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SEEK looking for further earnings growth

SEEK is sticking by its full year profit outlook guidance after reporting underlying profit for the half year rose nine per cent to $102.4 million.

The website of online job search engine 'Seek' on a screen
Job seekers would have been fairly frustrated scrolling the internet for work in February. (AAP)

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Source: AAP


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Online job company SEEK has reaffirmed its full year profit guidance, despite expecting to continue to operate in "subdued" economic conditions.

The company's first half underlying net profit, which excluded the sale of international student recruiter IDP, was up nine per cent to $102.4 million.

SEEK chief executive and co-founder Andrew Bassat described the results as "terrific", given the environment in which they were achieved.

"To be able to achieve the strong growth in fairly subdued economic conditions, we think, is a real testament to all the investments we've made in the last few years," Mr Bassat told AAP.

SEEK's Australia and New Zealand division earnings before tax, depreciation and amortisation grew 18 per cent in the first half, while internationally, earnings were up 36 per cent.

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First half international earnings were higher than the domestic division's contribution for the first time, at $100.6 million and $88.6 million, respectively.

"Some of the growth was due to volume, but a lot of it was new products we've been pushing through," Mr Bassat said.

Domestically, the company's new offerings were headlined by its premium talent search which allows employers and recruiters to search SEEK's entire candidate pool.

More than 345 clients have signed up to the premium search, including 80 per cent of the company's top 20 clients.

Looking to the second half, Mr Bassat said he expected "more of the same" from the Australian economy.

The company predicts full year earnings will grow five to eight per cent, and revenue to increase 15-18 per cent.

Profit is expected to be about $195 million.

Mr Bassat said he believed SEEK's domestic and international growth still had a long way to go.

"If we look at the broader market we think we can help job seekers and hirers a lot more in the next five years," he said.

"We've got a very significant platform already across China, south-east Asia and South America."

Last week, Australian Bureau of Statistics figures showed that unemployment in January ticked up to 6.0 per cent, from 5.8 per cent.

"We'd hope it was coming down a bit and it may come down a little bit from where it is," Mr Bassat said.

Seek's shares closed up $1.05, or 7.88 per cent, at $14.38.

SEEK FINDS PROFIT GROWTH

* Net profit up 50pct to $275.1m

* Underlying net profit up 9pct to $102.4m

* Revenue up 22pct to $482m

* Interim dividend of 21 cents a share, up from 19 cents


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