Newsletter
  • Independent Fund Analyst Research
  • Portfolio X-Ray
  • Investment Picks
* only available to new subscribers