(MENAFN- ABN Newswire) Melbourne, Feb 19, 2018 AEST (ABN Newswire) - SEEK Limited () () ("SEEK") announced its results for 6 months ended 31 December 2017.
- Reported Revenue of A$620.3m (pcp: A$487.9m)
- Reported EBITDA of A$221.2 (pcp: A$170.3m)
- Underlying NPAT (excl significant items & Early Stage Ventures) of A$114.0m (pcp: A$113.6m)
- Reported NPAT of A$102.0m (pcp: A$84.1m)
H1 18: Key Highlights
Record H1 Revenue and EBITDA
- Revenue and EBITDA growth of 26% and 20% (H1 18 vs pcp) (see Note 1 below)
New structure: Positions SEEK for next leg of growth
- Creating the right settings for growth in SEEK's operating businesses and investing activities
- Changes to capitalise on SEEK's global scale in product and technology and opportunities to make value-adding investments
Australia and New Zealand Employment: Record H1 financial results
- Revenue growth of 15% & EBITDA growth of 15%
- Strong financial result validates benefits of sustained reinvestment and strategic execution
International: Progressing well with business model evolution
- Zhaopin: Good results given significant model change and competitive environment
- SEEK Asia: Improving revenue momentum due to business evolution and better macro conditions
Positive guidance provided
- Upgraded EBITDA guidance and confirmed NPAT guidance at upper end of previous range
- H1 18 dividend of 24 cents, growth of 4% compared to pcp
Commenting on H1 18 results, SEEK CEO and Co-Founder Andrew Bassat said:
"SEEK is pleased to deliver strong financial results alongside aggressive reinvestment. In our largest businesses we are seeing investment translate directly into growth in our operating metrics and financial results."
"The success of ANZ's business model evolution provides a strategic roadmap for our international businesses. Our international businesses are in an earlier stage of evolution and we are already seeing strong benefits from our initial investment activities. This has emboldened us to continue investing and accelerate our efforts. If we execute well, we expect there will be significant upside given the large size of their addressable markets."
NEW ORGANISATIONAL STRUCTURE | Positioning SEEK for next leg of growth
Andrew Bassat commented,
"SEEK has significant growth opportunities across our operating businesses and investment activities. We are confident that our new organisational structure will create the right settings to drive the next leg of SEEK's growth. I am particularly pleased that the AP&A leadership appointments have been internal appointments which is testament to SEEK's depth of talent."
- Refer to SEEK's ASX Announcement "Organisational Structure Changes" (29 January 2018) & SEEK's H1 18 Investor Presentation for further detail
AUSTRALIA AND NEW ZEALAND EMPLOYMENT | KEY INSIGHTS
Revenue growth of 15% & EBITDA growth of 15% (Revenue A$196.7m, EBITDA of A$112.2m)
- Strong financial result validates benefits of strategic and operational execution
- Ongoing product innovation and sales and service initiatives are delivering significant value
- Market leader with 34% share of placements, lead of c8x times over our nearest competitor
Andrew Bassat commented,
"We are very pleased with SEEK ANZ's operational and financial results. The business fundamentals are strong and we are delivering significantly more value to candidates and hirers which is ultimately translating into record levels of free cash flow. Given the success of our strategy, we will continue to invest in new initiatives that grow our value proposition to candidates and hirers."
INTERNATIONAL | KEY INSIGHTS
Revenue growth of 10% and EBITDA growth of 3% (Revenue A$340.1m, EBITDA of A$100.7m)
- In constant currency, achieved Revenue growth of 12% and EBITDA growth of 6%
- Significant reinvestment program is positioning International businesses for long term growth
Andrew Bassat said, "SEEK International delivered a creditable result against a backdrop of aggressive investment and weak macro conditions in Latin America."
"Zhaopin achieved a good result which was achieved despite a significant change in business model and aggressive competition. To continue growing against strong competition and to capitalise on a large market opportunity, Zhaopin will continue its aggressive reinvestment focus."
On commenting about SEEK Asia, Andrew Bassat said, "SEEK Asia's operational and financial results are gaining momentum from continued business evolution and improving macro conditions."
SEEK operates market leaders in Latin America. Andrew Bassat said, "Overall, Brazil (Brasil Online) continues to face headwinds from challenging macro conditions but we are seeing some early signs of improvements in hiring activity. Mexico (OCC) results were impacted by modest macro conditions and a large earthquake in Mexico City."
EDUCATION | KEY HIGHLIGHTS
OES: Good underlying financial results alongside strong student outcomes
Andrew Bassat said, "OES continues to deliver good results alongside strong student outcomes. The business is focused on executing on high growth opportunities including scaling up the newly launched Western Sydney University brand and developing new courses and specialisations."
H1 18 DIVIDENDS | 24 cents per share growth of 4% vs pcp
The interim dividend will be paid on 13 April 2018 with a record date of 27 March 2018.
OUTLOOK | SEEK provides updated guidance
SEEK is pleased to provide updated FY18 guidance.
- CONFIRM: Revenue growth in the range of 20% to 25% (FY18 vs FY17)
- UPGRADE: EBITDA growth in the range of 14% to 15% (FY18 vs FY17)
- CONFIRM AT UPPER END OF PREVIOUS RANGE (see Note 2 below): Reported NPAT in the range of A$225m to A$230m before deducting investments in early stage growth options of approximately A$25m to A$30m
In conclusion Andrew Bassat commented,
"SEEK has very exciting growth prospects across the broader human capital management industry. We are uniquely positioned to capitalise on our growth opportunities given our deep relationships with candidates and hirers and significant data assets. Our strategy is focused on solving complex candidate and hirer problems. We are confident that if we invest appropriately to build or acquire the right solutions this will lead to strong returns for our long term shareholders."
Notes:
1 Revenue and EBITDA excluding significant items
2 Previous FY18 NPAT guidance provided at SEEK's FY17 AGM: Reported NPAT in the range of A$220m to A$230m before deducting investments in early stage growth options of approximately A$25m to A$30m
To view FY18 Half Year Results Presentation, please visit:
To view FY18 Half Year Results Report, please visit:
About SEEK Limited
The purpose of () () is to help people live more fulfilling and productive working lives and help organisations succeed. SEEK makes a positive contribution to people's lives on a global scale.
SEEK is the global leader in the creation and operation of online employment markets. Globally SEEK has relationships with over 700,000 hirers and 150 million candidates.
SEEK makes a positive contribution to people's lives through connecting more people to relevant job opportunities using its marketplace scale and technology to build radically more efficient and effective employment marketplaces.
SEEK is listed on the Australian Securities Exchange, and has been listed in the Top 20 Most Innovative Companies Globally by Forbes, and Number One in Australia.
SEEK has been recognised by AON Hewitt as an Employer of Choice ten years straight and is passionate about it's company's culture. SEEK is a leader in workplace diversity and inclusion.
For 20 years SEEK has been an integral part of Australians' job-search process, and as the country's leading employment marketplace is uniquely positioned to empower Australians with career, education and volunteer opportunities to create productive and fulfilling working lives.
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