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SEEK shares up on first-half profit boost

Simone Ziaziaris  |  19 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Shares in SEEK (ASX: SEK) have risen almost two per cent after the job ads portal lifted first-half profit and tipped full-year profit to be at the upper end of guidance.

The online job-search company booked a 21 per cent rise in profit to $102 million for the six months to December 31, prompted by a sharp jump in revenue.

Sales revenue rose 27 per cent to $620.3 million, from $487.9 million a year ago when weak economic conditions in Brazil and South-East Asia hit the company's international division.

Chief executive Andrew Bassat on Monday said SEEK was beginning to benefit from investments in its international businesses, with the division's revenue up 12 per cent to $340.1 million--mainly due to increased sales from Chinese online recruitment provider, Zhaopin.

"This has emboldened us to continue investing and accelerate our efforts," Mr Bassat said on Monday.

"If we execute well, we expect there will be significant upside given the large size of their addressable markets."

The company's Australian and New Zealand employment division delivered $196.7 million in revenue, 15 per cent stronger than the same period last year, driven by growth in advertising volumes, price increases and premium products.

SEEK also upgraded its earnings growth guidance to between 14 per cent and 15 per cent, from 13 per cent, and said it expects full-year net profit to come in toward the upper end of its $225 million to $230 million guidance.

Investors responded positively to SEEK's financial results, with shares rising 39 cents, or 1.9 per cent to $20.50 by 1216 AEDT on Monday.

SEEK LIFTS HY PROFIT:

* Net profit up 21pc to $102m

* Sales revenue up 27pc to $620.3m

* Interim fully franked dividend up 1 cent to 24 cents

 

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© 2020 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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